GUARANTEE
BY THE BANK ON BEHALF OFA CONTRACTOR IN LIEU OF CASH DEPOSIT [CD1]
In
consideration of Gaurav & Saurabh Company Ltd., a company incorporated
underthe Companies Act, 1956 and having its registered office at
…………….(hereinafter called the said Company) having at our request agreed to
accept this Guarantee in lieu of cash deposit required from…………….for
making…………….% payment against Railway
Receipt
and title to goods through Bank by the Company for the due
........................made between …………….and the Company for the supply
of…………….(hereinafter called "said agreement") during the period
commencing from…………….and ending on …………….or the extended period, if any, to
indemnify and keep indemnified the Board, to the extent of Rs .
…………….representing …………….% of the value of contract against any loss or damages
caused to or suffered by the Company by reason of any breach of the said
…………….or any terms and conditions of the said agreement,
we…………….Bank…………….Branch . …………….further agree that the guarantee herein
contained shall remain in full force and effect upto and inclusive of the
................... said date referred to above or the expiry of the extended period,
if any, and that it shall continue to be enforceable till all the dues of the
Company under or by virtue of the said agreement have been fully paid and its
claims satisfied or discharged or till ................ certified that the
terms and conditions of the said agreement have been fully and properly carried
out by the said and accordingly
discharges the guarantee subject however, that the Company shall have no rights
under this guarantee after the expiry of
........... years from the date
of its execution.
2.
Notwithstanding anything
contained in the foregoing, our liability under this guarantee is restricted to
Rs . ........................
3.
Our guarantee shall remain
in force until unless a suit or action to enforce a claim under the guarantee
is filed against us within …………….months from that date, all your rights under
this guarantee shall be forfeited and we shall be relieved and discharged from
all liability hereunder.
4.
We, the Guarantor Bank
undertake to pay the amount guaranteed hereunder or such part thereof as
required within one week of the sum being demanded by the Company without demur
and objections and without reference to the suppliers and without questioning the
right of the Company to make such demand or the propriety or legality of the
demand.
5.
We…………….Bank further declare
and undertake not to revoke this guarantee during its currency, except with the
previous consent of the Company in writing.
Dated
the…………….day of…………….20
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