Section 126 of the Indian Contract Act, 1872 talks about the invocation of guarantee in India. In commercial contracts, parties usually prefer to have a contract of bank guarantee to further assure payment of money. It is an independent contract, free from any dispute between the beneficiary and the applicant of the bank guarantee. While the grounds of fraud and irretrievable injustice against invocation of bank guarantee have been recognised through catena of judgements, the “special equities” as a separate, independent ground was not yet recognised...