Vidarbha Industries Association v. Axis Bank (case)

In the case of Vidarbha Industries Association v. Axis Bank, the court addressed whether a bank could refuse to honor a bank guarantee due to alleged procedural lapses. The court held that once a bank issues a guarantee in favor of a third party, it is bound by its terms and must honor it, unless there is clear evidence of fraud or misrepresentation. The decision emphasized the importance of maintaining the integrity of bank guarantees in commercial transactions, affirming that such guarantees are independent contractual commitments.