U.P. Co-OPERATIVE FEDERATION LTD. vs SINGH CONSULTANTS & ENGINEERS (P) LTD.

The Supreme Court held that under the terms of the contract, the invocation of performance bank guarantees was valid and could not be restrained by injunction. The Court emphasized that the guarantees constituted independent contracts, and the High Court's view that the injunction did not affect the bank was incorrect. The Court ruled that the respondent could seek damages from the appellant but could not prevent the bank from fulfilling its obligations under the guarantees, thus allowing the appeal and setting aside the High Court's order.