Remember | Register | Forgot Password?
Bookmark This Page   RSS Feeds  Follow On Twitter

 

Search for Lawyers          
    



Please Wait ..


Discussion > Legal Documents > Expired Bank Guarantee - denial of Bank to discharge   Unanswered Threads Post New Topic

Pages : 1 2


There are 11 Replies to this message


KrishnaRao


Construction
[ Scorecard : 30]
Posted On 08 April 2011 at 10:38 Report Abuse

My Bank Guarantee has been expired on 10.10.2008. It was given as a performance gurantee in favor of Municipal Commissioner, LB Nagar against the contract awarded. The contract was terminated in March 2010. I have a dispute with the departement. I have given a legal notice to that extent. I have asked the Department to  give back the BG originail as it it is expired and no use for them. They have not responded. I have approached the Bank to discharge my BG. They have asked for Original BG. I have informed that is not necessary as the BG is already expired long back. They have told that it is certain that we will not invoke the BG after expire date; but dicharge the BG original BG is required; that is the Bank Rule. Anyy body advise in this context. Is there any such rule either in Banking Laws or in legal paralance?



Isaac Gabriel


Private Practice
[ Scorecard : 3551]
Posted On 08 April 2011 at 21:06 Report Abuse

Alternatively, you can indemnify against the expired BG


KrishnaRao


Construction
[ Scorecard : 30]
Posted On 09 April 2011 at 08:51 Report Abuse

Indemnifying is not a problem. We have already told. But the Bank is not ready to release the FIxed deposit given as security for the BG, even after BG expiry.


V. VASUDEVAN


LEGAL COUNSEL
[ Scorecard : 2711]
Posted On 09 April 2011 at 22:09 Report Abuse

The precise terms of the Bank Guarantee are required to have clear perspective and proper advice. You may either reproduce the releavant clauses or approacha lawyer, producing the whole set of documents. Certain Bank guarantees may have an irrevocable clause against specific obligations.

Vasudevan


Narendra Sharma


Consultant
[ Scorecard : 661]
Posted On 09 May 2011 at 10:28 Report Abuse

 

Write some letters to Bank, then make a complaint at following address:

The Directorate of Public Grievances:
The condition is that at present the dispute should not be pending before any Court, Consumer Forum etc. (It is clarified that the Banking Ombudsman is not a Court for this purpose.)

ADDRESS for sending by Post/Courier:

The Cabinet Secretariat (Public Grievances), 2nd Floor, Sardar Patel Bhawan, Sansad Marg, New Delhi-110001. (For further details, please visit www.dpg.bharatsarkar.nic.in)


Mohan Fatehpuria


Director
[ Scorecard : 24]
Posted On 19 June 2011 at 17:48 Report Abuse

Usually a guarantee bond contains a bank clause meaning:

  " Notwithstanding anything contained herein:

a.       Our liability under this bank guarantee shall not exceed Rs. _______ (Rupees ____only)

b.       This bank guarantee shall be valid upto ____________; and

c.     Unless a demand or claim is made on us in writing on or before ________ to pay the guaranteed amount or any part thereof under this bank guarantee, all your rights herewith shall be forfeited and we shall be relieved and discharged of all our liabilities thereafter."

A BG with a clause as above (or similar) & validity having expired and no written notice for claim having been served by the beneficiary, the bank is no longer authorized to entertain any claim from the beneficiary against expired bank guarantee.

Upon your serving the issuing bank a written notice to close the expired BG and refund the margin money, the bank is required to send a written notice to the beneficiary asking them to return the expired original bond.  If the original bond is not returned by the beneficiary after a lapse of 30 days, the issuing bank is required to cancel the BG and return the margin money without any further delay as RBI guidelines 


rani


student
[ Scorecard : 24]
Posted On 26 September 2011 at 11:30 Report Abuse

could anyone please tell me if there is any decision by a court or any circular by the RBI which says that once the bank guarantee is revoked, the original bank guarantee should be submitted to the bank. I could not find this case anywhere, but I heard there is one such case.

i would also like to know whether the clause in a bank guarantee limiting the liability of the bank for a certain period is violative of Art 28 of the contract act.


rani


student
[ Scorecard : 24]
Posted On 26 September 2011 at 13:47 Report Abuse

from the reply given by Mr.Mohan Fatehpuria, I get to know that there is a RBI guideline which states that If the original bond is not returned by the beneficiary after a lapse of 30 days, the issuing bank is required to cancel the BG and return the margin money without any further delay. I could not find the said guideline. So could you please telll me which guideline is it?


Mohan Fatehpuria


Director
[ Scorecard : 24]
Posted On 27 September 2011 at 21:11 Report Abuse

The below link to a PDF file, the contents of which refers to - "Master Circular - Guarantees issued by RBI to all UCBs" is attached.   Page 6 of this PDF file lays down clear procedure for closure of expired BG. It is also affirmed here that such a closure is not voilative of section28 of the Indian Contrcat Act. However the referred Master Circular of RBI at RBI a website needs to be explored - if you find the same helpful please:

 http://www.spandane.com/books/Training%20Notes%20for%20Bank%20Staff/General%20Ledger/02-BankGuarantee.pdf


devendra


Manager
[ Scorecard : 42]
Posted On 13 October 2011 at 12:27 Report Abuse

Hi,

I have one query relating to stamp duty. We also take Bank guarantee. The BG are issued in various state and store in mumbai. My query is what is the stamp duty applicable?

Does storing in MUmbai attracts provisions of mumbai stamp Act?



Related Files



Previous Thread
Previous
Next Thread
Next

Related Threads


Post your reply for Expired Bank Guarantee - denial of Bank to discharge



Your are not logged in . Please login to post replies

Click here to login


Not a member yet ?? Click here to signup

Message







    

  • This is a public forum. Avoid posting content which you do not wish to disclose in public.
  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.





Subscribe to the latest topics :


Forum Home | Forum Portal | Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads - Month | Unreplied Topics | Forum Stats


web analytics