In Brief
Standard Chartered Bank appealed against a Division Bench order in a suit by Heavy Engineering Corporation Ltd. seeking recovery on invoked bank guarantees. The Court upheld the lower court's finding that the bank guarantees were properly invoked in accordance with their terms. The Supreme Court held that once a demand for payment is made in compliance with the bank guarantee's terms, the bank cannot question the justification for invocation unless exceptional circumstances like fraud or irretrievable injustice apply. Finding no such exceptions, the Court dismissed the appeal and directed the High Court Registry to release the money and the bank to satisfy the decree.
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