Khaitan & Co has represented Man Industries (India), which has through ICICI Bank issued a counter-guarantee to a bank in Iraq that in turn issued a bank guarantee to an entity, State Company for Oil Projects, in Iraq.
Although Man Industries completed performance of the contract, State Company for Oil Projects refused to release the bank guarantee. In view thereof, a suit was filed in the Bombay High Court.
The Bombay High Court passed an interim order of injunction against payment being made under the bank guarantee and counter-guarantee.
Partner Raj Panchmatia represented the client on the transaction.