https://www.taxtmi.com/caselaws?id=256487 Irrevocable and unconditional bank guarantees payable on demand cannot be restrained merely because the underlying contractual dispute remains unresolved. Injunction against invocation is available only in exceptional cases where egregious fraud is specifically pleaded and established, or where encashment would cause irretrievable injustice. Here, the petitioner failed to plead concrete facts of fraud, and the grievance over escalation charges and running bills arose from the contract dispute itself. The record also did not show that the beneficiary was insolvent or financially incapable of restitution. The petitioner was therefore not entitled to restrain invocation of the guarantees. en-us Wed, 10 Dec 2014 00:00:00 +0530 Sat, 14 Feb 2015 11:23:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=256487 Irrevocable and unconditional bank guarantees payable on demand cannot be restrained merely because the underlying contractual dispute remains unresolved. Injunction against invocation is available only in exceptional cases where egregious fraud is specifically pleaded and established, or where encashment would cause irretrievable injustice. Here, the petitioner failed to plead concrete facts of fraud, and the grievance over escalation charges and running bills arose from the contract dispute itself. The record also did not show that the beneficiary was insolvent or financially incapable of restitution. The petitioner was therefore not entitled to restrain invocation of the guarantees. Case-Laws Indian Laws Wed, 10 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=256487