C and C Construction Ltd. vs. Power Grid Corporation of India Ltd. MANU/NL/0274/2021
The firm represented the Ministry of External Affairs in these proceedings before NCLAT, New Delhi which challenged refusal by the Bank to honour Bank Guarantees worth more than 100 crores issued by a Joint Venture (JV) of two Companies, one of which was facing insolvency proceedings before NCLT, New Delhi. The JV was a contractor engaged to complete part of the work with regard to the strategically important Kaladan Multi-Modal Transit Transport Project. After considering the law and various judgments, the NCLAT held that even during moratorium the banks can encash the bank guarantees issued towards performance or mobilization advance.
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