Annexure 2 PBG Format

Format of Bank Guarantee (For Performance) For Indigenous Supply
This guarantee made on this ------------day of --------200 by ----------------- (Bank) having its
registered office at ------------------, acting through its -------------------- branch (hereinafter called
Bank which expressions shall, unless repugnant to the context or contrary to the meaning thereof,
include its successors and permitted assigns) of the one part and ………UMPESL
…………………………………(hereinafter called the BUYER which expression shall, unless
repugnant to the context of meaning thereof, include its successors and permitted assigns) of the
other part.
WHEREAS BUYER has issued a Purchase Order for the Supply of-------------- (hereinafter
referred to as Contract) for a total value of----------------( Rupees-----------) vide PO
No.--------------------dated-------------- to M/s ------------------------- having its registered office at
-----VENDOR--------------------------- (hereinafter called SELLER which expression shall, unless
repugnant to the context or contrary to the meaning thereof include its successors and permitted
assigns).
AND WHEREAS one of the condition of the contract is that the SELLER will furnish to the
BUYER unconditional performance guarantee of Rs _________/-(Rupees----) being __% (as per
PO) of the Total Contract Value in the form of bank guarantee, from a Bank and in a form
acceptable to the BUYER for due and punctual performance of the Contract and also covering
product warranty.
AND WHEREAS the SELLER has requested the Bank to issue a guarantee of an amount of
Rs.--------------------(Rupees----) which the Bank has agreed to.
NOW THIS GUARANTEE WITNESSTH that in consideration of BUYER having agreed to

accept the guarantee furnished by the Bank in respect of the performance guarantee of Rs.
-----------------(Rupees____) as stipulated in the contract, the Bank hereby irrevocable and
unconditionally undertakes to pay to the Buyer forthwith on first demand without contest, protest
or demur or proof or condition and without any reference or recourse to the said SELLER any
and all amounts demanded by the Company in writing from the Bank with reference to this
undertaking unto an aggregate limit of Rs.------------ (Rupees-------), being the total amount of
the guarantee.
Notwithstanding any thing to the contrary the decision of the BUYER as to whether the SELLER
has committed any such delay or default and the amount or amounts to which the BUYER is
entitled by reasons thereof will be binding on us and the BANK shall not be entitled to ask the
BUYER to establish his claim or claims under this guarantee but will pay the same forthwith on
demand without any protest or demure and without any recourse to the SELLER.
This guarantee shall continue to hold good until it is released by BUYER on expiry of the relative
guarantee period mentioned in the contract. The guarantee is not assignable without the prior
consent in writing from the BUYER.
Should it be necessary to extend this guarantee following extension of the period of contract or
for any other reason, we undertake to extend the period of this guarantee on receipt of notice to
that effect from BUYER.
This guarantee shall not be affected by any change in the constitution of or by any reason of
winding up of SELLER/BANK or any merger, amalgamation or absorption of the
SELLER/BANK with any other Company or Companies nor shall this guarantee be prejudiced by
any merger amalgamation or absorption of the SELLER/BANK with any Company or
Companies but shall be available for and by the Company formed as a result of merger,
amalgamation and absorption.
The neglect or forbearance of the BUYER in enforcing any payment of the money, the payment
whereof is intended to be hereby secured, or giving of time, by the BUYER for the payment
thereof shall in no way absolve the Bank from it’s liability hereunder.
This guarantee is in addition to and not in substitution for any other guarantee executed by the
Bank in favour of the BUYER on behalf of the SELLER.
The BUYER and the SELLER shall be at liberty to vary or modify the terms and conditions or
the said contract without affecting this guarantee. This guarantee hereby waives notice of any
such modification to be given to it and the same shall be deemed to have been made with the
assent of the Bank.
In order to give effects to the guarantee the BUYER shall be entitled to act as if the Bank were
the principal debtor and Bank hereby waives all and any of its rights to suretyship.
Any notice by way of request and demand or otherwise hereunder shall be sent by mail or
personally served or served by post located at Mumbai branch, shall be presumed to have been
received by the Bank as follows:
 If personally served, when served. OR

 If mailed, upon receipt of forthwith said mail/post.
The guarantee herein contained is not revocable by notice during its currency and shall remain in
full force up to __________months from commissioning and handing over or ________ months
from delivery whichever is earlier or the extended period if any, and shall not be revoked by us
whether before its coming into force or at any time during its currency without your previous
consent in writing.
These presents shall be governed by and construe in accordance with the Indian Law and the
court shall have Mumbai with exclusive jurisdiction thereof.
Bank hereby declare that it has power to issue this guarantee and the undersigned has the full
power to approve execution, delivery and the performance of the guarantee.
Notwithstanding anything to the contrary stated herein above:

1. The liability of the guarantor is restricted to a maximum aggregate sum of Rs.----------.
2. The Guarantee shall remain in force until ----------------(Expiry date) with the claim period of
one year i.e __________.
3. The Guarantor is liable to pay the guaranteed amount or part there of under this bank
guarantee only and only if the Buyer serves upon the Guarantor a written claim or demand on
or before ----------------(Claim Period end date).
Signed, sealed and delivered for and on behalf of the above named Bank.
Sd/-
Authority No.
Name:
Designation

Annexure 2 PBG Format

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Format of Bank Guarantee (For Performance) For Indigenous Supply

NOW THIS GUARANTEE WITNESSTH that in consideration of BUYER having agreed to

 If personally served, when served. OR

Notwithstanding anything to the contrary stated herein above:

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