#Contractual Remedies

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.

Punjab & Haryana High Court rules that a valid arbitration agreement under Section 8 of the Arbitration and Conciliation Act must be enforced even if the borrower files an injunction suit. The court clarifies that parallel civil proceedings do not override contractual arbitration rights, reinforcing the primacy of arbitration clauses in commercial disputes.

Bombay High Court holds that success in arbitration determines enforceable property rights, not preliminary orders. Clarifies legal primacy of arbitral awards over administrative actions.