INDIAN BANK vs M/S.RESHMA PRODUCTIONS — C.A. No. 7386/2000

Case Summary: Indian Bank v. M/S. Reshma Productions Outcome: The Supreme Court allowed Indian Bank's appeal on December 15, 2000, setting aside the High Court's order that directed the Bank to deposit Rs. 12,15,400 or continue a bank guarantee. The Court held that the Bank cannot be compelled to extend the guarantee without the judgment debtor (Reshma Productions) performing its corresponding obligation to request renewal and execute necessary documents. Any money previously deposited in court shall be returned to the Bank upon application. Key Ruling: The Court found that the High Court erred in extending the bank guarantee beyond April 12, 1994 (when the original extension expired) without the debtor's fresh obligation, and rejected the argument that the Bank's negligence in creditworthiness investigation could obligate continued performance. This case analysis is maintained by casestatus.in based on publicly available court records.