BANK GUARANTEE FORMAT
The President of
Acting through Ministry of Coal
Whereas M/s. ______________________(Name of Allocattee Company), having Registered Office at _________________(Address), hereinafter called the Company, agrees for allocation of _________________(Name of the captive block) block made by the President of India acting through Shri K S Kropha, Joint Secretary and Coal Controller, Ministry of Coal hereinafter called the Central Government in the State of ______________(Name of State) for captive mining of coal on the terms and conditions contained in their letter No. ________________________ dated _____________ and the Company as per clauses _____ and _____ in the conditions which inter alia are subject matter of the letter of allocation herein referred, agrees to furnish this bank guarantee for an amount of Rs. _______ (in figures) (Rupees ____________ (in words) equivalent to one year royalty amount based on ________(grade of coal) grade capacity of coal assessed by CMPDIL at ______ (mine capacity) mtpa at an weighted average royalty @ Rs. __________(in figures) per tonne.
We, _________ (Name of the bank) Bank, ______________________(Branch, City) Branch hereinafter called the Bank in consideration of the premises, at the request of the Company, do hereby guarantee and undertake to pay without demur to the Central Government forthwith on demand at any time upto _____________ (date at least one year from date of Letter of allocation to be renewed, till exhausted or rated capacity reached) any money or monies not exceeding a total sum of Rs. _____________(in figure) (Rupees __________________________)(in words) as may be claimed by the Central Government to be due from the Company by way of shortfall in royalty due to failure by the Company in the observance and performance as per clause _____ of the terms and conditions of the said letter of allocation. It is hereby agreed and acknowledged that the decision of the Central Government as to whether any money is payable by the Company to the Central Government or whether the Company has made any such default or defaults as aforesaid and the amount or amounts to which the Central Government is entitled to by reason thereof will be binding on the Bank and the Bank shall not be entitled to ask the Central Government to establish its claim or claims under this Guarantee or to claim any such amount from the company in the first instance but shall pay the same to the Central Government forthwith on demand without any demur, reservation, recourse, contest or protest and/or without any reference to the Company. Any such demand made by the Central Government on the Bank shall be conclusive and binding notwithstanding any difference between the Central Government and the Company or any dispute pending before any Court, Tribunal, Arbitrator or any other authority.
The Bank further undertake not to revoke this Guarantee during its currency except with the previous consent of the Central Government in writing and this Guarantee shall continue to be enforceable till the aforesaid date of its expiry or the last date of the extended period agreed upon as the case may be unless during the currency of the Guarantee all the dues of the Central Government under or by virtue of clause _____ of the said letter of allocation have been duly paid and its claims satisfied or discharge or the Central Government certifies that the terms and conditions of the said letter of allocation have been fully carried out by the company and accordingly discharged the Guarantee.
Subject to the maximum limit of the Banks liability as aforesaid, this Guarantee shall cover all claim or claims of the Central Government against the Company from time to time arising out of or under condition number_______ of the said letter of allocation and in respect of which the Central Governments demand or notice in writing be served on the Bank before the date of expiry of this Guarantee mentioned above or of further extended period agreed upon, as the case may be.
The Guarantee shall not be affected by any change in the constitution of the Company or any extension or forbearance to the company by the Central Government and the Bank will ensure for and be available to and Guarantee enforceable by the Central Government.
Notwithstanding anything contained herein :-
i. Our liability under this Bank Guarantee shall not exceed Rs. ________(In figures) (Rupees ___________________________________) (in words).
ii. This Bank Guarantee shall be valid till _______________(date).
iii. We are liable to pay the guaranteed amount or any part thereof under this Bank Guarantee only if you serve upon us a written claim or demand on or before ________________.
The Bank has power to issue this Guarantee under the statute and the undersigned has full power to sign this Guarantee on behalf of the Bank.
Dated this day of 2005 at