https://www.taxtmi.com/caselaws?id=288603 Unconditional bank guarantees payable on demand operate as autonomous obligations, and the bank is not concerned with disputes between the beneficiary and the contractor. Courts should interfere only in exceptional cases of egregious fraud or irretrievable injustice; the mere pendency of arbitration, renewal of the guarantees, or earlier non-invocation during arbitration does not bar enforcement. On the facts stated, no material was shown to establish fraud or irretrievable harm, so restraint on encashment was not justified and invocation of the guarantees was permitted. en-us Mon, 08 May 1995 00:00:00 +0530 Thu, 18 Jun 2020 19:07:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=288603 Unconditional bank guarantees payable on demand operate as autonomous obligations, and the bank is not concerned with disputes between the beneficiary and the contractor. Courts should interfere only in exceptional cases of egregious fraud or irretrievable injustice; the mere pendency of arbitration, renewal of the guarantees, or earlier non-invocation during arbitration does not bar enforcement. On the facts stated, no material was shown to establish fraud or irretrievable harm, so restraint on encashment was not justified and invocation of the guarantees was permitted. Case-Laws Indian Laws Mon, 08 May 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=288603