Bengaluru: A city commercial court has dismissed Larsen and Toubro (L&T) Limited’s plea to restrain the state-owned K-RIDE from invoking or encashing bank guarantees given under the contracts pertaining to certain infrastructure projects of the Bengaluru Suburban Railway Project (BSRP), between Heelalige and Rajanukunte of Corridor-4.L&T furnished a mobilisation bank guarantee worth Rs 28.6 crore and another performance bank guarantee worth Rs 31.2 crore. However, the commercial court provided liberty to L&T to approach the arbitral tribunal constituted to adjudicate these disputes and seek similar relief. It also provided interim protection to L&T against invocation of bank guarantees until Jan 24, 2026, after which the court ordered such protection would stand automatically vacated. The commercial court noted that documents reflected that, despite work front availability, the applicant (L&T) could not complete substantial work due to several hindrances or show progress. On the contrary, the applicant company itself terminated the contract unilaterally via a notice dated July 28, 2025, which indicated that the balance of convenience did not lie in favour of the applicant.
