Specifications

1
Annexure-XIII(b)
PEROFORMA OF BANK GUARANTTE FOR OBTAINING 100% PAYMENT AGAINST
DISPATCH DOCUMENTS (
TO BE EXECUTED ON THE APPROPRIATE VALUE OF NON-
JUDICIAL STAMPED PAPERS)
This agreement is made this _____________day of ________________between M/S
(Banker’s Name)______________________through --------------------designation of the person
signing the Bank Guarantee on behalf of the Guarantor), a company registered under the
Companies Act, 1956/Banking Statute/ a body corporate constituted under the Banking
Companies (Acquisition and Transfer of undertaking) Act V or 1970 having its registered office
at ________________hereinafter called the “Guarantor” which expression shall unless
repugnant to the context or meaning thereof include its successors and assigns of the first
part, M/S ___________________through (designation of the person signing The Bank
Guarante ________________________(on behalf of the supplier) a company registered under
companies Act, 1956, having its registered office at (Address of Registered
office____________________) hereinafter called the “Supplier” which expression shall unless
repugnant to the context or meaning thereof include its successors and assigns of the second
part and the Bhakra Beas Management Board, Chandigarh through Chief
Engineer/Generation, a statutory body constituted under Section 79 (1) read with Section-80
(6) of the Punjab Re-organisation Act, 1966 hereinafter called the ‘Purchaser’ which
expression shall unless repugnant to the context or meaning thereof include its successors
and assigns of the third part.
Whereas the supplier had, interalia, agree to supply to the Purchaser
_____________________(hereinafter called the said “system”) on the terms and conditions
contained in the Purchase Order No.__________________ dt.___________ (hereinafter
_________________ called the said “Purchase Order”.) placed by the Purchaser on the
supplier and unconditionally accepted by the supplier.
And whereas under clause 14 of Terms and Conditions of Purchase Order (Annexure-
XII) of the said Purchase Order the supplier is required to furnish a Bank Guarantee for a sum
Rs._______________ (Rupees________________ )being the_______ value of all the
consignments of the said system on account of retention money, which but for this guarantee
would be withheld by the Purchaser till such time that the said system contained in the
purchase order is received in good condition by the Purchaser and in accordance with the
specifications of the same and the said system has given satisfactory performance during its
warranty period as per clause 12 of Terms and Conditions of Purchase Order (Annexure-XII)
of the said purchase order and also till such time that any claim of the Purchaser is pending
against the supplier, to guarantee the payment of the retention money on bill submitted against
supply of the said system on order from time to time upto a maximum amount of the sum of
Rs.___________ (Rupees____________________)
And whereas at the request on the supplier the Purchaser has agreed not to retain 10%
of the contract price of all the consignments and in lieu thereof to accept a Bank Guarantee
equivalent to the 10% of the contract price of all the consignments from the guarantor for the
aforesaid purposes & for the due performance of the said purchase order by the supplier on
the terms & conditions herein contained. Now this deed, witnesseth and it is hereby agreed by
and between the parties hereto as follows:
The Guarantor hereby guarantees to the Purchaser the quality, workmanship and
design of the said system in accordance with the prescribed specifications and the terms of the
said purchase order its satisfactory performance during the warranty period as per clause 12 of
Terms and Conditions of Purchase Order (Annexure-XII) of said purchase order and agree to
indemnify and keep indemnified the purchaser to the extent of Rs._____________ in the
aggregate against all losses, damages, cost, charges and expenses which may be suffered or
incurred by the purchaser on account of non-receipt of the said system in good condition or on
account of any defect in the said system or on account of any breach on the part of the
supplier of any of the terms and conditions of the said purchase order in the supply of and
during the warranty period of the said system. The guarantor further agrees that the Purchaser
shall be the sole judge whether or not the supplies have been made according to the prescribed
specifications, design and workmanship and laid down in the said purchase order. and whether
or not the said system has been received in good condition by the purchaser and whether or
not the said system has given satisfactory performance during its warranty period and whether