HINDUSTAN STEELWORKS CONSTRUCTION LTD. vs G.S.ATWAL & CO.(ENGINEERS) PVT.LTD.

The Supreme Court addressed the appeal concerning the injunction granted by the Calcutta High Court against the encashment of two Bank Guarantees under the Arbitration Act, specifically Section 41. The Court held that the injunction was improperly granted as the appellant was entitled to invoke the guarantees without needing to assess the quantum of loss beforehand. The Court overturned the High Court's decision, allowing the appellant to encash the Bank Guarantees as per the terms agreed upon, thereby reinforcing the enforceability of bank guarantees in contractual disputes.