LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

KrishnaRao (Construction)     07 December 2016

Who can invoke the bg?

Dear Friends!

The Bank Guarantee has been issued in the name of "Managing Director" of ABC Company. The Bank Guarantee has been invoked by "Technical Director" of the ABC Company. The Bank has honoured the invocation of BG and paid amounts

Whether the "Technical Director" of ABC Company can invoke the BG in place of "Managing Director" as beneficiery of the BG? BGs are not Negotiable instruments. They are mortagages. How the Bank honour the invocation by a person, whose name is not mentioned in the BG? Is it possible?



Learning

 3 Replies

adv.bharat @ PUNE (Lawyer)     07 December 2016

iF md HAD given his power to technical director to do it then it is valid.

Suri.Sravan Kumar (senior)     07 December 2016

in what way the said action of the Bank affected the Co?

Law Aspire (Legal)     07 December 2016

BG is issued for the Company and not Managing Director.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register