https://www.taxtmi.com/caselaws?id=103366 Unconditional bank guarantees must be honoured according to their terms, and courts will not restrain encashment merely because disputes exist under the underlying contract. Interference is confined to exceptional cases involving egregious fraud going to the root of the guarantee or irretrievable injustice of an exceptional character; on the stated facts, neither exception was established, so restraint was unsustainable. Pendency of proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985 did not itself show impossibility of recovery or exceptional injury, and therefore did not justify an injunction against enforcement of the guarantees. en-us Wed, 04 Dec 1996 00:00:00 +0530 Wed, 30 Jul 2014 16:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103366 Unconditional bank guarantees must be honoured according to their terms, and courts will not restrain encashment merely because disputes exist under the underlying contract. Interference is confined to exceptional cases involving egregious fraud going to the root of the guarantee or irretrievable injustice of an exceptional character; on the stated facts, neither exception was established, so restraint was unsustainable. Pendency of proceedings under the Sick Industrial Companies (Special Provisions) Act, 1985 did not itself show impossibility of recovery or exceptional injury, and therefore did not justify an injunction against enforcement of the guarantees. Case-Laws Companies Law Wed, 04 Dec 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103366