TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether, in the circumstances arising from the nationwide lockdown and the asserted impediment to contractual performance, invocation and encashment of the respondent's bank guarantees should be restrained by an ad interim injunction under Section 9 of the Arbitration and Conciliation Act, 1996.
Analysis: The legal position governing interference with unconditional bank guarantees was treated as settled: such guarantees are ordinarily enforceable according to their terms, but injunction may issue in exceptional cases of clear fraud, special equities, or irretrievable injury. The Court found that the sudden and unprecedented lockdown created by the COVID-19 pandemic was prima facie in the nature of force majeure, that the petitioner had been carrying on work until the lockdown intervened, and that the restrictions materially affected movement of personnel and continuation of drilling operations. On the materials before it, the Court held that the petitioner had shown a prima facie case of special equities and the possibility of irretrievable prejudice if the guarantees were allowed to be encashed immediately.
Conclusion: Ad interim restraint on invocation and encashment of the eight bank guarantees was warranted in favour of the petitioner, pending further hearing.
TaxTMI 
