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TMI Blog2017 (4) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Government on the basis of which the respondent invoked the bank guarantee is untenable in law. Held that:- The parties have agreed to the appointment of an Arbitrator by this Court. Accordingly, Mr. J.P. Khaitan, Senior Advocate is appointed as Arbitrator to adjudicate the dispute between the parties within four months from the date of entering reference.- There shall be an unconditi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoked with a oblique motive disregarding the dispute raised by the petitioner with regard to their liability to pay the service tax. 2. The bank guarantee is an unconditional bank guarantee. The petitioner is not required to be informed before the invocation of the bank guarantee unless there is any requirement to that effect. The dispute is arising out of the contract with which the bank is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd clear assertion of the petitioner that service tax is not payable and the opinion of the Government on the basis of which the respondent invoked the bank guarantee is untenable in law. The bank guarantee should not have been invoked inasmuch as the petitioner is willing to extend the bank guarantee till the disposal of the arbitration proceeding for which the petitioner has already issued notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee for a sum of ₹ 20.34 lakhs and the indemnity bond in favour of the respondent the earlier bank guarantee shall be returned to the petitioner by the respondent. 6. The parties have agreed to the appointment of an Arbitrator by this Court. Accordingly, Mr. J.P. Khaitan, Senior Advocate is appointed as Arbitrator to adjudicate the dispute between the parties within four months from the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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