https://www.taxtmi.com/caselaws?id=105019 Injunction against encashment of a confirmed bank guarantee is exceptional and will be granted only on a prima facie case of egregious fraud or special equities amounting to irretrievable injustice. A dispute over whether contractual obligations were performed, or whether liquidated damages were payable, was held to be a matter for arbitration and not a sufficient basis to restrain invocation of the guarantee. Financial hardship alone did not justify interference with an on-demand guarantee. The invocation was treated as consistent with the contractual mechanism for curing breach and claiming liquidated damages, so restraint on encashment was refused and the security remained enforceable pending resolution of the underlying dispute in arbitration. en-us Mon, 22 Nov 1999 00:00:00 +0530 Fri, 02 Mar 2012 12:00:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=105019 Injunction against encashment of a confirmed bank guarantee is exceptional and will be granted only on a prima facie case of egregious fraud or special equities amounting to irretrievable injustice. A dispute over whether contractual obligations were performed, or whether liquidated damages were payable, was held to be a matter for arbitration and not a sufficient basis to restrain invocation of the guarantee. Financial hardship alone did not justify interference with an on-demand guarantee. The invocation was treated as consistent with the contractual mechanism for curing breach and claiming liquidated damages, so restraint on encashment was refused and the security remained enforceable pending resolution of the underlying dispute in arbitration. Case-Laws Companies Law Mon, 22 Nov 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=105019