https://www.taxtmi.com/caselaws?id=109336 Bank guarantees are independent undertakings and courts will restrain invocation or encashment only on a clear prima facie case of fraud or comparable special equity. A bare allegation of fraud is insufficient unless supported by specific pleadings and material facts. On the facts discussed, no such case was shown, so the injunction against enforcement was unjustified. Winding up of the contractor and appointment of a provisional liquidator did not suspend or defeat the separate liability under the guarantees, particularly where the guarantee terms preserved enforceability despite liquidation or insolvency. The guarantees remained enforceable as independent contracts. en-us Fri, 16 Jan 2004 00:00:00 +0530 Sat, 07 Apr 2012 18:57:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=109336 Bank guarantees are independent undertakings and courts will restrain invocation or encashment only on a clear prima facie case of fraud or comparable special equity. A bare allegation of fraud is insufficient unless supported by specific pleadings and material facts. On the facts discussed, no such case was shown, so the injunction against enforcement was unjustified. Winding up of the contractor and appointment of a provisional liquidator did not suspend or defeat the separate liability under the guarantees, particularly where the guarantee terms preserved enforceability despite liquidation or insolvency. The guarantees remained enforceable as independent contracts. Case-Laws Companies Law Fri, 16 Jan 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=109336