BANK GUARANTEE
Bank Guarantee No. ____________________________
To,
MAGWEN VALVES PRIVATE LIMITED,
S-13, MIDC PHASE-11, CHAKAN INDUSTRIAL AREA, VILLAGE SAVARDARI,
MAHARASHTRA, INDIA – 410501
This GUARANTEE is issued this (Date) by (Bank Name) Bank having its registered office at
____________________________ and branch office at ___________________________
(herein after referred to as the "Bank" which expression unless repugnant to the context
shall include its successor assigns etc.) in favor of Magwen Valves Private Limited a
company formed under the Indian companies Act, 1956 and having its works at S-13, MIDC
Phase-II, Chakan Industrial Area, Village Savardari, Pune, Maharashtra, India - 410501
(hereinafter referred to as the Buyer which expression unless repugnant to tire context
shall include its successor and assigns etc.
WHEREAS the Buyer has placed an order having purchase Order No. 2021-OD-335 Dt. 18-
03-2021 (referred to as the said Contract) on Sajcon Consultants Pvt. Ltd., 204, Zen
Business Centre, Wakad, Pune (hereinafter referred to as the supplier which expression,
unless repugnant to the context, shall include its successors and assigns etc.) for supply of
Construction Work (Foundation Work for Machines).
AND WHEREAS under Terms of the said Contract the supplier is required to furnish to you
in respect of performance of the Construction Work (1. No water seepage in pits during
rainy season. 2. No cracks to be developed during running of machines. 3. If developed to
be repaired by contractor at his own cost) a Bank Guarantee Rs. 3,60,000/- (Rupees Three
Lacs Sixty Thousands Only) representing 10% of the Contract Value.
AND WHEREAS the supplier has approached us to furnish a Guarantee as required by the
said contract, which we have agreed to do.
AND WHEREAS in consideration of the above, we (Bank Name) Bank, incorporated under
the provisions of the Indian Companies Act 1956, having our Registered Office at
__________________________ and among the other things, a Branch Office located at
_________________________________________(hereinafter referred to as THE BANK)
agree that in the event of the supplier failing to give the guaranteed performance to
Construction Work in accordance with the terms and conditions i.e. 1. No water seepage in
pits during rainy season. 2. No cracks to be developed during running of machines. 3. If
developed to be repaired by contractor at his own cost which is as per purchase Order No.
2021-OD-335 Dt. 18-03-2021, the bank undertakes to pay unconditionally on demand by
you a sum not exceeding Rs. 3,60,000/- (Rupees Three Lacs Sixty Thousands Only) being
10% value of the said contract. The Buyers decision on the failure of the supplier for
required performance shall be final and binding on the Bank.
THE BANK FURTHER agrees that this guarantee shall not be revoked during its currency
without the written consent of the Buyer.
The Guarantee shall be valid from the date of issue and shall remain in force up to (Date)
(expiry date) unless extended further at our sole discretion, prior to the expiry.
Invocation of this Bank Guarantee shall be a letter signed by authorized signatory of your
organization.
Any notice of demand for payment received by the bank from the buyer within (Date) shall
be considered and will be binding on the bank.
The bank agrees that the Courts at Mumbai alone shall have the exclusive jurisdiction in
relation to any default under this guarantee.
NOTWITHSTANDING anything contained herein above:
1. Our liability under this guarantee shall not exceed Rs. 3,60,000/- (Rupees Three Lacs
Sixty Thousands Only)
2. This guarantee shall be valid for the period up to (Date)
3. The beneficiary’s right as well the Bank's liability under this Guarantee shall stand
extinguished unless a written claim or demand is made under this Guarantee on or before
completion of one year from expiry date i.e. ___________ or such extended date at
______________ Bank (issuing branch) _________________________ where after it
ceases to be in effect in all respects whether or not the original bank guarantee is returned
to us.
Executed This on ____________ at ____________.
For _____________ Bank
Authorized Signatory
Bank Seal
