Reviewed case brief
State of Maharashtra v. National Construction Co
(1996) 1 SCC 735
The Supreme Court reaffirmed the independence principle for unconditional bank guarantees, holding that courts should not restrain encashment except in cases of established fraud or irretrievable injustice.
- Court
- Supreme Court of India
- Year
- 1996
- Subjects
- Law of Contract I
- Reviewed
- 2026-06-29
Rule established
Unconditional bank guarantee is independent of underlying contract; courts cannot restrain invocation except for fraud or irretrievable injustice
Facts
Issues
Held
Ratio decidendi
How to use it in an exam
Editorial source
SCC Online
Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.