Bank Guarantee Cannot Be Invoked Without Notice or Proof of Breach: Calcutta HC

Nirman Constructions & Anr. Vs Union of India and Others (Calcutta High Court) The Calcutta High Court adjudicated a writ petition challenging the invocation of a performance bank guarantee amounting to ₹7,16,346 furnished pursuant to a work order issued for modification and rebuilding works in DSP Township. The petitioners had been awarded the contract through a Letter of Acceptance dated 7 December 2022, followed by a work order dated 15 December 2022, which required submission of a performance security deposit equivalent to 3% of the contract value. Accordingly, the petitioners furnis...