Deposit condition stayed permitting bank guarantee as security and suspension of coercive action for four weeks.

The High Court's condition requiring a specified monetary deposit was stayed for a four week period on the petitioner's undertaking to furnish the directed security by way of a bank guarantee; the stay preserves the petitioner from coercive steps during that period and the petitioner is permitted to furnish the deposit as a bank guarantee within four weeks, with notice returnable after that period. The operative points are acceptance of a bank guarantee as equivalent security and a temporary suspension of enforcement of the deposit condition pending further orders.

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Issues: Whether the condition imposed by the High Court requiring deposit of Rs.1 crore should be stayed pending the petition and whether the deposit may be furnished in the form of a bank guarantee.

Analysis: The petitioner offered to furnish the deposit directed by the Chief Judicial Magistrate and upheld by the High Court in the form of a bank guarantee. In view of that undertaking, notice was issued returnable within four weeks and the operation of the High Court order insofar as approval of the condition of deposit of Rs.1 crore was stayed for the four week period. No coercive steps are to be taken against the petitioner during that period.

Conclusion: The High Court order is stayed insofar as the requirement to deposit Rs.1 crore; the petitioner is permitted to furnish the deposit by way of a bank guarantee within four weeks and no coercive action shall be taken in that period.

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