GUARANTEE BOND
(In lieu of performance Security Deposit)
(To be used by approved Scheduled bank))
1. In consideration of the Governor of Chhattisgarh (here in after called the government having
agreed to exempt ............................................. (Herein after called the contractor(s) from the
demand under the terms and conditions of an agreement dated .......................... made
between .................................. for work (Name of work) ................................................. (here in after
called the said Agreement) of security deposit for the due fulfilment by the said contractor (s) of the
terms and conditions contained in the said agreements on production of a bank Guarantee for
Rs. ............................................. Rupees ................................ Only we.
(.)..................................................( hereinafter referred to as " the bank (at the request the said
contractor (s) do here by undertake to pay the Govt., an amount not exceeding
Rs ............................................ against any loss or damage caused to or would be caused to or
suffered by the Government, by reasons of any breach by the said contractor (s) of the terms or
conditions contained in the said agreement.
2. We (.) .............................................. do here by undertake to pay the amount due and payable
under this guarantee without any demur merely on demand from the Government stating the
amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the
Government by reason of breach by the said contractor (s) of any of the terms or conditions
contained in the said agreements or by reasons 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 ............................................ .
3. We undertake to pay to the Government any money so demanded not with standing any dispute
or disputes raised by the contractor (s) in any suit or proceedings 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 there
under and the contractor (s) shall have no claim against us for making such payments.
4. We (.) ............................................... 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 said
agreement and that it shall continue to be enforce able till all the dues o the Government under or
by virtue of the said agreement have been fully paid and its claims satisfied or discharged or till the
Executive Engineer P.W.D. certified that the terms and conditions of the said agreement have been
fully and property carried out by the said contractor (s) and terms and conditions of the said
agreement have been fully and property carried out by the said contractor (s) and accordingly
discharged this guarantee, unless a demand to claim under this Guarantee is made on us in writing
on or before the (here indicate a date which falls 9 months beyond the due date of completion of
the work) .................................................... we shall be discharged from all liability under the
guarantee.
5. We (.) .................................................................... further agree with the government that the
Govt, shall have the fullest liberty without our consent and with out affecting in any manner our
obligation here under 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 for
time to time any of the powers exercisable by the Gove. against the said contractor (s) and to for
bear or enforce any of the terms and conditions relating to the said agreement and we shall not be
relieved from our liability by reasons of any such variations. or extension being granted to the said
contractor (s) or for barnacle, act or commission on the part of the Gove. or any indulgence by the
Govt. to the said contractor (s) or by any such what so ever which under the lay relating to sureties
would but for this provision relieving us.
6. This guarantee will not be discharged due to the change in the constitution of the Contractor (s).
7. We (.) lastly under take not to revoke this guarantee during its currency except with the previous
consent of the Government inwriting :-
Dated the ............................................................................. day
of ............................. for () .............................................................
(>) indicate the Name of the Bank ......................................................................
