Allahabad High Court reiterates law on interdicting unconditional bank guarantee; Sets aside interim injunction order passed by Commercial Court
Fraud, as an exception to the rule of non-interference with encashment of bank guarantees, is not any fraud, but a fraud of an egregious nature, going to the root i.e., to the foundation of the bank guarantee and an established fraud. The entire case of the respondent fails to qualify for this.