https://www.taxtmi.com/caselaws?id=297946 A bank guarantee is an independent contract between the bank and the beneficiary, so its invocation must be honoured according to its terms and cannot be restrained merely because a dispute exists in the underlying transaction. Judicial or tribunal interference is justified only if fraud, irretrievable injustice, or special equities is shown. On the facts, the demand under the guarantees was required to be honoured on invocation, and the bank was not concerned with the underlying compliance dispute. The Tribunal was therefore not justified in setting aside the invocation or directing refund, and the invocation was held valid. en-us Mon, 22 Jul 2019 00:00:00 +0530 Fri, 01 Oct 2021 08:32:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=297946 A bank guarantee is an independent contract between the bank and the beneficiary, so its invocation must be honoured according to its terms and cannot be restrained merely because a dispute exists in the underlying transaction. Judicial or tribunal interference is justified only if fraud, irretrievable injustice, or special equities is shown. On the facts, the demand under the guarantees was required to be honoured on invocation, and the bank was not concerned with the underlying compliance dispute. The Tribunal was therefore not justified in setting aside the invocation or directing refund, and the invocation was held valid. Case-Laws Indian Laws Mon, 22 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=297946