CM No.3515/2015
1. The appellant had preferred a petition under Section 9 of the Arbitration and Conciliation Act 1996 seeking to restrain the respondent from invoking a bank guarantee furnished at the instance of the appellant beneficiary whereof was the respondent. The guarantee was a Warrantee Bank Guarantee No.SBI/GAUR/1460 dated March 28, 2002. The guarantee was issued by the applicant (State Bank of India) at the instance of the appellant and was secured by a counter guarantee No.821020002584 issued by ABSA Bank South Africa.
2. Since the applicant bank had honoured its obligation under the bank guarantee issued by it to the respondent, when the bank guarantee was invoked, it issued a demand draft in the name of the respondent in sum of US $11,97,930. The learned Single Judge did not grant the relief prayed for by the appellant. FAO (OS) No.241/2010 was filed laying a challenge to the order dated March 22, 2010.