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TMI Blog2014 (12) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... the request of the customer i.e. Alpine. If clause 7 of BGs is read harmoniously with clause 5, the inescapable conclusion is that while IOB is obliged to keep the BGs alive and not permit the same to be revoked by Alpine, the said obligation is limited only during the valid tenure of the BGs. The obligation of IOB to renew the BGs – as expressed in the opening words of clause 7 – is subject to compliance with clause 5, that is, subject to request of Alpine. Alpine has not made any request for renewal of the BGs and the respondent authorities have also not ensured that Alpine take the necessary steps for IOB to renew the BGs and the BGs lapsed. It is difficult to accept that clause 7 of the BGs would enjoin IOB to renew the BGs without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the impugned communications dated 22.04.2014 and 12.05.2014 ; (c) Restrain the Respondent no.1 from disseminating any adverse information/comments about the Petitioner to any third party/Government departments etc. as mentioned in the said impugned communications dated 22.04.2014 and 12.05.2014. 2. By a notice dated 16.05.2014, IOB was called upon to appear before the Deputy Commissioner of Customs (A) with all relevant documents and was further informed that in absence of its appearance an ex-parte decision would be taken for enforcement of the bank guarantees (hereafter BGs ) furnished by IOB to the Customs Authorities (being LG No 408/IOB/LGI/57/2012 dated 03.04.2012 for ₹ 37,91,852 and LG No 408/IOB/LGI/54/2012 dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are reproduced as under:- 5 ..This Guarantee will remain in force for SIX (6 months) months of its issue and we undertake to renew the Bank Guarantee at the request of the exporter till the matter for which the Guarantee is furnished is decided. xxxxx xxxxx xxxxx xxxxx 7. We hereby undertake to renew the Bank Guarantee from time to time till the matter is finally decided and also confirm that the guarantee will not be revoked by the guarantor without prior written consent of the government. 8. Notwithstanding anything contained herein: a. Our liability under this guarantee shall not exceed ₹ 25,32,940/- (Rs. Twenty Five lakhs Thirty two thousand nine hundred forty only). b. This Bank Guarantee shall be valid up to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to be revoked by Alpine, the said obligation is limited only during the valid tenure of the BGs. The obligation of IOB to renew the BGs as expressed in the opening words of clause 7 is subject to compliance with clause 5, that is, subject to request of Alpine. Reading the BGs in any other manner would render the latter part of clause 5 as quoted above otiose. The clause limiting the validity of BGs to six months would be of no effect. 10. In the present case, Alpine has not made any request for renewal of the BGs and the respondent authorities have also not ensured that Alpine take the necessary steps for IOB to renew the BGs and the BGs lapsed. It is difficult to accept that clause 7 of the BGs would enjoin IOB to renew the BGs w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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