https://www.taxtmi.com/caselaws?id=168728 An injunction under Section 9 of the Arbitration and Conciliation Act, 1996 to restrain encashment of a letter of credit is available only in exceptional cases of egregious fraud vitiating the instrument or irretrievable injustice. A bank guarantee or letter of credit must ordinarily be honoured according to its terms, and disputes under the underlying contract do not justify restraint. On the facts, the pleadings did not disclose fraud of the required level; the dispute concerned only part of a consignment, some documents had already been negotiated, and apprehended difficulty in recovery from a foreign company was insufficient where a bank guarantee had already been obtained in related proceedings. No case was made out for interim protection. en-us Tue, 07 Aug 2007 00:00:00 +0530 Fri, 13 Nov 2015 23:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168728 An injunction under Section 9 of the Arbitration and Conciliation Act, 1996 to restrain encashment of a letter of credit is available only in exceptional cases of egregious fraud vitiating the instrument or irretrievable injustice. A bank guarantee or letter of credit must ordinarily be honoured according to its terms, and disputes under the underlying contract do not justify restraint. On the facts, the pleadings did not disclose fraud of the required level; the dispute concerned only part of a consignment, some documents had already been negotiated, and apprehended difficulty in recovery from a foreign company was insufficient where a bank guarantee had already been obtained in related proceedings. No case was made out for interim protection. Case-Laws Indian Laws Tue, 07 Aug 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168728