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SANKALP JAIN*
Abstract
The
paper
examines
the
nature
and
scope
of
bank
guarantee
system
and
letter
of
credit
in
India.
This
paper
is
a
doctrinal
study
which
covers
the
law
relating
to
the
bank
guarantees
particularly
embodied
in
the
Indian
Contract
Act
1872,
highlights
the
economic
functions
and
benefits
of
the
bank,
explains
the
various
types
of
guarantees
issued
by
the
banks
in
India.
This
paper
further
discusses
the
nature,
scope,
details,
structure
and
troubles
of
a
letter
of
credit.
It
highlights
the
imbalance
of
the
rights
and
duties
of
the
parties
in
a
letter
of
credit
transaction
by
emphasising
deficiencies
in
the
letters
of
credit
system.
It
discusses
how
the
risk
of
the
innocent
buyer
has
increased
and
very
often
the
buyer
is
paying
for
the
goods
he
had
not
contracted
for
and
also
throws
light
on
the
independence
principle
and
the
doctrine
of
documentary
compliance.
BANK
GUARANTEE:
AN
INTRODUCTION
A
bank
guarantee
is
a
commercial
document.
It
is
a
contract
between
the
issuing
bank
and
the
beneficiary
in
whose
favour
the
guarantee
has
been
furnished.
It
is
an
act
of
trust
to
facilitate
the
fine
flow
of
trade
and
commerce
in
internal
and
international
trade
or
business.
Even
though
the
genesis
of
a
bank
guarantee
lies
in
the
primary
contract
between
the
parties,
it
is
nevertheless,
autonomous
and
independent.
Though
the
bank
guarantee
may
have
been
issued
by
the
Banker
at
the
instance
of
his
client,
it
is
a
contract
between
the
banker
and
the
beneficiary
in
whose
favour
such
bank
guarantee
has
been
issued.
The
party
at
whose
instance
the
guarantee
has
been
furnished
is,
in
a
way,
a
stranger
to
the
contract
of
bank
guarantee.
In
a
bank
guarantee,
the
bank
binds
itself
to
pay
unconditionally
and
unequivocally
without
protest
or
demur
or
performance
by
the
principal
debtor.1
The
bank
issuing
the
guarantee
is
not
concerned
with
the
relationship
between
the
seller
and
the
*
Email:
sankalp_jain11@yahoo.com
1
Mohd
Yasin
Wani
&
Rais
Ahmad
Qazi,
“A
Legal
Perspective
of
Bank
Guarantee
System
in
India”
available
at:
ijrcm.org.in/download.php?name=ijrcm-‐1-‐vol-‐3
(visited
on
October
27,
2012).
3
Halsbury’s
Laws
of
England,
“Guarantee
and
Indemnity”
(4th
edn.,
Reissue,
Vol.
20,
para
101).
BENEFITS
OF
BANK
GUARANTEE
Bank
guarantee
benefits
both
the
Government
as
well
as
the
private
sector.
For
the
Government,
the
bank
guarantee:
a) increases
the
rate
of
private
financing
for
key
sectors
such
as
infrastructure,
b) provides
access
to
capital
markets
as
well
as
commercial
banks.
c) Reduces
cost
of
private
financing
to
affordable
levels.
d) Reduces
government
risk
explore
by
passing
commercial
risk
to
the
private
sector.
For
private
sector,
the
bank
guarantee:
a) Reduces
risk
of
private
transactions
in
emerging
countries.
b) Mitigates
risks
that
the
private
sector
does
not
control.
c) Opens
new
markets.
d) Improves
project
sustainability.
BANK
GUARANTEE
SYSTEM
IN
INDIA:
LEGAL
PERSPECTIVES
In
England
there
is
no
statutory
law
governing
bank
guarantees.
The
English
courts
content
state
that
the
banks
should
be
left
free
to
perform
their
obligations
under
the
agreements
of
bank
guarantees.
However,
in
India,
the
courts
have
to
keep
in
view
the
provisions
of
the
Indian
Contract
Act
applicable
to
bank
guarantees.
The
provisions
of
the
Act
have
to
be
read
into
each
contract
of
bank
guarantee.
Bank
guarantees
lead
to
invoking
the
payment
only
in
case
of
default
by
the
supplier/
contractor.
Bank
guarantees,
therefore,
figure
as
contingent
liability
in
the
accounts
of
a
bank
furnishing
it
and
the
supplier/contractor
on
whose
behalf
it
has
been
furnished.
Bank
guarantees
should
be
unconditional
guarantees
by
the
bank
to
the
beneficiary
undertaking
to
pay
the
sum
specified
in
the
guarantee
on
demand.
It
is
a
well
established
law
that
when
a
bank
guarantee
is
given
by
bank
to
the
beneficiary,
a
contract
comes
into
being
between
the
bank
and
the
beneficiary,
independent
of
the
main
contract
between
the
buyer
/principal
and
the
supplier/contractor.
Thus,
two
contracts
and
three
parties
come
into
existence
when
a
contract
is
entered
into
which
provides
for
bank
guarantees
being
furnished.
A
bank
has
to
honour
its
undertaking
when
the
guarantee
is
invoked,
without
reference
to
the
party
on
whose
behalf
it
has
been
issued,
notwithstanding
any
disputes
or
disagreements
that
might
have
arisen
in
the
mean
time
between
the
buyer/principal
and
the
supplier/contractor.
The
right
of
the
beneficiary
under
a
bank
guarantee
is
governed
by
the
bank
guarantee
itself
and
not
by
the
terms
and
conditions
of
the
original
contract.
The
bank
guarantee
is
a
contract
separate
from
the
original
contract.
I
shall
now
sum
up
the
general
principles
as
evolved
from
the
decisions
of
the
Supreme
Court
as
follows:
1. A
bank
guarantee
is
ordinarily
a
bipartite
contract
between
the
issuing
bank
and
the
beneficiary
quite
distinct
and
independent
of
the
underlying
contract,
the
performance
of
which
it
seeks
to
secure.
To
that
extent,
it
can
be
said
to
give
rise
to
a
cause
of
action
separate
from
that
of
underlying
contract.
If
the
document
of
Guarantee
is
in
order,
the
Bank
giving
the
Guarantee
must
honour
the
same
to
make
payment.
2. The
commitments
of
the
banks
under
a
bank
guarantee
must
be
honoured
and
the
court
should
not
interfere
by
granting
injunction
to
restrain
the
performance
of
the
contractual
obligations
arising
out
of
bank
guarantee.
The
contract
of
guarantee
is
a
contract
which
the
bank
has
undertaken
to
unconditionally
and
unequivocally
abide
by
the
terms
of
the
contract.
It
is
an
act
of
trust
with
full
faith
to
facilitate
free
flow
of
trade
and
commerce
in
internal
or
international
trade
or
business.
3. The
issuing
bank
is
bound
to
observe
and
honour
the
terms
of
guarantee.
The
beneficiary
of
a
bank
guarantee
cannot
be
restrained
from
invoking
the
bank
guarantee
and
the
issuing
bank
cannot
be
injuncted
from
paying
over
the
proceeds
of
the
bank
guarantee,
except
in
the
case
of
fraud
which
violates
the
entire
underlying
transaction
or
in
a
case
where
irretrievable
injustice
would
be
caused
by
the
invocation
or
the
encashment
of
the
bank
guarantee.
The
existence
of
any
dispute
between
the
parties
to
the
contract
is
not
a
ground
for
issuing
an
injunction
to
restrain
enforcement
of
bank
guarantee.
But
that
does
not
mean
that
the
parties
to
the
underlying
contract
cannot
settle
a
dispute
with
respect
to
allegation
of
breach
by
resorting
or
litigation
or
arbitration
as
stipulated
in
the
contract.
THE
SCOPE
AND
LIMITS
OF
JUDICIAL
INTERFERENCE
It
is
a
settled
law
that
a
contract
of
guarantee
is
a
complete
and
separate
contract
by
itself.
The
law
regarding
enforcement
of
an
on
demand
bank
guarantee
is
very
clear.
If
the
enforcement
is
in
terms
of
the
guarantee,
then
the
courts
must
not
interfere
with
the
enforcement
of
bank
guarantee.
The
court
can
only
interfere
if
the
innovation
of
on
demand
guarantee
is
in
accordance
with
its
terms
by
looking
at
terms
of
the
underlying
contract.
The
courts
have
observed
in
numerous
cases
that
the
liability
of
the
bank
under
the
guarantee
is
absolute
and
they
would
not
generally
interfere
with
the
contractual
obligations
of
the
banker
by
issuing
any
injunction
against
the
payment
when
the
guarantee
is
validity
invoked.
In
enunciating
the
general
principle
of
non-‐intervention
by
the
courts
in
respect
of
the
guarantees
and
letter
of
credit
the
courts
intend
that
trade
and
commerce
should
function
smoothly
without
interference
from
the
judiciary.
The
existence
of
any
dispute
between
the
parties
to
the
Contract
is
not
a
ground
for
issuing
an
injunction
to
restrain
enforcement
of
Bank
Guarantee.
But
that
does
not
mean
that
the
parties
to
the
underlying
contract
cannot
settle
a
dispute
with
respect
to
allegation
of
breach
by
resorting
or
litigation
or
arbitration
as
stipulated
in
the
contract.
EXCEPTIONS
Payment
under
a
bank
guarantee
may
be
refused
or
restrained:
1. Where
the
bank
knows
that
the
documents
presented
by
the
beneficiary
for
seeking
enforcement
are
forged
or
fraudulent.4
2. Where
a
fraud
by
one
of
the
parties
to
the
underlying
contract
has
been
established
and
the
bank
has
notice
of
the
fraud.5
4
(1984)
1
All
ER
351,
United
City
Merchants
(Investments)
Ltd.
v.
Royal
Bank
of
Canada
(1982)
2
All
ER
720.
5
Bolivinter
Oil
SA
v.
chase
Manhattan
Bank
(1984)
1
All
ER
351:
(1984)
1
WLR
392.
3. Where
a
case
of
apprehension
of
Irretrievable
Injustice
is
made
out.
4. Where
the
guarantee
is
conditional
and
the
condition
has
not
been
complied
with.6
5. Where
the
conditions
necessary
for
invoking
a
conditional
bank
guarantee
have
not
arisen.7
6. Where
the
purpose
for
which
a
conditional
guarantee
was
given
has
been
accomplished.8
7. Where
the
period
stipulated
for
innovation
of
the
guarantee
has
expired.9
8. In
BSES
Ltd.
(Now
Reliance
Energy
Ltd.)
v.
Fanner
India
Ltd.
10
it
was
held
that
as
a
general
rule
that
a
bank
guarantee
must
be
honoured
in
accordance
with
its
terms
there
are
however,
two
exceptions:
The
first
is
when
there
is
clear
fraud
of
which
the
bank
has
notice
and
a
fraud
of
the
beneficiary
from
which
it
seeks
the
benefit.
The
fraud
must
be
of
an
egregious
nature
as
to
vitiate
the
entire
underlying
transaction.
The
second
exception
to
the
general
rule
of
non-‐intervention
is
when
there
are
special
equities
in
favour
of
injunction
such
as
when
irretrievable
injury
or
irretrievable
injustice
would
occur
if
such
an
injunction
were
not
granted.
LETTER
OF
CREDIT:
AN
INTRODUCTION
A
letter
of
credit
is
a
promise
to
pay. 11
While
the
letter
of
credit
has
been
in
use
for
centuries,
the
modern
letter
of
credit
is
so
far
different
as
to
be
practically
a
new
6
Banwari
Lal
Radhe
Mohan
v.
Punjab
State
Co-‐op
Supply
and
Marketing
Federation
Ltd.
AIR
1982
Del
357
Banerjee
and
Banerjee
v
Hindustan
Steel
Works.
7
Basic
Tele
Services
Ltd.
v.
Union
of
India
AIR
2000
Del
1
(bank
guarantee
given
to
cover
withdrawal
of
bid
by
a
bidden
during
period
of
validity
of
bid
could
not
be
invoked
where
the
bidder
never
withdraw
the
bid.
Kirloskar
Pnlumatic
Co.
Ltd.
v.
National
Thermal
Power
Corpn
Ltd.
AIR
1987
Bom.
308.
8
Larsen
and
Toubro
Ltd.
v.
Muharasthra
State
Electricity
Board
AIR
1996
SC,
334
(1995)
6
SCC
68.
9
Makharia
Bros
v.
State
of
Nagaland
AIR
1999
SC,
3466
(2000)
10
SCC
503.
10
AIR
2006
SC
1148;
(2006)
130
Comp
Cas
8
(SC).
instrument.12
The
use
of
new
forms,
together
with
the
more
varied
and
complex
situations
in
which
they
occur
at
present,
has
given
rise
to
many
new
legal
problems.
The
early
letter
of
credit
was
usually
given
by
a
principal
to
his
agent,
for
use
in
purchasing
goods
abroad.13
The
reasons
for
this
were
twofold.
In
the
first
place,
the
international
worldwide
banks
of
to-‐day
did
not
exist.
In
addition,
the
firms
doing
international
trade
were
so
few
and
so
well-‐
known,
that
the
promise
contained
in
their
own
letter
of
credit
was
considered
sufficient
security
for
the
sale
of
goods
on
credit,
and
the
functions
of
the
letter
were
chiefly
to
authenticate
the
power
of
the
agent.14
It
was
generally
addressed
to
a
correspondent
bank
on
which
the
drafts
were
to
be
drawn
and
requested
the
bank
to
pay
such
drafts
as
were
drawn
by
the
agent.15
With
the
rising
importance
and
increasing
complexity
of
this
trade
and
the
entrance
of
new
firms
into
the
field,
the
letter
of
credit
became
a
necessity
and
took
on
other
aspects.
As
a
result
of
this
development,
the
law
has
been
faced
with
a
new
set
of
legal
problems,
solutions
of
which
has
become
more
and
more
imperative
with
the
increasing
use
of
the
letter
of
credit.
1. The
performance
of
conditions
under
the
letter
of
credit;
2. The
legal
relation
between
the
letter
of
credit,
the
sales
contract
in
performance
of
which
the
credit
is
procured
and
the
agreement
to
indemnify
the
bank
that
is
signed
by
the
buyer
in
order
to
procure
the
credit;
and
3. The
legal
basis
of
the
right
of
a
beneficiary
to
recover
under
an
irrevocable
letter
of
credit.16
11
Justin
Pritchart,
“Letter
of
Credit-‐
How
Letters
of
Credit
Work”
available
at:
http://banking.about.com/od/businessbanking/a/letterofcredit.htm
(visited
on
August
30,
2012).
12
Herman
N.
Finkelstein
“Performance
of
conditions
under
a
letter
of
credit”
25
Colum.
L.
Rev.
724
(1925)
available
at:
http:/heinonline,org
(visited
on
August
27,
2012).
13
Ibid.
14
Ibid.
15
Ibid
16
Ibid.
Their
purpose
is
to
insure
to
a
seller
payment
of
a
definite
amount
upon
presentation
of
documents.
The
bank
deals
only
with
documents.
It
has
nothing
to
do
with
the
quality
of
the
merchandise.
Disputes
as
to
the
merchandise
shipped
may
arise
and
be
litigated
later
between
vendor
and
vendee
but
they
may
not
impede
acceptance
of
drafts
and
payment
by
the
issuing
bank
when
the
proper
documents
are
presented.
The
bank
was
absolutely
bound
to
make
payment
under
the
letter
even
if
it
had
known
or
had
reason
to
believe
that
the
sugar
was
not
of
the
quality
contracted
for.
17
NATURE
AND
FUNCTION
OF
LETTER
OF
CREDIT
A
letter
of
credit
is
neither
a
negotiable
instrument
nor
a
guaranty.
The
letter
of
credit
has
an
immediate
legal
effect.
Unlike
the
guaranty
letter,
which
promises
to
answer
for
the
debt,
default
or
miscarriage
of
another,
the
issuer
of
a
letter
of
credit
is
primarily
liable
upon
it.
The
beneficiary
does
not
need
to
look
anywhere
else
than
to
the
issuer
for
the
performance.
This
letter
of
credit
authorizes
the
beneficiary
to
whom
it
is
addressed
to
advance
money
or
furnish
goods
or
to
enter
into
some
obligation
based
fully
upon
the
credit
of
the
writer
of
the
letter.
Common
to
every
letter
of
credit
transaction
is
the
contract
that
exists
between
the
buyer
and
the
seller,
the
buyer
and
his
bank,
and
the
bank
and
the
seller.
18
The
issuing
bank
replaces
the
bank's
customer
as
the
payee.
Letters
of
credit
used
in
international
transactions
are
governed
by
the
International
Chamber
of
Commerce
Uniform
Customs
and
Practice
for
Documentary
Credits
(UCP).
PARTIES
TO
LETTER
OF
CREDIT
Following
persons
are
generally
parties
to
a
letter
of
credit:
1. Beneficiary:
The
exporter
of
goods
in
whose
favour
the
L/C
has
been
established.
2. Customer/importer:
The
person
we
intends
to
import
the
goods
and
instructs
bank
to
established
Letter
of
Credit.
17
“
Letters
of
Credit”
14
Bus.
L.J.
408
July-‐December
1929
available
at
:
http://heinonline.org
(visited
on
August
27,
2012).
18
Alphonse
M.
Squillante,
“Letter
of
Credit:
A
Discourse
Part
11”
84
Com.
L.J.
426
1979
available
at:
http://heinonline.org
(visited
on
August
27,
2012).
3. Issuing
Bank:
The
banker
in
the
importers
Country
who
opened
the
L/C.
4. Correspondent
Bank
or
Advising
Bank:
The
banker
in
the
exporters
country,
who
is
authorised
by
the
issuing
bank
to
advise
the
beneficiary
of
the
credit
and
to
effect
such
payment
or
to
accept
and
pay
such
bills
of
exchange
or
to
negotiate
against
stipulated
documents
and
on
compliance
of
stipulated
terms
and
condition
specified
by
the
importer
on
the
exporter.
5. Confirming
Bank:
The
banker
in
the
exporters
(beneficiary)
country,
who
at
the
desire
of
the
beneficiary
adds
confirmation
to
the
letter
of
Credit
so
that
beneficiary
can
get
payment
without
recourse
from
the
confirming
bank.
The
confirming
bank
may
be
correspondent
bank
itself
or
some
other
bank.
TYPES
OF
LETTER
OF
CREDIT
Generally
following
types
of
Letter
of
Credit
are
in
operation:
• Revocable
or
Irrevocable
Letters
of
Credit.
• Confirmed
Credit.
• Transferable
Credit.
• With
or
without
Recourse
Credit.
• Revolving
Letter
of
Credit.
• Transit
Credit.
• Back
to
Back
Credit.
•
The
Sight
Credit.
• The
Credit
available
against
Time
Draft
(Usance
Credit).
• The
Deferred
Payment
Credit.
ELEMENTS
OF
A
LETTER
OF
CREDIT
• A
payment
undertaking
given
by
a
bank
(issuing
bank).
23
“Is
there
any
specific
statute/rules/regulations
in
India
governing
letter
of
credit?”
available
at:
http://www.linkedin.com/answers/law-‐legal/corporate-‐law/finance-‐securities-‐law/LAW_COR_FSL/1012375-‐
60840417
(visited
on
October
26,
2012).
Singh
24
Gulab
A.
“Letter
of
Credit
Vs
Bank
Guarantee”
available
at:
http://gulabsingh.wordpress.com/2009/01/18/letter-‐of-‐credit-‐vs-‐bank-‐guarantee/
(visited
on
October
21,
2012).
CONCLUSION
Guarantee
is
an
undertaking
to
be
collaterally
responsible
for
the
debt,
default
or
miscarriage
of
another.
In
banking
context,
it
is
an
undertaking
given
by
the
guarantor
to
the
banker
accepting
responsibility
for
the
debt
of
the
principal
debtor
if
he
defaults.
Bank
guarantees
should
be
unconditional
guarantees
by
the
bank
to
beneficiary
undertaking
to
pay
the
sum
specified
in
the
guarantee
on
demand
and
without
demur.
In
bank
guarantee
the
bank
binds
itself
to
pay
unconditionally
and
unequivocally
without
protest
or
performance
of
the
principal
debtor.
A
bank
guarantee
is
an
independent
and
distinct
contract
between
bank
and
the
beneficiary,
and
is
not
qualified
by
the
underline
transaction
and
the
primary
contract
between
the
people
at
whose
instance
the
bank
guarantee
is
given.
When
bank
gives
absolute
and
unconditional
guarantee
then
the
courts
cannot
issue
an
injunction
restraining
the
bank
for
the
payment.
The
main
difference
between
the
ordinary
guarantee
and
the
bank
guarantee
is
that
in
ordinary
guarantee
the
contract
between
the
surety
and
the
creditor
arise
as
a
subsidiary
to
the
contract
between
the
creditor
and
the
principal
debtor
but
the
bank
guarantee
is
an
independent
contract
from
the
principal
contract.
There
is
no
doubt
that
documentary
credits
are
the
most
common
way
of
payment
for
international
sales.
English
judges
have
referred
to
documentary
credits
as
“the
life
blood
of
international
trade”.
This
interpretation
well
establishes
the
importance
of
documentary
credit
for
international
trade.
It
seems
that
documentary
credits
will
preserve
their
popularity
until
a
better
system
is
developed.
Indeed,
the
documentary
credit
system
has
some
points
that
should
be
improved
and
adjusted
according
to
new
technology
and
new
commercial
concepts.
Revisions
of
UCP
have
been
very
useful
in
achieving
this
idea.
However
there
has
been
no
improvement,
in
respect
of
one,
maybe
the
most
important
problem:
fraud.
UCP
500
is
silent
on
this
issue.
Case
law
has
considered
the
issue
but
has
not
provided
a
precise
manner
to
follow
or
a
proper
solution
to
apply.
REFERENCES
BOOKS
1. A.C.
Moitra,
“Law
of
Contract
and
specific
relief
Act”(
Universal
Law
publishing
Co.
Pvt.
Ltd.
2005
Ed.,
2006
reprint).
2. A. Singh, “Law of contract” (Eastern Book Company, Lucknow, 2002 Ed.).
3. A.
Singh,
“Principles
of
Mercantile
law”(
Eastern
Book
Company,
Lucknow,
2006
Ed.).
4. Halsbury’s
Laws
of
England,
“Guarantee
and
Indemnity”
(4th
Ed.
reissue,
Vol.
20,
para
101).
5. M.A.
Mir.,
“The
law
relating
to
bank
guarantees
in
India”
(Universal
Book
Traders,
1992
Ed.).
6. M.L.
Tannan,
Tannan’s
Banking
law
and
practice
in
India.
(Wadhwa
and
Company,
New
Delhi,
2005
Ed.).
7. M.L.
Tannan,
Tannan’s
Banking
Law
And
Practice
(Wadhwa
and
Company,
New
Delhi,
21st
edn.,
2010).
8. P.N.
Varshney,
Banking
Law
And
Practice
(Sultan
Chand
and
Sons
Educational
Publishers,
New
Delhi,
21st
edn.,
2005).
9. Pollock
&
Mulla,
“Mulla
on
Indian
contract
and
specific
relief
act”
(2006
Ed.).
10. R.K.
Gupta,
“Banking
law
and
practice”
(Modern
Law
Publications,
2004
Ed.).
ARTICLES
&
WEB
SOURCES
1. Alphonse
M.
Squillante,
“Letter
of
Credit:
A
Discourse
Part
11”
84
Com.
L.J.
426
1979
available
at
:
http://heinonline.org
(visited
on
August
27,
2012).
2. Dr.
Alok
Ray,
“Enforcement
of
Bank
Guarantee:Limits
of
Court’s
Interference”
available
at:
http://www.icai.org/resource_file/11510p836-‐840.pdf
(
visted
on
10th
October,
2012).
3. Handerson
Wade,
“Bank
guarantee
explained”
available
at:
http:ezinerticles.com
(visted
on
21-‐10-‐2012).
4. Herman
N.
Finkelstein
“Performance
of
conditions
under
a
letter
of
credit”
25
Colum.
L.
Rev.
724
1925
available
at:
http:/heinonline,org
(visited
on
August
27,
2012).
5. Jessy
Ramachandran,
“Bank
guarantee”
available
at:
http://www.american-‐
charomical.com
(Visited
on
10-‐10-‐2012).
6. Justin
Pritchart,
“Letter
of
Credit
-‐
How
Letters
of
Credit
Work”
available
at:
http://banking.about.com/od/businessbanking/a/letterofcredit.htm
(visited
on
August
30,
2012).
7. Letters
of
Credit”
14
Bus.
L.J.
408
July-‐December
1929
available
at
:
http://heinonline.org
(visited
on
August
27,
2012).
8. Mohd
Yasin
Wani
&
Rais
Ahmad
Qazi,
“A
Legal
Perspective
of
Bank
Guarantee
System
in
India”
available
at
:
ijrcm.org.in/download.php?name=ijrcm-‐1-‐vol-‐3(visited
on
October
27,
2012).
9. Pollock
&
Mulla,
Mulla
on
Indian
Contract
and
Specific
Relief
Act
(2006
Ed.).
10. Prakash,
Faq
on
Bank
Guarantee.
http://www.calclubindia.com.
6th
Dec,
2009.
(Visited
on
12-‐10-‐2012).
11. Rajesh,
“Bank
guarantee”
available
at:
http://www.calclubindia.com,
27th
September,
2012.
(Visited
on
14-‐10-‐2012).
12. www.linkedin.com/answers/law-‐legal/corporate-‐law/finance-‐securities-‐
law/LAW_COR_FSL/1012375-‐60840417
(visited
on
October
26,
2012).