KOTAK MAHINDRA BANK LIMITED vs UNION OF INDIA & ORS.

Judgment text excerpt

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: 24th July, 2025 + CS(COMM) 497/2019 KOTAK MAHINDRA BANK LIMITED .....Plaintiff Through: Mr. Sandeep Sethi, Senior Advocate with Mr. Aman Raj Gandhi, Mr. Parthasarthy Bose and Mr. Lakshay Kumar, Advocates. versus UNION OF INDIA & ORS. .....Defendants Through: Mr. Ravi Prakash, Senior Advocate with Mr. Varun Agarwal and Mr. Syed Husain Adil Taqvi, Advocates for D-1 and D-2. CORAM: HON'BLE MS. JUSTICE JYOTI SINGH JUDGEMENT JYOTI SINGH, J. 1. This suit is filed on behalf of the Plaintiff seeking a decree for declaration that Plaintiff is discharged from its obligations under Bank Guarantees (‘BGs’) being: (i) Bank Guarantee No. 0691OBG16010553 dated 23.08.2016; (ii) Bank Guarantee No. 0691OBG16010800 dated 26.08.2016; (iii) Bank Guarantee No. 0691OBG16011649 dated 14.09.2016; (iv) Bank Guarantee No. 0691OBG16012653 dated 30.09.2016; and (v) Bank Guarantee No. 0691OBG16014183 dated 26.10.2016 as also declaring that invocation of the said Bank Guarantees vide notices/letters dated 05.01.2019, 15.01.2019 and 29.01.2019 is invalid, illegal and void. Plaintiff also seeks a decree in the sum of Rs.48,77,13,600/- along with interest from the date of payment against Defendant No.1. Signature Not Verified CS(COMM) 497/2019 Page 1 of 52 Digitally Signed By:KAMAL KUMAR Signing Date:26.07.2025 11:21:50 BRIEF FACTS 2. It is averred that Plaintiff is a Banking Company registered under the Companies Act, 1956 engaged in the business of banking. Defendant No.1/Ministry of Road, Transport and Highways (‘MoRTH’) is an Organization under the Government of India entrusted with task of formulating and administering, in consultation with other Central Ministries/Departments, State Governments etc., policies for Road Transport, Nati