To:
The President of India
Acting through
The Controller of Stores,
South East Central Railway,
Bilaspur (C.G.) 495004
GUARANTEE BOND
In consideration of the President of India (hereinafter called “the Government”)
having agreed to exempt HOLMAN CLIMAX MANUFACTURING COMPANY
(hereinafter called “the said Contractor(s)”) from the demand under the terms and
conditions of an Agreement 06.08.5347.1.43000 dated 11TH November
2009 made between HOLMAN CLIMAX MANUFACTURING COMPANY
and SOUTH EAST CENTRAL RAILWAY, BILASPUR for security deposit for
due fulfillment by the said Contractor (s) of the terms and conditions contained in
the said
Agreement on production of a bank Guarantee for Rs 99873/- (Rupees Ninety
Nine Thousand Eight Hundred Seventy Three only) we State Bank Of India,
Titagarh (Indicate the name of the bank) (Hereinafter referred to as "the Bank") at
the request of HOLMAN CLIMAX MANUFACTURING COMPANY contractor(s)
do hereby undertake to pay to the Government an amount not exceeding Rs.
99873/- (Rupees Ninety Nine Thousand Eight Hundred Seventy Three only)
against any loss or damage caused to or suffered or would be caused to or suffered
by the Government by reason of any breach by the said contractor(s) of any of the
terms or conditions contained in the said agreement.
2. We State Bank Of India, Titagarh do here by undertake to pay the amounts
due and payable under this Guarantee without any demur, merely on a demand from
the Government stating that the amount claimed is due by way of loss or damages
caused to or would be caused to or suffered by the Government by reason of any
breach by the said Contractor(s) of any of the terms or conditions contained in the
said Agreement or by reason of the Contractor(s) failure to perform the said
Agreement. Any such demand made on the Bank shall be conclusive as regards the
amount due and payable by the Bank under this Guarantee. However, our liability
under this Guarantee shall be restricted to an amount not exceeding Rs 99873/-
(Rupees Ninety Nine Thousand Eight Hundred Seventy Three only).
3. We undertake to pay to the Government any money so demanded notwithstanding
any dispute or disputes raised by the Contractor(s)/Supplier(s) in any suit or
proceeding pending before any Court or tribunal relating thereto our liability under
this present being absolute and unequivocal.
The payment so made by us under this Bond shall be a valid discharge of our liability
for payment thereunder and the Contractor(s)/ Supplier(s) shall have no claim
against us for making such payment.
4. We State Bank Of India, Titagarh further agree that the Guarantee herein
contained shall remain in full force and effect during the period that would be taken
for the performance of the said Agreement and that it shall continue to be
enforceable till all the dues of the Government under or by virtue of the said
Agreement have been fully paid and its claims satisfied or discharged or till Sr.
Divisional Mechanical Engineer (Diesel) Office/Department Ministry of Railways
certifies that the terms and conditions of the said Agreement has been fully and
properly carried out by the said Contractor(s) and accordingly discharges this
Guarantee. Unless a demand or claim under this guarantee is made on us in writing
on or before the 13TH July 2012 we shall be discharged from all liability under this
guarantee scheme thereafter.
5. We State Bank Of India, Titagarh further agree with the Government that the
Government shall have the fullest liberty without our consent and without affecting in
any manner our obligations hereunder to vary any of the terms and conditions of the
said Agreement or to extend time of performance by the said Contractor(s) from time
to time or to postpone for any time or from time to time any of the powers exercisable
by the Government against the said Contractor(s) and to forbear or enforce any of
the terms and conditions relating to the said Agreement and we shall not be relieved
from our liability by reason of any such variation, or extension being granted to the
said Contractor(s) or for any forbearance, act or omission on the part of the
Government or any indulgence by the Government to the said Contractor(s) or by
any such matter or thing whatsoever which under the law relating to sureties would,
but for this provision, have effect of so relieving us.
6. This Guarantee will not be discharged due to the change in the constitution of the
Bank or the Contractor(s)/ Supplier(s).
7. We State Bank Of India, Titagarh lastly undertake not to revoke this
Guarantee during its currency except with the previous consent of the Government in
writing.
Dated ______ day of ___________ 20____
For State Bank Of India, Titagarh
