{"id":173779,"date":"2010-08-03T00:00:00","date_gmt":"2010-08-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/capsugel-vs-ms-on-3-august-2010"},"modified":"2017-01-15T04:46:36","modified_gmt":"2017-01-14T23:16:36","slug":"capsugel-vs-ms-on-3-august-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/capsugel-vs-ms-on-3-august-2010","title":{"rendered":"Capsugel vs M\/S on 3 August, 2010"},"content":{"rendered":"
Gujarat High Court<\/div>\n
Capsugel vs M\/S on 3 August, 2010<\/div>\n
Author: Jayant Patel,&Nbsp;Honble Kumari,&Nbsp;<\/div>\n
   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nCA\/2273\/2010\t 7\/ 7\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nCIVIL\nAPPLICATION - FOR STAY No. 2273 of 2010\n \n\nIn\n\n\n \n\nFIRST\nAPPEAL No. 481 of 2010\n \n\n \n \n=====================================================\n \n\nCAPSUGEL\nHEALTHCARE LIMITED - Petitioner(s)\n \n\nVersus\n \n\nM\/S\nVIMAL SERVICES LIMITED & 1 - Respondent(s)\n \n\n===================================================== \nAppearance\n: \nMR\nMIHIR JOSHI,SR.COUNSEL with MR ABHIJAT and MR\nNIKUNT K RAVAL for Applicant \nMR\nSN SOPARKAR,SR.COUNSEL with MR AMAR N BHATT for Respondent(s):\n1, \nNone for Respondent(s) :\n2, \n=====================================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE JAYANT PATEL\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHON'BLE\n\t\t\tSMT. JUSTICE ABHILASHA KUMARI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 03\/08\/2010 \n\n \n\n \n \nORAL\nORDER<\/pre>\n
(Per
\n: HONOURABLE MR.JUSTICE JAYANT PATEL)<\/p>\n
1.\tPresent
\napplication is filed for interim injunction pending the hearing of
\nthe First Appeal against the invoking of the letter of credit by the
\nbank (for the sake of convenience, shall be referred to as   the
\nbank guarantee or letter of credit ).\n<\/p>\n
2.\tWe have
\nheard Mr. Mihir Joshi, learned senior counsel appearing with learned
\ncounsel Mr. Abhijat with learned counsel Mr.Nikunt Raval for the
\napplicant and Mr.S.N.Soparker,learned senior counsel with Mr. Amar
\nBhatt for the respondents.\n<\/p>\n
3.\tWe may
\nrecord that since the lower Court has, after considering the nature
\nof Bank Guarantee, also has proceeded to examine the contract and its
\nbreach between the plaintiff and the defendant No.1, therefore
\nwhether such could have been done while considering the aspects of
\nthe interim measure or not, the appeal has been admitted. So far as
\nthe aspects of the observations made by the trial Court for the bank
\nguarantee and the interpretation of the clauses of the bank guarantee
\nare concerned, it appears that the view taken by the trial Court does
\nnot deserve to be interfered with pending the First Appeal. In
\naddition to the observations made by the trial Court, the matter also
\nis required to be considered on equitable consideration, on the
\naspect as to whether the party to the proceedings can be permitted to
\nback out from the bank guarantee or not and the answer would be in
\nnegative.\n<\/p>\n
4.\tIt is,
\nby now, well settled that the contract of bank guarantee is to be
\nconsidered as independent and it should not be and cannot be mixed up
\nwith the contract between the parties inter se i.e. other than the
\nbank guarantee. So far as the agreement between the parties is
\nconcerned, namely, the plaintiff and the defendant No.1, it is to be
\ntreated as a separate contract and its term should not be mixed with
\nthe contract of bank guarantee.\n<\/p>\n
\tFurther,
\nif bank guarantee is to be considered as an independent contract,
\ncertain aspects in the present Letter of Guarantee deserves to be
\nrecorded. One is that its title is irrevocable revolving L\/C, meaning
\nthereby, it cannot be revoked and would continue to remain as
\nrevolving. The second is that the liability to make payment would
\nstand attracted when signed invoice in two copies are submitted. The
\nadditional condition does provide for drawing of the draft for net
\nrental payment as per the Annexure, but the same cannot be segregated
\nfrom condition No.3, which refers to the rental payment providing for
\n30 months on rental basis as per the work order No.2000-2007 dated
\n5.5.2006. In the work order dated 5.5.2006 at Clause 3.2.13 under the
\nhead of guarantees and foreclosure, relevant of which reads as
\nunder:-\n<\/p>\n
However due to whatsoever reason if the order\/Contract is required to
\nbe closed\/cancelled\/ terminated before the specified
\ncontractual\/rental period due to any ‘Force Majeure’ Conditions or
\ndue to whatsoever reason in that case M\/s.Bharti Healthcare Ltd. and
\nM\/s.Capsugel Ltd.( Unit of Pfizer Ltd.) agrees to pay us the entire
\nrental charges for the remaining non-used  hours of termination\/
\nclosure\/ cancellation \/ non used of the installed CPP of this
\ncontract.\n<\/p>\n
\tFurther
\nClause No.5 of the bank guarantee reads as under :-\n<\/p>\n
\t   Even
\ndue to any of the other reason, the payment to the extent of the LC
\namount shall not be hold by this Bank due to whatsoever reason and
\nsuch payment will be paid by this Bank within 15 days from the date
\nof the presentation of the Invoice\/Documents of the beneficiary.\n<\/p>\n
\tThe
\naforesaid underlined portions show that as per the Clause 5 of the
\nspecial instructions, even due to any of the other reason, the
\npayment to the extent of the L.C amount shall not be held by the Bank
\ndue to whatsoever reason and such payment will be paid by this Bank
\nwithin 15 days from the date of presentation of the Invoice\/Documents
\nof the beneficiary.\n<\/p>\n
5.\tThe
\naforesaid special circumstances goes to show  that once the invoice
\nis drawn for the invoking of the bank guarantee, the same could be
\ntermed as unconditional and the Bank has to honour the same,
\nirrespective of any dispute or discrepancy in the drawing of the
\nInvoice. The same is coupled with the aforesaid above referred
\ncondition of work order which binds the party to the agreement to
\nhonour and guarantee payment for any reason whatsoever including  the
\nForce Majeure.\n<\/p>\n
6.\tAttempt
\nto contend that the additional condition  No.1 providing for drawing
\nof the draft at site for the net rental payment as per the Annexure
\nbe read as part of the bank guarantee, even if considered, cannot be
\nread to dillute or frustrate the bank guarantee and other conditions
\nof the bank guarantee. Whether net rental for one reason or another
\nis payable or not is an aspect, which may be governed by MOU for
\nwhich either party to the agreement may press the conditions of the
\nMOU by way of arbitration or otherwise. But considering all other
\nconditions of the bank guarantee, it is not possible for us to prima
\nfacie accept the contention, at this stage, that merely because there
\nwas dispute or that there was genuine dispute about the liability to
\npay net rental, the bank guarantee could not be invoked.\n<\/p>\n
7.\tIn view
\nof the aforesaid, read with the reasons recorded by the trial Court
\nto the extent of nature of bank guarantee, we find that it would not
\nbe a case for granting interim injunction restraining the defendant\/
\nopponent herein from invoking the bank guarantee. Be it noted that
\nthe Bank has not raised any dispute but the plaintiff, who may be
\nultimately affected by the invoking of the bank guarantee, has
\napproached to the trial Court for interim protection. Even, if the
\nmaintainability is not given, further due weightage when the bank
\nguarantee is, in view of the reasons recorded by us hereinabove,
\ncould be said as for attracting the liability or honouring the
\nliability due to any reason whatsoever, the interim injunction does
\nnot deserve to be granted, for invoking of the bank guarantee which
\nis the only prayer made in the present application.\n<\/p>\n
8.\tHence,
\napplication is rejected.\n<\/p>\n
9.\tAt this
\nstage, Mr. Joshi, learned senior counsel, prayed for suspending the
\noperation of the order and continuance of the interim relief for some
\ntime so as the enable his client to approach before the higher forum.\n<\/p>\n
10.\tConsidering
\nthe facts and circumstances,earlier interim relief shall continue
\ntill 25.8.2010.\n<\/p>\n
(Jayant
\nPatel, J. )<\/p>\n
(Smt.\n<\/p>\n
Abhilasha Kumari, J.)<\/p>\n
sudhir<\/p>\n
\t\t   \u00a0\u00a0\u00a0<\/p>\n
\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"
Gujarat High Court Capsugel vs M\/S on 3 August, 2010 Author: Jayant Patel,&Nbsp;Honble Kumari,&Nbsp; Gujarat High Court Case Information System Print CA\/2273\/2010 7\/ 7 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD CIVIL APPLICATION – FOR STAY No. 2273 of 2010 In FIRST APPEAL No. 481 of 2010 ===================================================== CAPSUGEL HEALTHCARE LIMITED – Petitioner(s) […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-173779","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"\nCapsugel vs M\/S on 3 August, 2010 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/capsugel-vs-ms-on-3-august-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Capsugel vs M\/S on 3 August, 2010 - 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