Forcing minimum claim period of 1 year on bank guarantees wrong, says Delhi HC

As per the court order, PNB’s stand is due to letters issued by IBA on December 12, 2018, to its member banks, stating that if a bank issues a claim period of less than one year on top of the guarantee period then such a bank guarantee would not have the benefit of Exception 3 to Section 28 of the Contract Act.

from Banking/Finance-Industry-Economic Times https://ift.tt/3lezK6c