Standard Chartered Bank vs Heavy Engineering Corporation Ltd.

The Supreme Court upheld the High Court's decision that the bank guarantees were validly invoked under the terms of the guarantees provided by Grindlays Bank, amounting to Rs. 71,35,100 and Rs. 20,32,500. The Court emphasized that the guarantees were unconditional and enforceable, thus affirming the decree for Rs. 1,10,33,207 with interest at 8% per annum from the date of the suit. The ruling clarified the legal principles surrounding the invocation of bank guarantees in contractual obligations.