M.R in Bolivinter Oil SA v. Chase Manhattan Bank 1984 1 All ER 351, CA are apposite:
“… The wholly exceptional case where an injunction may be granted is where it is proved that the bank knows that any demand for payment already made or which may thereafter be made will clearly be fraudulent. But the evidence must be clear, both as to the fact of fraud and as to the bank's knowledge. It would certainly not normally be sufficient that this rests on the uncorroborated statement of the customer, for irreparable damage can be done to a bank's credit in the relatively brief time which must elapse between the granting of such an injunction and an application by the bank to have it discharged.”
The aforesaid passage was approved and followed in U.P Coop. Federation Ltd. v. Singh Consultants and Engineers (P) Ltd. 1988 1 SCC 174
.Dwarikesh Sugar Industries Ltd. v. Prem Heavy Engineering Works (P) Ltd., (1997) 6 SCC 450, 1997 PLRonline 0008
