Bank guarantee encashment stayed pending appeal, while the appellate authority was directed to decide the stay application expeditiously.

A bank guarantee furnished in connection with imports was protected from encashment until the appeal was decided, preserving interim status quo pending appellate review. The HC also directed the appellate authority to dispose of the appeal and the stay application within four weeks, ensuring prompt determination of the pending challenge. The operative effect was to restrain encashment of the guarantee until disposal of the appeal while requiring expeditious consideration of both matters.

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Issues: Whether the bank guarantee furnished in connection with the import could be encashed pending disposal of the appeal and stay application, and whether the appellate authority should be directed to dispose of both matters expeditiously.

Outcome: The writ petition was disposed of with a direction to the authority to decide the appeal and stay application within four weeks, and the bank guarantee was ordered not to be encashed until disposal of the appeal.

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