Is invocation of the Bank Guarantee during the claim period valid invocation and binding on the Bank?

Last updated: 21 May 2021

Save Share

Quick Summary

The Cochin Port Trust (CPT) sought encashment of a Bank Guarantee from the Bank of India after a contractor, M/s. Shrikhande Consultants, failed to rectify defects in their work. The Bank refused, stating the guarantee period had expired, leaving only the claim period. CPT argued that invoking the guarantee during the claim period was valid and binding on the bank, as per the agreement's terms.

Court :
Kerala High court

Brief :
The petitioner�Cochin Port Trust is aggrieved by the refusal of the 1st respondent to encash Bank Guarantee and transfer the same to the petitioner. The petitioner also seeks to declare that invocation of the Bank Guarantee during the claim period is valid invocation and binding on the Bank.

Citation :
WP(C)/22760/2019

Daily Limit Reached