Invocation or encashment of bank guarantee – HELD The settled position in law that emerges from the precedents of this Court is that the bank guarantee is an independent contract between bank and the beneficiary and the bank is always obliged to honour its guarantee as long as it is an unconditional and irrevocable one
SUPREME COURT OF INDIA DIVISION BENCH STANDARD CHARTERED BANK — Appellant Vs. HEAVY ENGINEERING CORPORATION LIMITED AND ANOTHER — Respondent ( Before : L. Nageswara Rao and Ajay Rastogi, JJ.…