Court cannot decide disputed questions of fact under Art. 226 of the Constitution of India, #indianlaws

The Supreme Court has held that the bank guarantee is an independent contract between the guarantor-bank and the guarantee-appellant. The guarantee is unconditional. Though the performance guarantee is against the breach by the lead promoter, viz., the first Respondent, but between the bank and the Appellant, the specific condition incorporated in the bank guarantee is that the decision of the Appellant as to the breach is binding on the bank. The justifiability of the decision is a different matter between the Appellant and the first Respondent and it is not for the High Court in a proceeding under Article 226 of the Constitution of India to go into that question since several disputed questions of fact are involved.

Gujarat Maritime Board vs. L & T Infrastructure Development Projects Ltd. and Ors. 

Civil Appeal No.  9821  Of 2016