Cement, Energy and Environment

23 ['!Wl II ~ 3(i)) c. we. \name ofllle bat~kl (the " Bank'") at the request of the Successful Bid~r do hereby\undert 1 ~)etto pay to thelhe State an amount not exceeding INR [figures\ (Indian Rupees [wordsl ) ("Cnarantee . moun o secure obli~ations of the Succes ful Bidder under the Agreement on demand from the State on the terms and conditions herein contained herein. ~OW THEREFORE. the Bank hereby issues in favour of the State this irrevocable and unconditional payment bank guarantee (the "Guarantee"Jon behalf of the Successful Bidder in the Guarantee Amount: 1. The Bank for the purpose hereof unconditionally and irrevocably undertakes to pay to the State without any demur. reservation. caveat, protest or recourse. immediately on receipt of first wri tten demand from the State, a sum or sums (by way of one or more claims) not exceeding the Guarantee Amount in the aggregate without the State needing to prove or to show to the Bank grounds or reasons for such demand for the _sum specified therein and notwithstandmg any dispute or difference between the State and Successful B1dder on any matter whatc;oever. The Bank undertakes to pay to the State any money so demanded notwithstanding any dispute or disputes raised by the Successful Bidder in any suit or proceeding pending before any court or tribunal relating the reto the Bank's liability under this present being absolute and unequivocal. 2. The Bank acknowledges that any such demand by the State of the amounts payable by the Bank to the State shall be fi nal, binding and conclusive evidence in re::.pect of the amounts payable by Successful Bidder to the State under the Agreement 3. The Bank hereby waives the necessity for the State from demanding the aforesaid amounl or any part thereof from the Successful Bidder and also waives any right that the Bank may have of first requiring the State to pursue its legal remedies against the Successful Bidder. before presenting any written demand to the Bank for payme nt under this Guarantee. -l. The Bank further unconditionally agrees '' ith the State that the State shall be at liberty. without the Bank's consent and without affecting in any manner the Bank's obligation under this Guarantee. from time to time to: (i) vary and!or modify and of the terms and conditions of the Agreement: tiiJ extend and I or postpone the time for performance of the obligations of the Successful Bidder under the Agreement. or (iii) forbear or enforce any of the rights exercisable by the State agai nst the Successful Bidder under the terms and conditions of tre Agreement. and the Bank shall not be relieved from its liability by reason of any such act or omission on the part of the State or any indulgence by the State to the Successful Bidder or other thing whatsoever which under the law re lating to sureties would but for this provision. have the effect of relieving the Bank of its obligations under this Guarantee. 5. Any payment made hereunder shall be made free and clear of and without deduction for. or on account of. any present or future taxes. levies. imposts. duties, charges. fees. commissions. deductions or withholdings of any nature whatsoever. 6. 7. 8. The Bank agrees that State at its option shall be entitled to enforce this Guarantee against the Bank, as a principal debtor in the first instance without proceeding at the first instance against the Successful Bidder. The Bank further agree that the guarantee herein contained shall remain in full force and effect during the period that specified in the Agreement and that it shall continue to be enforceable till all the obligations of the Successful Bidder under or by virtue of the s. .1.id Agreement with respect to tre Performance Security have been fully paid and its claims satisfied or discharged or till the State certifies that the terms and conditions of the Agreement with respect to the Performance Security have been fully and properly carried out by the Successful Bidder and accordingly di scharges this guarantee. Notwithstanding anything contained herein. unless a demand or clajm under this guarantee is made on the Bank in writi ng on or before the Expiry Date the Bank shall be discharged from all liability under this guarantee trereafter. The payment so made by the Bank u-nder this Guarantee shall be a valid discharge of Bank' s liability for · payment thereunder and the State shall have no claim against the Bank for making such payment. 9. This Guarantee is subject to the laws of India. Any suit, action, or other proceedings arisi ng out of this Guarantee or the subject matter hereof shall be subject to the exclusive jurisdiction of courts at the State of !respective State! . 10. The Bank has the power to issue this Guarantee in favour of the State. This guarantee will not be discharged due to the change in the constitution of the Bank II. The Bank undertakes not to revoke this Guarantee during its currency except with the previous consent of the State in writing. 28 -~