2017 (4) TMI 504

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....he Court : The unconditional bank guarantee invoked by a letter dated 6th December, 2016 is resisted in this application filed by the petitioner on the ground that in terms of the request made by the respondent to renew the bank guarantee upto 6th December, 2016, the bank guarantee was renewed. Although the petitioner disputes the liability towards service tax but surprisingly without any intimati....

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.... guarantee is well-settled and it does not require any reiteration that the bank is bound and obliged to remit the amount covered under the bank guarantee, if properly invoked, and is no way connected with the underlying contract between the petitioner and the respondent. Although the word 'fraud' has been mentioned in the petition but it is of no substance and lacks material particulars. The peti....

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....on which they have submitted earlier in favour of CIWTC together with an indemnity bond for any consequential payments towards penalty or otherwise which the CIWTC would be liable in the event of non-payment of Rs. 20.34 lakhs towards service tax within a week from date, failing which the bank shall be obliged to remit the said amount in favour of the respondent. The bank guarantee shall be initia....