Q: Write about the citation of Andhra Pradesh Pollution Control ... vs Ccl Products (India) Ltd. on 22 July, 2019 ?

Ans: Recently, in Andhra Pradesh Pollution Control Board Vs. CCL Products India Ltd, 2019, the honourable Supreme Court held that in absence of fraud, the court should not interfere with the invocation or encashment of  a bank guarantee so long as the invocation was in terms of bank guarantee.

The  Supreme Court held that unless fraud or special equity exists, is pleaded and prima facie established by strong evidence as a triable issue, the beneficiary cannot be restrained from encashing the bank guarantee even if dispute between the beneficiary and the person at whose instance the bank guarantee was given by the bank, had arisen in performance of the contract or execution of the works undertaken in furtherance thereof.



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