https://www.taxtmi.com/caselaws?id=178382 A clear commercial instrument must be construed on its own terms, and extrinsic correspondence or oral evidence cannot change its legal character when the wording is unambiguous. Applying that principle, the document was treated as a contract of indemnity, not an unconditional bank guarantee, because it expressly undertook to indemnify and lacked the usual guarantee language. The direction awarding interest at 14% per annum was also found unsustainable, as the earlier interim order had contemplated repayment with interest at 12% per annum if the suit succeeded. en-us Thu, 06 Jul 2006 00:00:00 +0530 Mon, 04 Mar 2024 11:58:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178382 A clear commercial instrument must be construed on its own terms, and extrinsic correspondence or oral evidence cannot change its legal character when the wording is unambiguous. Applying that principle, the document was treated as a contract of indemnity, not an unconditional bank guarantee, because it expressly undertook to indemnify and lacked the usual guarantee language. The direction awarding interest at 14% per annum was also found unsustainable, as the earlier interim order had contemplated repayment with interest at 12% per annum if the suit succeeded. Case-Laws Indian Laws Thu, 06 Jul 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178382