Bank guarantee – An injunction was granted where the bank guarantee which was issued was to be kept alive till the successful completion of trial operations. Court found that the guarantee which had been given by the Bank was to enure only till the successful completion of the trial operations and the taking over of the plant. The documents revealed that the contractual term in this regard has been complied with and after successful completion of the trial operation, the plant had admittedly been taken over. In view of this, it was held that the terms of the bank guarantee did not permit its invocation once the trial operations had been successfully completed – Injunction – interlocutory injunction.
.Larsen & Toubro Limited v. Maharashtra State Electricity Board, 1995 6 SCC 68, 1995 PLRonline 0004,
