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Head Note

The Code of Civil Procedure, 1908  - Order XXXIX Rule (1) ,  Rule (2)

Bank Guarantee - Injunction against Invocation -Contention on behalf of the appellant that the communication dated 14.01.2024 relied upon by respondent No.1 in its defence, is a fabricated and doctored document, which was never executed by the appellant - Veracity or truthfulness of the defence raised by respondent No.1shall emerge only on the culmination of the proceedings initiated by respondent No.1 before the Civil Court - Keeping in mind the terms and conditions, more particularly of the contractual conditions and unconditional nature of Bank Guarantee the courts below were not justified in injuncting the invocation of the three bank guarantees, executed by the State Bank of Mysore, at the instance of respondent - Respondent Nos.2 and 3 the State Bank of Mysore directed to honour the same forthwith - Made clear that in case the statement made to this Court on behalf of the appellant is not found to be correct, on the culmination of the proceedings initiated by respondent No.1, it shall be open to respondent No.1 to initiate civil and criminal proceedings against the appellant, as may be permissible in accordance with law.

Topic(s)-Bank Guarantee - Injunction against Invocation - Injunction set aside