Anil Ambani group firm denied permission to encash Maytas' bank guarantees
27 May 2009
The Supreme Court has denied Anil Ambani group firm Utility Energy Tech Engineers Pvt Ltd permission to encash bank guarantees provided by its subcontractor Maytas Infrastructure after the latter defaulted on a highway expansion project.
Maytas Infrastructure had produced performance guarantees from ICICI Bank for the highway project in Tamil Nadu and the Bombay high court, in its order dated 15 May, had asked the bank to deposit Rs20 crore it underwrote by 18 June.
Later, on 21 May, the high court gave ICICI Bank time till 18 June to deposit the performance guarantee amount.
Utility Energytech had, in its appeal, sought direct payment of the amount to the beneficiary under the contract rather than depositing the money with the court.
While a division bench of the Supreme Court headed by Justice Markandey Katju refused to go into the merits of the impugned interim orders of the High Court of 15 and 21 May, it asked the high court to hear the matter on 8 June, when it reopens after the summer vacation.
The case would be heard by "the appropriate bench" of the high court and no adjournments should be given to the parties on that date, the SC further clarified.
