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Equivalent Citation: 2004(2)ALD(C ri)305, 2004(2)ALT(C ri)360, IV(2004)C C R368, 2004C riLJ4100
The complainant was supposed to make the payment through a letter of credit. In view
of certain administrative problems for arranging letter of credit, the complainant
officials had further discussions with the officials of M/s. Diamond Cables Limited and it
was mutually agreed in writing that the consideration money should be paid within 45
days from the date of supply and that the Purchase Order should be backed-up by Bank
Guarantee. M/s. Diamond Cables Limited shall be entitled to invoke the Bank
Guarantees only in the event of the complainant-company failing to pay the
consideration money within the agreed period. The Purchase Order dated 3-8-98 was
amended to reflect the above terms of payment of purchase consideration money vide
letter of amendment dated 4-12-98 and which changes were accepted by M/s. Diamond
Cables Limited vide their letter dated 10-12-98. As per the terms of the amended
Purchase Order the complainant-company had furnished the Bank Guarantees for Rs.
203.00 Lakhs (Three Bank Guarantees) issued by State Bank of India, Industrial Finance