Delhi HC Refuses To Stay $1053 Million Bank Guarantee Encashment

The Delhi High Court refused to stay the encashment of a USD 1.053 billion bank guarantee in a dispute arising from a Mozambique coal mine project. The Court reaffirmed the settled principle that bank guarantees constitute independent contracts and courts should rarely interfere unless fraud or irretrievable injustice is demonstrated. The ruling strengthens commercial certainty in international infrastructure projects and reinforces India’s pro-enforcement stance in banking and contractual disputes.