Simplex Projects case: Bank of Baroda moves SC against Calcutta HC's order

Bank of Baroda (BoB) has moved the Supreme Court (SC) against the Calcutta High Court’s (HC’s) order in the matter of a bank guarantee issued on behalf of Simplex Projects. 

The matter pertains to a bank guarantee of Rs 6.97 crore furnished by BoB to Indian Oil Corporation (IOC) on behalf of Simplex Projects. IOC had demanded the amount be encashed under the bank guarantee, which the bank did not release since the guarantee was not valid on the date of invocation. 

BoB, in a statement, said after seeking legal advice, it had decided to exercise rights available by preferring a challenge against orders passed by the Calcutta HC. BoB approached SC on Monday. The HC had asked the Reserve Bank to consider appropriate steps against BoB, including revoking licence or authority to carry with banking business, for failing to honour a bank guarantee.