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26 March 2021| AMR-Bbb Consortium v. Bharat Coking Coal Ltd. & another | FAO(OS) (Comm.) 20/2021 | Rajeev Sahai Endlaw & Sanjeev Narula JJ | 2021 SCC OnLine Mad 1126
Fraud is an exception for grant of injunction against encashment of bank guarantees. But the fraud has to be of a very high degree, which would vitiate the very foundation of the bank guarantee. It must be egregious nature to vitiate the underlying transaction. An allegation that grounds were orchestrated to terminate the contract is vague and does not meet the law requirement on the concept of fraud.
Also, a declaration that the underlying contract was void ab initio cannot be granted in Section 9 ACA.
Read the full judgment here.