Bank Guarantee Format for Security Deposit - Free Download
4.1,
2970
votes
Please vote for this template if it helps you.
BANK GUARANTEE FORMAT FOR SECURITY DEPOSIT
The President of India
(acting through the Director, Purchase & Stores)
Department of Atomic Energy,
Government of India,
V.S.Bhavan,
Mumbai- 400 094
In consideration of the President of India acting through the Director, Purchase & Stores, Directorate of Purchase
and Stores, Department of Atomic Energy, (hereinafter called the "the Government") having agreed to exempt M/s.
_______ (hereinafter called the said contractor/s) from the demand, under the terms and conditions of an agreement
No. _____ dt.______ made
between the President of India acting through the Director, Purchase & Stores,
Directorate of Purchase and Stores, Department of Atomic Energy, and M/s. _________ for (hereinafter called the
said agreement), of security deposit for the due fulfillment by the said contractor(s) of the terms and conditions
contained in the said agreement, on production of Bank guarantee for Rs. ____ (Rupees _______ only), we
(hereinafter referred to as "the bank") the request of M/s. __________contractor(s) do hereby undertake to pay to
the Government an amount not exceeding Rs. (Rupees______ 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 and conditions contained in the said agreement.
2. We,______(indicate the name of the bank) do hereby undertake to pay the amount due and payable under this
guarantee without any demur, merely on a demand from the Director, Purchase and Stores, Directorate of Purchase
and Stores, Department of Atomic Energy, on behalf of Government stating that 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 and 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 nor exceeding Rs.__________
3. We, _________ (bank) undertake to pay to the Government any money so demanded not withstanding any
dispute or disputes raised by the contractorls 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 shall have no claim against us
for In11king such payment.
4. We _________ (the bank) 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
claim satisfied or discharged or till the Director, Purchase & Stores of the Department of Atomic Energy certified
that the terms and conditions of the said agreement have been fully and properly carried out by the said
contractor(s) and accordingly discharges this guarantee. Unless a demand or a claim under this guarantee is made
on us in writing on or before we shall be discharged from all liability under this guarantee thereafter.
5. We, ___________ (bank) 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 for 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 commission on the part of the Government or any indulgence by the Government to
