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case study on bank guarantee
#1
A bank guarantee has been issued by Bank K on behalf of its

customer L in favor of R. The guarantee amount being Rs.2.75 lacs.
When the claim received by Bank K from R, the bank has a balance
of Rs.3.28 in the current account of L. Then the bank K

a.. Can debit L’s current account with the claim amount and make a
demand draft in favour of R and send.

b. Before doing so Bank K to consult L and take his permission.

c. Bank K to discuss with R

d. Can not debit the current account of L but extend an advance in
favour of L and then make the payment
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