#Bank Guarantee Encashment

Karnataka HC dismisses a contractor’s price escalation claim, ruling that promissory estoppel does not apply without a clear, binding promise beyond the contract’s terms. The court upheld rescission due to breach and denied relief for unproven losses, reinforcing strict adherence to contractual clauses in public procurement disputes.

MP High Court rules that invoking a performance bank guarantee without first exhausting contractual dispute resolution mechanisms violates agreement terms and natural justice. The ruling reinforces that parties must adhere to prescribed contractual remedies before resorting to bank guarantee encashment, impacting construction contracts and commercial agreements.