2020 (12) TMI 1406 - HC - IBC

Levy of charges to break the bank guarantee into two parts, one relating to 17% and other relating to 83% of the bank guarantee amount - HELD THAT - Respondent No. 5 shall issue two fresh bank guarantees of the amount to be communicated by learned counsels for both the parties. The bank guarantee relating to 17% of the amount shall be retained by the Bank to be produced before this Court at the time of passing of the order on the petitioner s application and the copy thereof shall be furnished to learned counsels for both the parties. The second bank guarantee with respect to 83% of the amount shall be handed over by respondent No. 5 to Mr. Jasmeet Singh, learned Standing Counsel, within 10 working days of the completion of all the necessary formalities. It is clarified that the Bank shall not levy any charges on the petitioner for breaking up of the bank guarantee and issuing the two bank guarantees in terms of this direction. However, the necessary expenditure including the Stamp duty shall be borne by the petitioner. Appllication disposed off.

Summary

The Delhi High Court conducted a video conference hearing for a case involving Indian Bank and bank guarantees. Indian Bank agreed not to charge for splitting the bank guarantee into two parts. Both parties to provide figures and terms for the two bank guarantees within specified timelines. Indian Bank to issue two fresh bank guarantees as per instructions. The petitioner is responsible for stamp duty and other expenses. The Court clarified it was only dealing with the bank guarantee related to 17%. The application was disposed of accordingly, and the order was to be uploaded on the Court's website immediately.