M/S. BSES LTD.(NOW RELIANCE ENERGY LTD.) vs M/S. FENNER INDIA LTD.

The Supreme Court addressed the issue of injunctions against the enforcement of bank guarantees, specifically examining the exceptions of 'lack of good faith' and 'oblique purpose' as grounds for intervention. The Court held that unconditional and irrevocable bank guarantees must be honored unless there is clear evidence of fraud or irretrievable injustice, reaffirming the principle that such guarantees are meant to be enforced without interference. The appeal was allowed, and the injunction against the enforcement of the bank guarantees was lifted.