https://www.taxtmi.com/caselaws?id=287712 Territorial jurisdiction to restrain invocation of a performance bank guarantee depends on where the relevant cause of action arises under the underlying commercial arrangement and the guarantee documents. A bank guarantee operates as an independent contract, so a collateral arrangement or mere issuance of a counter-guarantee at Delhi did not create jurisdiction where the documents conferred exclusive foreign forum jurisdiction. The Court also noted that an exclusive jurisdiction clause can be effective even without the word "only" if contractual intention is clear, and allegations of fraud, hardship, or limited time did not override that bar. The plaint was therefore to be returned for presentation before the competent court. en-us Tue, 19 Sep 2017 00:00:00 +0530 Tue, 28 Apr 2020 22:54:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=287712 Territorial jurisdiction to restrain invocation of a performance bank guarantee depends on where the relevant cause of action arises under the underlying commercial arrangement and the guarantee documents. A bank guarantee operates as an independent contract, so a collateral arrangement or mere issuance of a counter-guarantee at Delhi did not create jurisdiction where the documents conferred exclusive foreign forum jurisdiction. The Court also noted that an exclusive jurisdiction clause can be effective even without the word "only" if contractual intention is clear, and allegations of fraud, hardship, or limited time did not override that bar. The plaint was therefore to be returned for presentation before the competent court. Case-Laws Indian Laws Tue, 19 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=287712