KIOCL Limited. - The Kudremukh Iron Ore Company Limited

ToThe KIOCL Limited.,69FORMAT NO. KIOCL/B/TS/QF-02/REV-1FORM OF BANK GUARANTEE FOR ADVANCE PAYMENTSecond Block, Koramangala, OR New Mangalore Port, OR Kudremukh,Bangalore - 560 034. Panarnbur, Chickmagalur Dist. 575 142.Mangalore - 575010In consideration of KIOCL Limited (hereinafter referred to as "Company") agreeing to pay toM/s…………………………………… (hereinafter referred to as, "Contractor") a sum of Rs …………………………(Rupees ……………………………………..……… only) as and by way of advance in terms of Order No……………..dated………………………………………… (hereinafter referred to as "Contract") on production of Bank Guarantee bythe Contractor for Rs………. (Rupees........ only) we, ...................... (hereinafter referred to as "the Bank") do herebycovenant and agree with the Company as follows:1. We hereby guarantee the payment to the Company the said advance of Rs……………………(Rupees………………………………………………………………………… only)and interest thereon at 15.5 percent per annum from the date of demand till payment against any loss ordamage caused to or suffered or that may be caused to or suffered by the Company by reason of anybreach by the said Contractor of any of the terms and conditions contained in the said Contract.2. Notwithstanding anything contained hereunder, we ……………………………………… hereby unconditionallyand irrevocably undertake to pay to the Company to the extent of Rs………………… (Rupees.……………………………………………... only) plus interest thereon at 15.5 percent per annum from the dateof demand till payment without any demur merely on a demand from the Company stating that the amountclaimed is due by way of loss or damage caused to or suffered or would be caused to or suffered by theCompany by reason of breach by the said Contractor of any of the terms and conditions contained in thesaid Contract. Any such demand made on the Bank shall be conclusive as regards the amount due andpayable by the Bank under this Guarantee. However, our liability under this Guarantee shall be restricted toan amount not exceeding Rs . …………….. ( Rupees......................…………… only) and interest thereon asmentioned above from the date of demand till payment.3 Our liability under this present Guarantee is absolute and unequivocal and we undertake to pay theCompany the amount so demanded notwithstanding the Contractor raising any dispute and/or disputes orfiling any suit or proceeding before any Court or Tribunal Authority. The payment so made by us under thisGuarantee shall be a valid discharge of our liability for payment hereunder.4. We…………………………..further agree that the Guarantee herein contained shall remain in full force andeffect during the period that would be taken for the performance of the said Contract and that it shallcontinue to be enforceable till all the dues of the Company under or by virtue of the said Contract havebeen fully paid and its claims satisfied or discharged and till the Company certifies that the terms andconditions of the said Contract have been fully and properly carried out by the said Contractor andaccordingly discharges this Guarantee. Unless a demand or claim under this Guarantee is made on us inwriting on or before …………………………… we shall be discharged from all liability under this Guaranteethereafter.5. This Guarantee shall not be revocable by us except with the written consent of the Company and shallcontinue to be enforceable till....... Should it be necessary to extend this Guarantee beyond the said date,we undertake to extend the validity of this Guarantee for such further period as may be required by theCompany, and such extension shall be given one month before the expiry of the Guarantee failing whichthe amount covered under this Guarantee shall become forthwith payable, notwithstanding that the Contractis continuing and / or the Company has or has not terminated the Contract or preferred any claim againstthe Contractor.6. We, ………………………………………………… further agree with the Company that the Company shallhave the fullest liberty without our consent and without affecting in any manner our obligations hereunder tovary any of the terms and conditions of the said Contract or to extend time of performance by the saidContractor from time to time or to postpone for any time or from time to time exercise of any of the powersexerciseable by the Company against the said Contractor and to forbear or enforce any of the terms andconditions relating to the said Contract and we shall not be relieved from our liability by reason of any suchvariation or extension being granted to the said Contractor or for any indulgence by the Company to thesaid Contractor or by any such matter or thing whatsoever which under the law relating to sureties would,but for this provision, have effect of so relieving us.