Ansal Engg. Proj. Ltd. v. Tehri Hydro Development Corp. Ltd. & Anr. 1997 88 CompCas 149 SC (if no fraud involved, court has no role) FACTS: The petitioner/appellant (A) had undertaken to do some construction for the defendant/respondent(R) and as per the terms of the contract had furnished a bank guarantee (BG) for faithful performance…
Hindustan Steel Workers Construction (HS)[1] Ltd. v. G.S. Atwal & Co. (Engineers) Pvt. Ltd. (GS)[2] 1995 SCC (6) 76 (Unconditional Bank Guarantee, Performance Guarantee) FACTS HS and GS entered into contracts whereby GS was to construct 11 schools. The United Commercial Bank, Calcutta (Bank) gave two Bank Guarantees (BG1 &2) to HS on behalf…
State of Madhya Pradesh v. Kaluram 1967 SCR (1) 266 (Suretyship, Section 139 and 141 of Indian Contract Act, Subrogation) FACTS At an auction for sale of felled trees, Jagatram (J) was awarded the sale, on payment of a security and subsequent payment of installments. He executed a contract in favour of the Governor of…
Ramchandra B. Loyalka v. Shapurji N. Bhownagree (1940) 42 BOMLR 550 (Section 124, 126 and 145 of Indian Contract Act, Difference between Indemnity and Guarantee) FACTS: The plaintiff (P) was a sub-broker employed by the defendant broker (D) on 50% commission. P introduced 6 constituents and became answerable to the broker for them. The constituents…
National Highways Authority of India v. Ganga Enterprises and Anr. AIR 2003 SC 3823 (on demand performance guarantee) FACTS: Appellant (N) issued a tender notice for collection of toll on a part of a highway. For this purpose two types of securities were to be furnished, bank guarantee and performance security by way of a…
Amrit Lal Goverdhan Lalan v. State Bank of Travancore and Ors. 1968 SCR (3) 724 (ss.133, 135, 139 and 141 of Indian Contract Act, Suretyship, Subrogation) FACTS: Respondents 3 to 6, as partners of Respondent 2 firm (R2), entered into an agreement with a Bank (R1) to open a cash credit account to the extent…
Punjab National Bank Ltd. v. Bikram Cotton Mills & Anr. 1970 AIR 1973 (Difference between indemnity and guarantee) FACTS The first respondent company (R1) opened a cash-credit account with the appellant bank (A) and to secure repayment of the balance due at the foot of the account R1 executed three documents through its managing agents…
Radha Kanta Pal v. United Bank of India AIR 1955 Cal 217 (Section 139 of Indian Contract Act, Discharge, Rights of a surety) FACTS: The case concerns a contract in the nature of a fidelity bond or a guarantee. A (deceased) executed a security bond in favour of a Bank, B, in consideration of the…
Bank of Rajasthan v. Hajarimal Milap C. Surana FACTS: The respondents (R) (Hajarimal Milap C. Surana) were indebted to the appellants (A) (Bank of Rajasthan) and had deposited precious stones as security. For the recovery of the debt, a suit had been filed in the court by A. Pending the suit, the parties came to…
The Official Assignee of Madras v. The Mercantile Bank Of India Ltd. (1935) 37 BOMLR 130 FACTS: The Official Assignee of Madras has been assigned with the property of the insolvents CK Nayaran and sons. The insolvents had a big business of groundnuts. They were purchased from up-country and transported through railways to the madras…
Karnataka Pawn Brokers Assn. & Ors. Etc. (KP) v. State of Karnataka & Ors. etc. (constitutional validity of section 4-A and 4-B of Karnataka Pawn Brokers Act, 1961 and Sections 7-A and 7-B of Karnataka Moneylenders Act) FACTS: The Sales Tax Authorities of Karnataka and Tamil Nadu deemed the sale of unredeemed articles at the…
The Morvi Mercantile Bank Ltd. and Anr. v. Union of India 1965 AIR 1954 FACTS: A firm doing business in Bombay entrusted goods worth Rs.35500 with the Railway for delivery in Delhi. The goods were consigned to “self” and the firm endorsed the railway receipts to a Bank against an advance of Rs. 20,000 made…