https://www.taxtmi.com/caselaws?id=184745 An unconditional bank guarantee is ordinarily enforceable on demand because it is independent of the underlying contract. Judicial restraint applies except in established fraud or irretrievable injustice supported by special equities, and pending arbitration does not dilute enforcement. An injunction affecting the counter-guarantee does not provide a defence to the beneficiary's claim, and the Foreign Exchange Manual did not bar payment to the resident beneficiary merely because reimbursement from the overseas bank was disputed. Unconditional leave to defend was therefore not justified, and the defence based on the guarantee dispute was untenable. en-us Fri, 21 Jul 2000 00:00:00 +0530 Tue, 19 Jul 2016 11:38:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184745 An unconditional bank guarantee is ordinarily enforceable on demand because it is independent of the underlying contract. Judicial restraint applies except in established fraud or irretrievable injustice supported by special equities, and pending arbitration does not dilute enforcement. An injunction affecting the counter-guarantee does not provide a defence to the beneficiary's claim, and the Foreign Exchange Manual did not bar payment to the resident beneficiary merely because reimbursement from the overseas bank was disputed. Unconditional leave to defend was therefore not justified, and the defence based on the guarantee dispute was untenable. Case-Laws Indian Laws Fri, 21 Jul 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184745