XYZ Constructions Private Ltd., a reputed infrastructure company, has been awarded a contract by the National Highway Authority of India (NHAI) for the construction of a six-lane highway. As per the contract terms, XYZ C

Sample Bank Guarantee To ____________ ____________ (Name & Address of the Authority to which Bank Guarantee is to be addressed) Dear Sir, Subject: Performance Bank Guarantee in respect of Purchase Order No. ____________ dated ____________ issued to M/s. ____________ THIS DEED OF GUARANTEE is executed on this ____________ day of June, 2025 by [Name of the Bank], a banking company incorporated under the laws of India and having its registered/branch office at ____________ (hereinafter referred to as the 'Bank', which expression shall, unless repugnant to the context or meaning thereof, be deemed to include its successors and permitted assigns), in favor of [Name of the Authority/Purchaser], (hereinafter referred to as the 'Purchaser', which expression shall, unless repugnant to the context or meaning thereof, be deemed to include its successors, administrators and assigns). WHEREAS, the Purchaser has awarded a Contract, by way of Purchase Order No. ____________ dated ____________ (hereinafter referred to as the 'Contract'), to M/s. ____________ a company having its registered/head office at ____________ (hereinafter referred to as the 'Contractor', which expression shall unless repugnant to the context or meaning thereof include its successors, administrators, executors, and assigns), for the execution of work pertaining to ____________ (brief description of work), for a contract value of INR ____________ (Indian Rupees ____________ Only). AND WHEREAS, under the terms of the Contract, the Contractor is required to furnish a Performance Bank Guarantee amounting to ____________ percent of the contract value, equivalent to INR ____________ (Indian Rupees ____________ Only), for the due and faithful performance of its obligations under the Contract. NOW THEREFORE, in consideration of the foregoing and at the request of the Contractor, we, the Bank, hereby irrevocably and unconditionally guarantee and undertake to pay the Purchaser, on its first written demand and without any demur, protest or reference to the Contractor, any sum or sums not exceeding INR ____________ (Indian Rupees ____________ Only), against any loss or damage caused to or suffered by the Purchaser by reason of any breach by the Contractor of any of the terms and conditions contained in the Contract. Any such demand made by the Purchaser on the Bank shall be conclusive as regards the amount due and payable by the Bank under this Guarantee. The Bank shall not require the Purchaser to justify its invocation of this Guarantee or to prove or show grounds or reasons for such demand. We, the Bank, further agree that: This Guarantee shall remain in full force and effect for a period of 36 (Thirty-Six) months from the date of issue i.e., until ____________ and shall be further valid for a claim period of six (6) months thereafter, i.e., up to ____________. The Bank shall not revoke this Guarantee during its currency without the prior written consent of the Purchaser. This Guarantee shall not be affected by any change in the constitution of the Bank or of the Contractor or of the Purchaser. The liability of the Bank under this Guarantee is restricted to the Guaranteed Amount and this Guarantee shall remain in full force until the expiry of the validity and claim period as mentioned above, unless a demand or claim is made in writing on or before ____________ (date falling 6 months after expiry), in which event the same shall be enforceable notwithstanding the expiry of the Guarantee. The Purchaser's written demand shall be sufficient to invoke this Guarantee, and the Bank shall honour the same without any demur, counterclaim, deduction or set-off. Notwithstanding anything contained herein: i) The Bank's liability under this Guarantee shall not exceed INR ____________ (Indian Rupees ____________ Only); ii) This Guarantee shall remain valid until ____________ (36 months from the date of issue); iii) The Bank shall be liable to honor any claim received in writing on or before ____________ (date falling 6 months after expiry of validity), after which this Guarantee shall automatically stand discharged. IN WITNESS WHEREOF, the Bank has caused this Guarantee to be executed by its duly authorized officer on the day, month and year first above written. Signature: Name: Designation with Bank Stamp (Scheduled Bank): Official Address: Witness 1. Signature: ____________ 2. Witness: ____________ Name: ____________ Name: ____________