Supreme Court · 1997 INSC 486 · Decided 7 May 1997

Dwarikesh Sugar Industries LTD. v. Prem Heavy Engineering Works (P) LTD.

Court: Supreme Court of India
Citation: 1997 INSC 486 · [1997] SUPP. 1 S.C.R. 184
Case number: CIVIL APPEAL No. 3376/1997
Decided: 7 May 1997
Bench: K.S. PARIPOORNAN, K. VENKATASWAMI, B.N. KIRPAL (3-judge bench)
Outcome: Appeal(s) allowed
Case type: Civil
Acts & sections cited: CPC Section 39; Constitution

Headnote

Code of Civil Procedure, 1908 : Order 39 Rule J. C Bank Guarantee-Encashment of unconditional bank guarantee-In- junction restraining-No allegation of fraud or i"etrievable ham1 or injustice made in the injunction application-Held : Only in exceptional case of established fraud which would encashment resulting in i"etrievable hann or injustice which would make it impossible for the guarantor to reimburse himself, if it ultimately D succeeded, cowt should nonnally not grant injunction-Principle of undue enrichment not applicable to encashme11t of bank guarantee-In the cir -

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