Bank of Baroda (BoB) has challenged the orders passed by the Calcutta High Court in the matter of a bank guarantee (BG) issued on behalf of Simplex Projects before the Supreme Court of India.
The bank has, after seeking legal advice, decided to exercise its rights available under law by preferring a challenge against the aforesaid orders passed by the Calcutta High Court before the Supreme Court of India, according to a statement issued by BoB.
According to an agency report, the Calcutta High Court has directed the Reserve Bank of India to consider appropriate steps against Bank of Baroda (BoB), including revoking its licence or authority to carry on with banking business, if necessary, for failing to honour a bank guarantee.
The matter pertains to a bank guarantee of ₹6.97 crore furnished by BoB to IOCL on behalf of Simplex Projects Ltd. “IOCL had raised a demand to encash the amounts under the bank guarantee, which the bank did not release since the bank guarantee was not valid on the date of its invocation,” the statement said.
BoB assured its customers and stakeholders that it is business as usual for the bank. The bank said it will take appropriate steps and comply with all legal and regulatory requirements.
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