Whether one party can withhold performance bank guarantee if it has acknowledged due performance of contract?

  In view of the above, the Arbitral Tribunal had rightly directed

refund of the amount recovered by BSNL from invocation of the

Performance Bank Guarantee in question. There is no principle in law whereby BSNL could be permitted to retain the Performance Security after it had acknowledged due performance of the Contract. {Para 19}

IN THE HIGH COURT OF DELHI AT NEW DELHI

 Judgment delivered on: 28.03.2022

 O.M.P. (COMM) 431/2019 & I.A. 14326/2019

BHARAT SANCHAR NIGAM LIMITED  Vs TERACOM LIMITED 

CORAM

HON’BLE MR JUSTICE VIBHU BAKHRU

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Whether agreement will come into existence even if it is to be performed at future date?

Mr. Seervai contended that the said leave and licence agreements had not come into effect/existence. He based the submission on the fact that the agreements had been terminated prior to the commencement of the terms thereof.

10. The submission is not well founded. The agreements were executed by both the parties. The mere fact that they were to be performed at a later date cannot possibly lead to the conclusion that the agreements had not come into existence and that the parties were not bound by the terms thereof. There is a fundamental difference between an agreement coming into existence and the date for the performance thereof. Merely because obligations under an agreement are to be performed at a future date, it does not follow that the agreement has not come into existence upon the execution thereof or upon the terms and conditions thereof being agreed upon.

IN THE HIGH COURT OF BOMBAY

C.P. No. 898 of 2008

Decided On: 12.02.2009

 Corporate Management Council of India P. Ltd. Vs.  Lonza India P. Ltd.

Hon'ble Judges/Coram:

S.J. Vazifdar, J.

Citation: 2009(3) ALLMR 770

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