Bank Guarantees – Legality of Timelines for ‘Assertion of Claim’ and ‘Enforcement of Claim’
2/10/2021 0:00 News & Articles
Read the article “Bank Guarantees – Legality of Timelines for ‘Assertion of Claim’ and ‘Enforcement of Claim‘” authored by our Disputes Partner, Milanka Chaudhury & Associate, Chaitra Bhat published on LiveLaw.
“This has become a cause of concern for the business community as well as the banking industry as keeping a Claim Period of one year, especially in BGs where the Validity Period itself is less than one year, invites a host of additional issues such as increase in unwanted costs, funds deposited in the form of margin money are locked in for a longer period, there is surge in working capital requirements, the liability of the bank is also extended, which all in all creates a discouraging environment for both the borrowers and the banking industry.”
Read the full article here.