Kerala HC: Right of Creditor to Have Bank Guarantee Invoked Only During Currency of Bank Guarantee - (29 Apr 2021)
CONTRACT
Kerala High Court has held that the right of a creditor to have the Bank Guarantee invoked is only during the currency of the Bank Guarantee and not during the extended claim period of one year. The Court has explained that the extended claim period, allowed pursuant to the insertion of Exception 3 to Section 28 of the Contract Act, 1872 could be claimed only when the bank guarantee was invoked during the validity of the Agreement or the Bank Guarantee.
Tags : KERALA HIGH COURT BANK GUARANTEE
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