Gujarat Maritime Board vs L&T; Infrastructure Development ...

The Supreme Court addressed the issue of the High Court's discretion under Article 226 in restraining the invocation of a bank guarantee. The Court held that the unconditional bank guarantee issued by Yes Bank was enforceable despite the first respondent's inability to proceed with the project, as the terms of the guarantee were clear and binding. The Court emphasized that the bank's liability was absolute upon demand from the Gujarat Maritime Board, thus upholding the appellant's right to invoke the guarantee.