Legal14 May 2026, 02:02 pm
Vishnu Prakash R Punglia: Court Stays Bank Guarantee En-cashment
AI Summary
Vishnu Prakash R Punglia Ltd's JV, VPRPL-KSIPL BKN JV, received a court order (SB Civil Writ Petition No. 10651/2026) preventing the encashment of a bank guarantee related to a contract for the Bikaner Railway Station upgrade. This follows a termination notice from North Western Railway. The court order effectively puts a hold on the forfeiture of a performance guarantee worth ₹191.215 million and a security deposit of ₹8.257 million. The company had filed a writ petition requesting the quashing of the contract rescission order.
Key Highlights
- Court order prevents encashment of bank guarantee for VPRPL-KSIPL BKN JV.
- The bank guarantee is related to the Bikaner Railway Station upgrade project.
- Financial implication is NIL due to the court's stay order.
- Forfeiture of ₹191.215 million performance guarantee and ₹8.257 million security deposit is stayed.
- Company filed writ petition against contract rescission and bank guarantee encashment.