GUARANTEE BY THE BANK ON BEHALF OFA CONTRACTOR IN LIEU OF CASH DEPOSIT
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