BANK GUARANTEE FOR ADVANCE
NAME OF BANK :
ADDRESS :
BANK GUARANTEE NO :
A/C Messers :
DATE OF EXPIRY :
LIMIT OF LIABILITY :
CONTRACT NO. & DATE :
FOR (NAME OF WORK) :
SUBJECT : 10%
DATED :
To
Dear Sirs
Whereas you have entered into a contract/placed purchase/work order
Ref. ………………………………….dated……………….. and Award Letter
No…………….dated ……………………. (hereinafter called the Contractor) for
………….…………………………………………………………………………………………..
Hereinafter referred to as the said Contract and have agreed to make an
advance payments to M/s……………..a sum of Rs……………… (Rupees
…………………………………….. only) payment representing 10%) in terms of the
said Contract/order for contained, we (name of the bank & address) do
hereby covenant and agree with you as follows:
1. In consideration of the Company having agreed to pay to the
contractor such advance payment in accordance with the agreed
terms, we …………… hereby undertake unconditionally that we will in
the event of the Contractor failing to comply in accordance with the
terms and conditions of the order, pay to the Company any sum or
sums which may from time to time be demanded by the Company
up to a maximum of Rs. …….. (Rupees ……… only) being the amount
paid by the company to the Contractor.
We, …… , do hereby unconditionally undertake to pay the amounts
demanded under this guarantee without any demur, merely on the
demand from the Company. The bank will pay Jindal on demand
subject to written submission of exact reason or cause because of
which breach /failure from siemens in respect to aforesaid contract .
We Any such demand(s) made on the bank shall be conclusive and
binding on the Bank without any further proof as regards the
amount due and payable by the Bank under this guarantee shall be
restricted to an amount not exceeding Rs………...00 (Rupees …………..
only).
2. Notwithstanding anything to the contrary we agree that your
decision as to whether the Contractor has made any such default or
defaults and the amount or amounts to which you are entitled by
reasons thereof will be unconditionally binding on us and we shall
not be entitled to ask you to establish your claim or claims under
this Guarantee but shall pay the same forthwith without any
objection or excuse.
3. We undertake to pay to you any money so demanded
notwithstanding any dispute or disputes raised by the Contractor or
supplier in any suit or proceeding pending before any court of
Tribunal or arbitration relating thereto, our liability under these
presents being absolute and unequivocal.
4. The Payment so made by us under this guarantee, shall be a valid
discharge of our liability for payment hereunder.
5. This guarantee shall come into force simultaneously with your
making the said advance payment to the Contractor and shall not
be revoked by us any time during its currency without your previous
consent in writing.
6. Unless extended, this guarantee shall remain in force till ……….
(Including 1 month claim period) provided however, that should it
be necessary to extend if the contractual obligation is not over we
shall extend forthwith the period of this guarantee on your request
till such time as may be required by you.
7. You will have fullest liberty without affecting this guarantee to
postpone for anytime or from time to time any of your rights or
power against the Contractor and either to enforce or forebear to
enforce any of the terms or conditions of the said Contract and we
shall not be released from our liability under this guarantee by the
exercise of your liberty with reference to the Contractor any
variation or modification of the said Contract or any other act,
matter, or thing whatsoever which under the law relating to sureties
would but for the provisions hereof have the effect of so releasing
us from our liability hereunder. Provided always that nothing herein
contained will enlarge our liability hereunder beyond the limit of
Rs………..(Rupees………….) as aforesaid or extend the period of this
guarantee beyond the said ………unless extended in writing in terms
of clause 5 thereof.
8. All compensations and payments that may be received by you from
the Contractor or any person, firm or company whosoever for or on
account of the Contractor in any way in respect of the said contract
shall be regarded as payments in gross and you will be entitled to
proceed against the assets of the Contractor, should the Contractor
be wound up or dissolved or declared insolvent, in respect of the
whole of the Contractor’s indebtedness to you without any right on
our part to stand in your place in respect of or to claim the benefit
of such compensation or payment or any security that may be held
by you until you shall have received the full payment and this
guarantee shall not in any way be affected by your taking or
varying or giving up any securities from the Contractor or any other
person firm or company on its behalf or by the winding up,
dissolution, insolvency or death as the case may be of the
contractor.
9. In order to give full effect to the guarantee herein contained you
shall be entitled to act as if we were your principal debtors in
respect of all your claims against the Contractor, hereby guaranteed
by us as aforesaid and we hereby expressly waive all our surety
ship and other rights if any, which are in any way inconsistent with
the above or any other provisions of this guarantee.
10. Subject to the maximum limit of our liability as aforesaid this
guarantee will cover all your claim or claims against the Contractor
from time to time arising out of or in relation to your such advance
payment to the Contractor aforesaid and in respect of which your
demand or notice in writing be issued to us before the date of
expiry of this guarantee mentioned above.
11. This guarantee and the power and provisions herein contained are
in addition to and not by way of limitation of or substitution for any
other guarantee or guarantees hereto given to you by us (whether
jointly with other or alone) and now existing un-cancelled and that
this guarantee is not intended to and shall not revoke or limit such
guarantee or guarantees.
12. Unless a claim or demand is made on us in writing on or before
(……………….) (including the one month claim period), all your rights
shall be forfeited and we shall stand released and discharged from
our liability hereunder.
13. We have power to issue this Guarantee in your favour and the
undersigned who are executing this Guarantee have the necessary
power to do so on behalf of the Bank under the ……
14. Notwithstanding anything contained herein above:
a) Our liability under this Bank Guarantee shall not exceed Rs…..
(Rupees …………. Only)
b) This Bank Guarantee shall be valid up to …………………………….
(Including 1 month claim period) and
c) We are liable to pay the guaranteed amount or any part thereof
under this Bank Guarantee only and only if you serve upon us a
written claim or demand on or before …………..
15. This guarantee will be subject to Indian law and the jurisdiction of courts in India
16. The value of the said bank guarantee will be reduced to the extent of the supplies
done by way of an amendment to the bank guarantee and at the request of the
applicant. Such reduced value to be notified by the beneficiary on their letterhead.
17. This guarantee must be returned to the Bank once the purpose of the issuance has
been fulfilled or upon its expiry, whichever is earlier. If the Guarantee is not received
by the Bank within the above mentioned period, it shall be deemed to be
automatically cancelled.
