Performance Security cannot be retained after Acknowledgement of Due Performance of Contract

Bharat Sanchar Nigam Limited Vs Teracom Limited (Delhi High Court) The contention that BSNL was entitled to forfeit the Performance Bank Guarantee even though Teracom had performed the Contract, is bereft of any merit. Teracom had submitted the Performance Bank Guarantee, which was initially for a term of three years with effect from 18.12.2010. Thus, the Performance Bank Guarantee expired on 17.12.2013. However, BSNL had insisted that the same be extended as at the material time; the Contract had not been fully The Arbitral Tribunal noted that the Performance Bank Guarantee was successively e...