Special Equities Archives

‘Special equities have to partake the character of irretrievable injustice’; Delhi HC quashes award by Arbitral Tribunal to injunct invocation of Bank Guarantees

‘The person at whose instance a Bank Guarantee has been issued by the bank is not a party to it and is merely a benefactor from whose account the payment would be realized.’

Case Briefs High Courts

Court cannot interfere with the enforcement of a bank guarantee except cases where fraud or special equity is prima facie made out so as to prevent irretrievable injustice: Delhi High Court

A Single Judge Bench of Chandra Dhari Singh, J. disposed of the petition and restrained from invoking/encashing the bank guarantee.

Op Eds OP. ED.

“Special Equities” in light of COVID-19 and its impact on invoking Bank Guarantees

by Jaideep Khanna*