https://www.taxtmi.com/caselaws?id=306628 A bank guarantee must ordinarily be honoured according to its terms, and court interference is justified only in exceptional cases of prima facie fraud or irretrievable injustice. Here, the plaintiff accepted the contract, sought repeated extensions, and its own communications showed inability to perform within the extended period. The record did not establish fraudulent or discriminatory invocation of the guarantee, and no irretrievable injury was shown. As the guarantee expressly permitted payment on the seller's failure to perform, the defendant's demand was consistent with its terms and interim restraint on encashment was not warranted. en-us Thu, 14 Dec 1995 00:00:00 +0530 Wed, 15 Feb 2023 15:23:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=306628 A bank guarantee must ordinarily be honoured according to its terms, and court interference is justified only in exceptional cases of prima facie fraud or irretrievable injustice. Here, the plaintiff accepted the contract, sought repeated extensions, and its own communications showed inability to perform within the extended period. The record did not establish fraudulent or discriminatory invocation of the guarantee, and no irretrievable injury was shown. As the guarantee expressly permitted payment on the seller's failure to perform, the defendant's demand was consistent with its terms and interim restraint on encashment was not warranted. Case-Laws Indian Laws Thu, 14 Dec 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=306628