Hemas Marketing (Pvt) Ltd. v. Chandrasiri and Others – sllr 1994 volume 2 page 181

In Hemas Marketing (Pvt) Ltd. v. Chandrasiri and Others, the court addressed the enforceability of bank guarantees and whether an interim injunction restraining payment under such guarantees was appropriate. The central issues concerned the independent nature of bank guarantees, the permissible scope for judicial interference with payment obligations under such instruments, and the standards for granting injunctions in this context. It was held that bank guarantees are autonomous commercial obligations and should be honoured according to their terms, irrespective of disputes under the underlying contract, except in the instance of established fraud with prior notice. Citing relevant authorities, it was determined that the interim injunction issued by the District Judge lacked sufficient gr