Performance Security Bank Guarantee being unconditional absolute, and petitioners having failed to make out an exceptional case of special equity, the Bank Guarantee cannot be interdicted under Section 9 of the Arbitration & Conciliation Act, 1996 – M/s Mantena Vsishta Bridge JV & Ors. Vs. National Highways and Infrastructure Development Corporation Ltd. & anr – Delhi High Court

Hon’ble High Court referred various judgments and held that law relating to grant or refusal of injunction to restrain enforcement of a bank guarantee is well settled. The person seeking injunction is required to establish a prima facie case of fraud and special equities in the form of preventing irretrievable injustice between the parties. As such, a bank guarantee can be interdicted only in exceptional cases of egregious fraud, irretrievable injustice or special equities. In the totality of facts, this Court is of the considered opinion that the Performance Security Bank Guarantee being unconditional absolute, and petitioners having failed to make out an exceptional case of special equity, the Bank Guarantee cannot be interdicted.

Scroll to Top