Legal Question in Banking Law in India

banking

dear sir,

The below question pertains to indian Territory particularly related to issuance of Bank Guarantee on valid stamp paper if not what is the consequences. i.e

What is the Minimum & Maximum stamp paper (NON-Judicial Stamp paper) required for issuance of BANK GUARANTEE. Will it be sufficient for issuance of BG on maximum of Rs 200/- Non-Judicial Stamp paper. For example

If "x" Bank is issuing a Bank Guarantee (For short BG) on behalf of its customer "B " to "C" for sum of Rs 2 lacs and in this connection the bank should give the BG on how much Non judicial Stamp paper. Is there any value tariff required as per Stamp Act.

My questions can be answered as under

1. What is the minimu & maximum value of Non judicial stamp paper require for issuance of BG under stamp Act.

2. The stamp paper should be purchased by Bank alone or even party / CUSTOMER purchase the Non- JUDICIAL STAMP PAPER i.e "B" in the above case.

3. If the amount / value of Stamp paper is less in issuance of BG --can it be valid or straight away to be rejected.

4. If we have accepted the BG on less stamp paper what will be the causes.

5. Under what provision a SUIT can be filed for defult of BG.

6. Can you please tell us in brief about BG particularly before accepting it from the party

1 Answer from Attorneys

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