In consideration of Gaurav & Saurabh Company Ltd., a company incorporated underthe
Companies Act, 1956 and having its registered office at …………….(hereinafter called the said
Company) having at our request agreed to accept this Guarantee in lieu of cash deposit required
from…………….for making…………….% payment against Railway Receipt and title to goods
through Bank by the Company for the due ……………………made between …………….and the
Company for the supply of…………….(hereinafter called “said agreement”) during the period
commencing from…………….and ending on …………….or the extended period, if any, to
indemnify and keep indemnified the Board, to the extent of Rs . …………….representing
…………….% of the value of contract against any loss or damages caused to or suffered by the
Company by reason of any breach of the said …………….or any terms and conditions of the said
agreement, we…………….Bank…………….Branch . …………….further agree that the guarantee
herein contained shall remain in full force and effect upto and inclusive of the ………………. said
date referred to above or the expiry of the extended period, if any, and that it shall continue to be
enforceable till all the dues of the Company under or by virtue of the said agreement have been
fully paid and its claims satisfied or discharged or till ……………. certified that the terms and
conditions of the said agreement have been fully and properly carried out by the said and
accordingly discharges the guarantee subject however, that the Company shall have no rights
under this guarantee after the expiry of ……….. years from the date of its
execution.
2. Notwithstanding anything contained in the foregoing, our liability under this guarantee is
restricted to Rs . ……………………
3. Our guarantee shall remain in force until unless a suit or action to enforce a claim under the
guarantee is filed against us within …………….months from that date, all your rights under this
guarantee shall be forfeited and we shall be relieved and discharged from all liability hereunder.
4. We, the Guarantor Bank undertake to pay the amount guaranteed hereunder or such part
thereof as required within one week of the sum being demanded by the Company without demur
and objections and without reference to the suppliers and without questioning the right of the
Company to make such demand or the propriety or legality of the demand.
5. We…………….Bank further declare and undertake not to revoke this guarantee during its
currency, except with the previous consent of the Company in writing.
Dated the…………….day of…………….20