2024 (9) TMI 1043

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.... refund of the bank guarantee amount of Rs.26,86,000/- (Rupees Twenty Six Lakhs and Eighty Six Thousand Only) was rejected. During the pendency of this appeal, an application has been filed being IA No.150349/2023 seeking a direction to discontinue the bank guarantee maintained with the Prothonotary of the Bombay High Court pursuant to order dated 11.11.2002 passed by this Court in C.A. No.7199/2002 which is for about twenty two years. Learned senior counsel, Mr. Gaurav Agrawal, appearing for the appellant drew our attention to the fact that by order dated 11.11.2002, this Court in C.A. No.7199/2002 arising out of SLP(C) No.19883/2002 [Union of India and Anr. vs. M/s Nucleus Securities Ltd.] had disposed of the aforesaid appeal by directi....

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....2006 and reiterated in order dated 20th October, 2022, of the Hon'ble High Court in Reference Application No.28 of 2001. Dated this the 30th day of January, 2023." Having regard to the aforesaid, he submitted that when no statement of case has been made before the High Court as such, the retaining of the bank guarantee is not in accordance with law and has caused prejudice to the appellant herein. He, therefore, submitted that the impugned order may be set aside and the prayer(s) made be granted. Per contra, learned senior counsel for the respondents submitted that having regard to the order passed by this Court on 11.11.2002 and in compliance thereof, the appellant herein had issued the bank guarantee; that the order dated 30.01.2023....

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....n litigation, been deprived of a huge amount which is a subject of the bank guarantee. In the circumstances, we set aside that portion of the impugned order and permit the appellant herein to discontinue the bank guarantee and direct refund of the said amount of the guarantee. The respondent-Union of India shall cooperate in that regard. It is needless to observe that the same is subject to the decision of the High Court to be made on the order dated 30.01.2023 submitted by the CESTAT, West Zone Bench (WZB), Mumbai. The High Court shall consider the same as expeditiously as possible. Since the bank guarantee is permitted to be discontinued, the appellant to file an Affidavit of Undertaking before the High Court within a period of two week....