Schedule D

Bank Guarantee Format

1. In consideration of
Continental Engineering Corporation, a Foreign Company, with
limited liability, duly registered with the Registrar of Companies, NCT of Delhi & Haryana,
having its principal office at Race Course Metro Station, Tighlak Crescent Park, Tughlak
Road, New Delhi 110 011 or CEC International Corporation (India) Private Limited
having its registered office at Race Course Metro Station, Tighlak Crescent Park, Tughlak
Road, New Delhi 110 011 (hereinafter referred to the Contractor) having agreed to
award the works relating to [Nature of Works] at its Project [Project Name] for
[Define Project] to M/s. [Sub-Contractor Name] , pursuant to the Work Order No.
[Number] dated [Date] (hereinafter referred to as Agreement) issued by the Contractor
to [Sub-Contractor Name] having its registered office at [address] (herein after called
the Sub- Contractor), wherein the Sub-Contractor has agreed to execute [Nature of
works] for its Project [Project description and address] subject to the Sub-Contractor
fulfilling conditions stated in the Agreement.
2. As per the terms of the said Agreement, the Sub-Contractor, has agreed to facilitate issue of
Bank Guarantee on its behalf and accordingly, we, [Name of the Bank], issue this Bank
Guarantee on behalf of the Sub-Contractor.
3. We, [Name of the Bank], [branch details] hereby issue this Bank Guarantee on behalf of the
Sub-Contractor on terms and conditions contained herein.
4. We the [Name of the Bank][branch], (hereinafter called the Bank) undertake to pay to the
Buyer an amount not exceeding Rs. [Amount] (Rupees [Amount]) without recourse to the
Sub-Contractor and without demur or protest, or recourse or notification to the SubContractor, merely on written demand by the Contractor. We shall be obliged to honor this
Bank Guarantee, notwithstanding, any dispute between the Contractor, and the SubContractor or modification of the Agreement by the parties thereto.
5. Any such demand on the Bank shall be conclusive as regard the amount due and payable by
the Bank under this Guarantee. However our liability under this Guarantee shall be restricted
to an amount Rs. [Amount] (Rupees [Amount]). The Contractor shall have the right to
make one or more demands made from time to time for claiming under this Bank Guarantee
provided that our liability for such demands shall not exceed the amount of Rs. [Amount]
(Rupees [Amount]).
6. We, the Bank, further agree that the Guarantee herein contained is not revocable by notice
during its currency and shall remain in full force and effect until [Date of defect liability
period] . The Bank Guarantee shall not be discharged till the Contractor certifies that the
terms and conditions of the Agreement have been fully and properly carried out by the SubContractor and accordingly discharges this guarantee. We shall be discharged from all
liability under this Guarantee thereafter.
7. In order to give effect to this Guarantee, the Contractor shall be entitled to act as if the Bank
was the Principal Debtor and the Bank hereby waives any of its right of surety-ship.
8. This Guarantee will not be discharged due to the change in the constitution of Bank, or the
Sub-Contractor or of the Contractor Buyer.

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9. We the [name of the Bank] lastly undertake not to revoke this Guarantee during its currency
except with the previous consent of the Contractor in writing.
Notwithstanding anything contained herein:
Our Liability under this Bank Guarantee shall not exceed Rs. [Amount] (Rupees [Amount]). This
Bank Guarantee shall remain valid upto __________________.
And we shall be released and discharged from all liability here under unless a written claim for
payment under this guarantee is lodged on us on or before the date of expiry of this guarantee i.e. on
or before ___________ and we shall be obliged to honor any demand made prior to the aforesaid
date even if the validity period of the bank guarantee expires.
Dated this __________________ at [place of Issue of guarantee].

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