Reviewed case brief

UP Cooperative Federation Ltd v. Singh Consultants & Engineers Pvt Ltd

(1988) 1 SCC 174

The Supreme Court confirmed the autonomy of bank guarantees, holding that the bank must honour its commitment upon invocation regardless of disputes in the underlying contract between the customer and beneficiary.

bank-guaranteeautonomyunconditionalinvocationindependence
Court
Supreme Court of India
Year
1988
Subjects
Law of Contract I
Reviewed
2026-06-29

Rule established

Bank guarantees are autonomous instruments; bank must pay on invocation regardless of underlying disputes

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.