UNION OF INDIA & ANR. Vs. M/S INDUSIND BANK LTD. & ANR.
SUPREME COURT OF INDIA
Union of India and Anr.
M/S Indusind Bank Ltd. And Anr.
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R.F.NARIMAN, J. -
(1.) Leave granted.
(2.) The present appeals by the Union of India raise an interesting question as to the applicability of the 1997
Amendment to Section 28 of the Contract Act, 1872. The facts
of the three appeals are similar inasmuch as they concern four
exporters who belong to what is known as the GPB Group of
(3.) By a Memorandum dated 6.11.1995, issued by the Textile Commissioner under the Imports and Exports (Control) Act,
1947, terms and conditions for export of raw cotton and cotton waste for September, 1995 - August, 1996 were laid down. The
shipment was permitted only against an irrevocable letter of
credit. The exporters were required to furnish a bank guarantee
in the prescribed form at the rate of 10% of the contract price.
The bank guarantee was required to be kept valid up to 6
months with a provision for claims for an additional three
months, after the last date of shipment. The allocation of quota
was on the basis of the highest unit value realization.;
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