https://www.taxtmi.com/article/detailed?id=10145 Courts generally decline to grant injunctions restraining encashment of unconditional bank guarantees or letters of credit; banks must honor guarantees according to their terms irrespective of disputes between underlying parties. Judicial restraint applies except in two narrow exceptions: proven fraud connected with the guarantee, or exceptional, irretrievable harm or injustice that outweighs commercial prejudice. Applicants for injunctions must show a strong prima facie case, special equities, and that the balance of convenience favors restraint; mere contractual disputes do not suffice to restrain enforcement. en-us Tue, 28 Dec 2021 10:59:40 +0530 Tue, 28 Dec 2021 10:59:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=10145 Courts generally decline to grant injunctions restraining encashment of unconditional bank guarantees or letters of credit; banks must honor guarantees according to their terms irrespective of disputes between underlying parties. Judicial restraint applies except in two narrow exceptions: proven fraud connected with the guarantee, or exceptional, irretrievable harm or injustice that outweighs commercial prejudice. Applicants for injunctions must show a strong prima facie case, special equities, and that the balance of convenience favors restraint; mere contractual disputes do not suffice to restrain enforcement. Articles Other Topics Tue, 28 Dec 2021 10:59:40 +0530 https://www.taxtmi.com/article/detailed?id=10145