PUNJAB & SIND BANK vs M/S. C.S. COMPANY .

The Supreme Court upheld the decision of the Kerala High Court, which had allowed the appeal of the defendants against the plaintiff-bank's suit for recovery of money. The Court found that the defendants had taken a dishonest stand to evade their liability under the Bank Guarantee issued by the plaintiff-bank as per the terms of the Deed of Indemnity and Guarantee dated 11/5/1983. The Court emphasized the binding nature of the indemnity agreement and confirmed the plaintiff-bank's right to recover the amount due under the guarantee.