M/S Gangotri Enterprises Ltd vs Union Of India & Ors

The Supreme Court upheld the High Court's dismissal of the appellant's appeal regarding the encashment of a Bank Guarantee under the contract for construction works, emphasizing that the appellant failed to complete the work within the stipulated time and did not provide sufficient grounds for an interim injunction. The Court noted that the termination of the contract was justified due to delays caused by the appellant and that the respondents were entitled to encash the Bank Guarantee as per the terms of the contract. The decision reinforces the principle that performance guarantees are enforceable when contractual obligations are not met, particularly under the Indian Contract Act, 1872.