State-run lender Bank of Baroda (BoB) has moved the Supreme Court challenging the orders passed by the Calcutta High Court in the matter of a bank guarantee issued on behalf of Simplex Projects Ltd.
“The bank has, after seeking legal advice, decided to exercise its rights available under law, by preferring a challenge against the aforesaid orders passed by the Hon’ble Calcutta High Court before the Hon’ble Supreme Court of India,” BoB said in a statement.
The matter pertains to a bank guarantee of ₹6.97 crore furnished by Bank of Baroda to Indian Oil Corporation (IOCL) on behalf of Simplex Projects Limited.
The Calcutta High Court had directed Reserve Bank of India for considering appropriate steps against Bank of Baroda including cancellation of banking licence for failing to honour the bank guarantee.
“IOCL had raised a demand to encash the amounts under the bank guarantee, which the bank did not release since the bank guarantee was not valid on the date of its invocation,” BoB said.
