g v simha (Proprietor) 02 June 2010
Can any a bank invoke a bank guarantee after the validity period upon written communication from the party to whom the BG is issued?
Is it incumbent for the supplier to get the performance BG validity extended , even if the party , to which a Machine has been supplied is not ready for comissioning within the validity period of the BG?
Rgds
G VS
ramarao v b (director - marketing) 02 June 2010
apart from validity period, the BG shall also give time ( say 3 months) for invoking the BG. if this period is not elapsed then the party can invoke BG, even though on the face it is expired. If no such clause exists, bank can't invoke the BG unless it is renewed.
Basavaraj (Asst, Manager-Legal) 02 July 2010
No bank wouldaccpet to invoke BG after expiry of its date. Banks only bound to invoke BG upon written consent of party that within the period of B.D.. No you cannot or bank cannot invoke the BG upon expiry. With written commincation of the party Banks may extend the BG period till furhter period.
Satya Narayana Palukuru (Advocates & Mediators.) 05 July 2010
Hi
verfy clauses with in the guarentee first it gives answer
Basavaraj (Asst, Manager-Legal) 06 July 2010
Yes dear ,
As well as you can do verfiy the clauses of B.G., If contains what siad then its okay.
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