JAI BALAJI INDUSTRIES LTD. vs PEC LTD..

The Supreme Court upheld the Calcutta High Court's order allowing the appellant to encash cheques subject to furnishing a Bank Guarantee, as per the provisions of the Code of Civil Procedure, 1908. The Court emphasized the necessity of a Bank Guarantee to secure the interests of the parties involved in the High Seas Sale Agreement under the Sale of Goods Act, 1930. The Court directed the Receiver to sell the goods and confirmed that the sale proceeds should be handed over to the respondent, expediting the suit's proceedings.