Q: Write about the citation of Himadri Chemicals Industries Ltd vs Coal Tar Refining Company on 7 August, 2007 ?

Ans: 

Himadri Chemicals Industries Ltd vs Coal Tar Refining Company on 7 August, 2007

The Supreme Court in HIMADRI CHEMICALS INDUSTRIES LTD VERSUS COAL TAR REFINING COMPANY [2007 (8) TMI 704 - SUPREME COURT] lays down the following principles in the matter of injunction to restrain the encashment of bank guarantee as below: 

While dealing with an application for injunction in the course of commercial dealings, and when an unconditional bank guarantee or letter of credit is given or accepted, the beneficiary is entitled to realize such a bank guarantee or a letter of credit in terms thereof irrespective of any pending disputes relating to the terms of the contract.
The bank giving such guarantee is bound to honor it as per its terms irrespective of any dispute raised by its customer.
The courts should be slow in granting an order of injunction to restrain the realization of a bank guarantee or a letter of credit. 
Since a bank guarantee or letter of credit is an independent and separate contract and is absolute in nature,  the existence of any dispute between the parties to contract is not a ground for issuing an order of injunction to restrain enforcement of bank guarantees or letters of credit.
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