FORMAT FOR RETENTION MONEY
THIS deed of guarantee executed by the. ………………Bank (hereinafter referred to as “the Bank”) in favour of……………….…(Hereinafter referred to as “The Beneficiary”) for an amount not exceeding Rs……………….(Rupees………………………..Only) at the request of M/s …………………………(hereinafter referred to as “The Contractors”)
This guarantee is issued subject to the condition that the liability of the Bank under this guarantee is limited to a maximum of Rs……………………..(Rupees ……………………only) and the guarantee shall remain in force up to…………………
The consideration of M/s Petronet CCK Limited, New Oil Installation of Bharat Petroleum Corporation, Irimpanam, Cochin – 682309 (hereinafter called the “The Company) having agreed to release the retention amount of Rs………………which had been deducted from the value of the work executed as per the Agreement No…………Dated on production of a Bank Guarantee of Rs…………………………
WE, the………………….Bank do hereby undertake to indemnify and keep indemnified the Company to the extent of Rs……………………against any loss or damage carried to or suffered by the company by reason of any of the terms and conditions contained in the said agreement. We, the. ………………………Bank further agree and undertake to pay at your office at Irimpanam, on demand the amount of any loss or damage and agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for performance of the said agreement and it shall continue to be enforceable till all the dues of the Company under or by virtue of the said agreement have been fully paid and its claims satisfied of discharged or till Petronet CCK limited certified that the terms and conditions of the said agreement have been fully and properly carried out by the said contractors, M/s………………….and accordingly discharges the Guarantee.
Not withstanding anything contained in foregoing our liability under this guarantee is restricted to Rs………………………..and shall remain in force till………………………unless an action to enforce a claim under this guarantee is made and received by us in writing within six months from the aforesaid date. I.e. before……………….all your rights under the said guarantee shall be fortified and we shall be relieved and discharged from all liabilities under this guarantee thereafter.
Date:…………………