Q: Delineate the citation of Vinitec Electronics Private limited vs Hcl Infosystems Limited on 2 November, 2007 ?

Ans: Vinitec Electronics Private limited vs Hcl Infosystems Limited on 2 November, 2007.
In the case of Vinitec Electronics Ltd. vs HCL Infosystem Ltd., the honourable Supreme court  clarified that the operative part of the contract will not be controlled by the preamble of the guarantee contract. 
The honourable Supreme Court held that: 
In our considered opinion such vague and indefinite allegations made do not satisfy the requirement in law constituting any fraud much less the fraud of an egregious nature as to vitiate the entire transaction. The case, therefore does not fall within the first exception.
The recitals in the preamble in the deed of guarantee do not control the operative part of the deed. After careful analysis of the terms of the guarantee we find the guarantee to be an unconditional one. The appellant, therefore, cannot be allowed to raise any dispute and prevent the respondent from encashing the bank guarantee.
Whether encashment of the bank guarantee would cause any irretrievable injury or irretrievable injustice. There is no plea of any special equities by the appellant in its favour. So far as the plea of irretrievable injustice is concerned the appellant in its petition merely stated:
That should the respondent be successful in implementing its evil design, the same would not only amount to fraud, cause irretrievable injustice to the applicant, and render the arbitration nugatory and infructuous but would permit the respondent to take an unfair advantage of their own wrong at the cost and extreme prejudice of the applicant.
 The plea taken as regards irretrievable injustice is again vague and not supported by any evidence.
There is no dispute that arbitral proceedings are pending. The appellant can always get the relief provided he makes his case before the Arbitral Tribunal. There is no allegation that it would be difficult to realize the amounts from the respondent in case the appellant succeeds before the Arbitral Tribunal.
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