InvestorQ : Why has Bank of Baroda challenged a High Court order on its guarantee given for Simplex Projects?
ishika Banerjee made post

Why has Bank of Baroda challenged a High Court order on its guarantee given for Simplex Projects?

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Niti Shenoi answered.
2 years ago
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Bank of Baroda has moved the Supreme Court challenging an order passed by the Calcutta High Court regarding a bank guarantee issued by BOB on behalf of Simplex Projects Ltd. It may be recollected that the Calcutta High Court had asked the RBI to take appropriate steps against BOB including cancelling its banking license for not honouring a bank guarantee. The guarantee was issued on behalf of Simplex by BOB and invoked by IOC. BOB had furnished a Rs.6.97 crore unconditional guarantee on behalf of Simplex as security deposit for works at the Bongaigaon Refinery owned by IOCL. The bank has stated that the refusal to honour was in the larger interests of stakeholders of BOB. It has decided to approach the Supreme Court on this issue.

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