NATIONAL TEXTILES CORPN. vs TAMIL NADU COOP. MKTG. FEDN.

The Supreme Court addressed the validity of a bank guarantee under the Textile Undertakings (Nationalisation) Act, 1995, holding that the appellant's obligation to pay under the bank guarantee was not extinguished by the nationalization of the mills. The Court emphasized that the agreements were binding despite the nationalization, and the appellant's claim that only a partial amount was due was rejected. The appeal was dismissed, affirming the High Court's decision to allow the invocation of the bank guarantee.