… The applicant`s argument does not fall within the four corners of the exception, which would limit the contribution of the bank guarantee. Mr. Subramanium informs us that the interviewee has already… He started again. We believe that the interest of justice would be subserved if we inserted the respondent to hold the proceeds of the bank guarantee in a fixed bond provided for arbitration… by preventing, among other things, the respondent from acting by the applicant in favour of the respondent as and through the … it also demanded payment of these amounts. Canara Bank having a partial declaration of commitment of the bank guarantee for 3.79,875 Rs. High Court for two reasons: (1) that bank guarantees were not used with regard to the bank guarantees in question, with the exception of the bank guarantee of 85,000 ru before us. This is: (1) a bank guarantee of 27.2.1980 for 11.54.290 ru. (2) a bank guarantee of 26.7.1986 for 85,000, (3) a bank guarantee of 26.7.1986 for 2.53,250 ru. In a recent judgment of 10 October 2008 (4A_224/2008), the Bundesgerichtshof found a competent arbitral tribunal to rule on a party`s request not to grant a bank guarantee to its contractor.
A Turkish fertilizer company (X A.S.) had entered into a construction contract under which its contractor Y. GmbH was committed to rebuilding and modernizing a plant operated by X A.S. As part of the contract, Y. GmbH has committed to provide a bank guarantee to guarantee a down payment equal to 15% of the total price. After the installation was commissioned, a dispute broke out between the parties as to whether the work provided by Y. GmbH had been performed properly and X A.S. attempted to mention the bank guarantee. Y. GmbH opened proceedings before the relevant regional courts against the bank as the issuer of the bank guarantee and obtained an order prohibiting the bank from paying as part of the guarantee. X A.S., for its part, managed to obtain a foreclosure order against the bank, which led to the seizure of the bank`s assets at the amount of the guarantee. Finally, Y. GmbH initiated arbitration proceedings against X A.S.