PEERLESS GENERAL FINANCE & INVESTMENT CO. LTD Vs. PUNJAB & SINDH BANK
HIGH COURT OF DELHI
Peerless General Finance And Investment Co. Ltd
PUNJAB AND SINDH BANK
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SANJAY KISHAN KAUL,J. -
(1.) THE plaintiff filed the present suit under the provisions of Order xxxvII of the Code of Civil Procedure (for short, the 'said Code') for
the recovery of Rs. 5,92,98,176.57 which is stated to be due under ten
bank guarantees executed by the defendant bank in favor of the plaintiff
along with pendente lite and future interest @ 21 per cent per annum.
(2.) IT is averred that one Bhasin Associates (P) Ltd. (hereinafter referred to as Bhasin Associates), a company incorporated under the
Companies Act, 1956 was given a contract by M/s Larsen and Tubro Ltd. (
for short, 'L&T' ) for the execution of civil and structural work at
Chandrapur. Bhasin Associates is stated to have approached the plaintiff
for a loan of Rs. 4,00,00,000/-. It is claimed that Bhasin Associates
were asked to get guarantees from a 'respectable' bank for the
consideration of their request. On 29.09.1988, ten guarantees are stated
to have been issued by the defendant of Rs. 40 Lakhs each, the details of
which are as under:
Number Date of expiry extended on extended till, 1 24/90119/88 28.06.89 21.07.89 28.12.91 2 24/90120/88 28.09.89 19.10.89 28.03.92 3 24/90121/88 28.12.89 19.10.89 28.06.92 4 24/90122/88 28.03.90 5 24/90123/88 28.06.90 6 24/90124/88 28.09.90 7 24/90125/88 28.12.90 8 24/90126/88 28.03.91 9 24/90127/88 28.06.91 10 24/90128/88 28.09.91
The terms of the bank guarantees are stated to be similar. The guarantees having been received, the plaintiff claims to have advanced a
sum of Rs. 4,00,00,000/- to Bhasin Associates.
(3.) THE plaintiff claims that after paying a sum of Rs. 54,10,000/- on various dates in 1989. No other amounts were paid to the plaintiff. Thus,
bank guarantee no. 24/90122/88 was invoked vide letter dated 27.03.1990.
It is alleged that the defendant delayed payment and ultimately failed to
pay. The other bank guarantees are also stated to have been invoked but
payment was allegedly not made.;
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