Injunction – Interlocutory injunction – Bank Guarantee – The letter of invocation demanding the payment was in accordance with the terms of Bank Guarantee and the Bank was, therefore, under an obligation to honour its undertaking and to make the payment – It, however, chose not to fulfil its obligation – If the Bank could not in law avoid the payment, as the demand had been made in terms of the bank guarantee, as has been done in the present case, then the court ought not to have issued an injunction which had the effect of restraining the Bank from fulfilling its contractual obligation in terms of the bank guarantee – An injunction of the court ought not to be an instrument which is used in nullifying the terms of a contract, agreement or undertaking which is lawfully enforceable.
.Dwarikesh Sugar Industries Ltd. v. Prem Heavy Engineering Works (P) Ltd., (1997) 6 SCC 450, 1997 PLRonline 0008
