Can a court issue an injunction against a bank guarantee?
Can a court issue an injunction against a bank guarantee?
If bank guarantee is conditional, the beneficiary cannot have unfettered right to invoke the guarantee and the court can issue an injunction against invocation of the guarantee in view of the facts of the case.
When is an injunction can not be granted?
Grant of injunction is equitable relief, it is seldom granted when in opinion of court plaintiff is able to remedy his own grievance. 14. Suit for declaration and permanent injunction to safeguard construction where permission revocable at the option of licensor. 15. Keen struggle between parties is not ground of injunction. 16.
Can a Court restrain the invocation of a bank guarantee in India?
The restraining of the invocation of a bank guarantee has traditionally been one of the less ventured into areas of law. In India as well as in common law, Courts have laid down strict standards and thresholds for judicial intervention, and only in the rarest cases would Courts allow an injunction against invocation of a bank guarantee.
When does an interim injunction become a permanent order?
Interim injunctions may become permanent if the claimant is successful at trial. In general terms, when exercising its discretion to issue an injunction, the court will need to be persuaded that there is a good reason why the respondent’s rights should be restricted before the court knows whether the applicant will succeed at trial.
If bank guarantee is conditional, the beneficiary cannot have unfettered right to invoke the guarantee and the court can issue an injunction against invocation of the guarantee in view of the facts of the case.
Can a court order an injunction against a stranger?
An injunction may be issued only against a party and not against a stranger or a third party. It also cannot be issued against a court or judicial officer. Normally, injunction can be granted against persons within the jurisdiction of the court concerned.
Can a court order a bank guarantee in India?
In India as well as in common law, Courts have laid down strict standards and thresholds for judicial intervention, and only in the rarest cases would Courts allow an injunction against invocation of a bank guarantee. This trend, however, is changing and evolving constantly.
When does a court issue a temporary injunction?
Temporary injunctions are thus injunctions issued during the pendency of proceedings. An injunction is a judicial process whereby a party is required to do, or to refrain from doing, any particular act.