kaushik sircar (MD) 14 October 2011
I had provided a bank guarantee to NHAI through Union bank of India, which was vaild upto 12 Oct 2011 including claim period. The bank guarantee was against my FD of 20 lacs. The NHAI has not asked for extension and neither issued release of the bank guarantee except a performance letter stating that the project has been terminated satisfactorily and our performance has been good.
Can the bank release the FD back to me since there has been no claim on the guarantee? Kindly advice.
kumar t v s (advocate) 14 October 2011
The original BG is to be returned to the bank by NHAI. Since the NHAI is satisfied with your performance, project is terminated and the period has expired, you may demand the NHAI to return the original BG to bank.
kaushik sircar (MD) 14 October 2011
Thank you for the advice.
G.L.N. Prasad (Retired employee.) 15 October 2011
The FD return depends on restrictive clause and due date specified. When there is due date specified ,after due date the BG stands terminated and FDR can be released by Bank giving formal notice to beneficiary.l
Before due date if BG has to be cancelled, return of original Bank guarantee is essential.
However several banks still ignore RBI/Court judgments and insist for return of original bank guarantee and placing several hurdles to customers.
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