Bank guarrantee stayed by court on false/forged documents
Sachin Thakur
(Querist) 13 August 2016
This query is : Resolved
We supplied materials to a big corporate in Hyderabad,They provided third party BG for payment.Now after total materials supplied the third party produced fake Purchase order allegedly issued by them and cited the reason of no supply and got stay on BG(An irrevocable and unconditional) by city civil court.
1)We have submitted reply against this petition proving everything against this cheating.(We have submitted Original P.O of second party,details and receipts of supplies made,details of 5 BGs earlier submitted by buyer which were encashed)
2)we have filed two applications in the form of petition 1)Seeking interim relief from the court by invoking stay.2)Seeking forensic test of document submitted by third party which carries our forged/fabricated signatures.
3)Now the petioner is not filing any rejoinder on one pretext or another by getting dates from the court.
My query is:
There is a clause in BG that irrespective of any suit or case in court bank has to encash the BG on presentation within date of BG-NOW CAN THE COURT PROVIDE A STAY ON THE SAME.
2)WHAT CAN WE DO TO GET THE STAY VACATED IMMEDIATELY AS PARTY IS TAKING DATES AND COURT IS ALSO NOT INVOKING STAY AND WAITING FOR RESPONSE FROM OTHER PARTY.
3)IS THERE SOME PROVISION WITH WHICH WE CAN ATLEAST GET OUR PAYMENT IMMEDIATELY AS BG WAS UNCONDITIONAL.
4)HOW MUCH TIME DOES IT TAKE TO GET A CRIMINAL CASE FILED AGAINST THE CORPORATE WHEN THERE IS NO RESPONSE FROM THE PARTY.
THE GIST IS THAT AFTER ACTUALLY SUPPLYING THE MATERIALS PARTY HAS USED UNFAIR MEANS AND FORGED DOCUMENTS TO GET THE STAY.WHAT STRONGEST ACTION CAN BE TAKEN AGAINST THE PARTY FOR FORGERY AND FRAUD.
IS CIVIL COURT COMPETENT TO AUTHORIZE A CRIMINAL CASE.
AMOUNT OF MONEY INVOLVED IS VERY HUGE FOR US AND IT HAS ALREADY DESTROYED OUR BUSINESS AND CIRCULATION BESIDES MENTAL TRAUMA.
WHAT PROVISIONS ARE THERE FOR SUCH FRAUDS.
THE ESSENCE IS THE TIME TAKEN BY THE COURT THOUGH WE HAVE EVERY DOCUMENT TO PROVE IT.CAN IT BE EXPEDITED.
WARM REGARDS TO ALL ON PANEL
PLEASE ADVISE
SACHIN SINGH THAKUR
dr g balakrishnan
(Expert) 13 August 2016
you issue the notice to the bank what is the term of agreement , abide by else you will proceed against the bank; false documentation forgery on the company would follow.
the banks have to be just impartial to the BG;
Your banker can issue the notice to the banker in question;
criminal case is involved; you can say you will give an indemnity bond if forged documents are original if not indemnity bond cannot be enforced.
Rajendra K Goyal
(Expert) 13 August 2016
The provisions regarding preventing stay from court need to be decided on merits.
Bank can not pay if stayed by the court.
Try to get the stay vacated, engage services of competent lawyer expert in the field.
If forge documents produced, prove the same before the court.
For any further advice full case file need to be referred.
Kumar Doab
(Expert) 13 August 2016
You may prefer to spend quality time with a very able counsel with all case related documents.
Your able counsel can opine after due examination and may strategise to fetch you some relief.
DR.VEDULA GOPINATH
(Expert) 14 August 2016
Mr.Sachin Thakur
1. If the stay is obtained by producing false and forged documents, stay can be vacated subject to your producing evidence.
2. Many Higher Courts(including SC) in India gave positive decisions for implementation of BG. Also it was held by courts that Bank Guarantee if not implemented Public will loose faith in Banking system.
3. In some of the cases Court asked the party (obliged to make payment) to deposit 50% before proceeding further with the matter.
4. You should approach H.C. for vacating the stay and give directions to Bank for payment.
5. You have yet another option of filing a creditors winding up petition against the company also, apart from resorting to arbitration subject to your contract.
Please furnish me with a copy of B.G. to comment further on the subject.
cs dr vedula gopinath advocate (high court) and arbitrator
vgnath@gmail.com m9866013121
Devajyoti Barman
(Expert) 14 August 2016
Though BG is strictly complied with and courts are loath to grant any stay on enforcement of BG, in certain cases though very rarely the BG can be stayed.
Your case even if the documents were orginal does not fulfil such criteria for grant of stay on BG.
Forging of documents further makes the matter compound albeit in your favour.
Now immediately file an IA/CAN in the high court asking for vacating of stay.
I am sure it would be granted.
Since I do not know the contents and order I can not make further comment on its merit.
rajagopal.s
(Expert) 16 August 2016
HI
The stay on BG can be vacated upon submitting to the court proof of delivery.
You should file an application in appeal/ High court to get the stay vacated and proceed further.
Need more details of the case/ order for us to provide the right advice.
cherukuri prasad
(Expert) 22 August 2016
You appointed a very incompetent advocate. Change him immediately. High Court has remedy for you. You should have challenged the order of the lower court immediately instead of filing a petition to vacate the stay. Criminal case can be filed immediately. IT is quite surprising how stay was granted when delivery challans and other relevant documents are there to prove your bonafides. It appears you may be suppressing some facts also. I stay in Hyderabad. Contact me for any help.
Sachin Thakur
(Querist) 01 September 2016
Seven dates have passed still no rejoinder filed.till rejoinder is filed,we cannot proceed to high court.Party is delaying the matter very easily.Burman Sir and Gopinath Sir,I read your replies but as per our advocate the High court will again refer to Civil court and then only vacate the stay.moreover there has been no response against our application of verifying the documents and getting forensic done.Party has till date neither filed the rejoinder,nor they have submitted the original documents.Don,t know what to do and where to approach as each day is difficult as a huge amount is involved and our total circulation is dead.
dr g balakrishnan
(Expert) 01 September 2016
BG cannot permit any fraud is the substance one needs to know.
DR.VEDULA GOPINATH
(Expert) 01 September 2016
Mr.Thakur
Please send me the stay order for study and further guidance to you. Also your couner to HC.
dr vedula gopianth advocate (AP HC) vgnath@gmail.com
