AIR 2020 (NOC) 250 (DEL.) ::2019 (5) ADR 74 ::AIROnline 2019 Del 880 ::(2019) 4 ArbiLR 326

Delhi High Court

Hon'ble Judge(s): Sanjeev Narula , J

Contract Act (9 of 1872) , S.126— Arbitration and Conciliation Act (26 of 1996) , S.9— Bank guarantee - Invocation of - Works contract - Delay in completion of contract - Respondent invoking Contract Performance Bank Guarantee - Plea that invocation of Bank Guarantee is fraudulent, as Petitioner has completed the contract - Petitioner failed to plead and produce any cogent evidence in proof of fraud - It is not a function of Bank nor of High Court to enquire as to whether due performance had actually happened when, under terms of unconditional Bank Guarantee, Bank is obliged to make payment when guarantee was invoked , irrespective of any contractual dispute between Petitioner and Respondent - Since respondent had lodged its claims under Bank Guarantee, there is no occasion for court to issue directions to respondent to make deposits of Petitioner's alleged claims. (Para 16 21) .....