M/S. Reliance Salt Ltd vs M/S. Cosmos Enterprises & Anr

The Supreme Court held that the terms of the Bank Guarantee provided by the 1st Respondent were binding and enforceable, emphasizing that the Bank's obligation to pay was triggered by a demand from the Principal Company without requiring further proof of loss. The Court clarified that the guarantee remained in effect until all dues were satisfied or the Principal Company certified the due performance of the consignment agent's duties. The appeal was dismissed, affirming the enforceability of the Bank Guarantee as per the contractual terms.