Union Of India & Anr vs M/S Indusind Bank Ltd.& Anr

The Supreme Court addressed the applicability of the 1997 Amendment to Section 28 of the Indian Contract Act, 1872, in the context of bank guarantees related to export contracts. The Court held that the amendment does not absolve the bank from its obligation to make payments under the guarantees despite the exporters' failure to furnish necessary documents within the stipulated time. The Court ruled in favor of the Union of India, affirming the enforcement of the bank guarantees as per the amended provisions.