IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Civil Writ Petition No.12052 of 2011 Date of decision:14.07.2011 M/s Garg Constructions Company ...Petitioner versus M/s National Highway Authority of India ....Respondent CORAM: HON’BLE MR. JUSTICE K. KANNAN ---- Present: Mr. Harsh Garg, Advocate, for the petitioner. ---- 1. Whether reporters of local papers may be allowed to see the judgment ? No. 2. To be referred to the reporters or not ? No. 3. Whether the judgment should be reported in the digest ? No. ---- K.Kannan, J. (Oral) 1. The enforcement of the bank guarantee is sought to be stalled at the instance of the petitioner for a claim that the work contracted to be done has been done to the satisfaction of the authorities and the liability has ceased. The right of enforcement by the respondent of the bank guarantee cannot, therefore, be avail. 2. No action to injunct the enforcement of a bank guarantee is admissible by law except on proof of (i) there is a fraud in securing the bank guarantee itself, (ii) the enforcement of the bank guarantee is subject to a pre-condition, which condition has not been fulfilled (See Civil Writ Petition No.12052 of 2011 (O&M) - 2 - Svenska Handelsbanken Versus Indian Charge Chrome-(1994) 1 SCC 502). The remedy for the petitioner for a claim that the bank guarantee is sought to be enforced without appropriate justification will give rise to an independent cause of action for damages against the person, who is alleged to have made a wrong and unjustified claim by enforcing the bank guarantee. The writ petition for such a relief is not maintainable and it is dismissed as such. (K. KANNAN) JUDGE 14.07.2011 sanjeev