State-owned Bank of Baroda (BoB) on Tuesday said it has moved the Supreme Court against an order passed by the Calcutta High Court in a matter related to a bank guarantee issued on behalf of Simplex Projects Ltd.
A bank guarantee of Rs 6.97 crore was furnished by BoB to Indian Oil Corporation (IOCL) on behalf of Simplex Projects.
IOCL had raised a demand to encash the amounts under the bank guarantee, which the lender did not release since the guarantee was not valid on the date of its invocation.
Earlier this month, the Calcutta High Court directed Reserve Bank to consider appropriate steps against BoB, including revoking its licence or authority to carry on with banking business, if necessary, for failing to honour the bank guarantee.In a statement on Tuesday, BoB said the bank, after seeking legal advice, decided to exercise its rights available under law, by preferring a challenge against the order passed by the Calcutta High Court before the Supreme Court of India. BoB is second largest bank and its distribution network, includes over 9,500 branches.