Sometimes, but rarely. Courts in Bangladesh treat unconditional bank guarantees as independent of the underlying contract, so a dispute about whether the contractor was actually in breach is not enough. An injunction is generally available only where there is clear evidence of fraud known to the bank, or where payment would cause irretrievable injustice. Arguments that the employer is itself in breach, or that the call is commercially unfair, usually fail at the interim stage. We assess the evidence frankly and, where an injunction is unrealistic, focus on recovering the money through the contract claim instead.

A valid demand must comply strictly with the terms of the guarantee. That usually means presentation before expiry, at the correct place, in the required form, signed by an authorised person and including any statement or document the guarantee specifies, such as a statement that the applicant is in breach. Where the guarantee is subject to URDG 758, those rules govern examination and timing. A defective demand can be rejected, but the beneficiary may be able to present a corrected demand before expiry. We check every element and, for beneficiaries, draft demands that leave no room for refusal.

First, examine the refusal notice itself. Under UCP 600 the issuing bank must give a single notice within a defined period, listing every discrepancy and stating what it is doing with the documents. A late or incomplete notice can prevent the bank from relying on the discrepancies. Second, test whether the discrepancies are genuine under international standard banking practice. Third, consider commercial routes, such as asking the applicant to waive. We prepare a detailed response, escalate within the bank and, where necessary, pursue recovery through proceedings or arbitration in Bangladesh or abroad.

Bid security, performance security and advance payment guarantees are standard in public procurement, and procuring entities often call them when a contractor fails to sign, perform or complete. The same independence principle applies, so a call generally cannot be stopped simply because the contractor disputes the employer's assessment. However, the procurement rules and the contract may impose procedural requirements before a call, and a demand made in breach of those may be challengeable. We review the procurement framework, the contract and the instrument together, and coordinate with any complaint or arbitration the contractor intends to pursue.

Generally no. Under a documentary credit the bank pays against compliant documents, not against the quality of the goods. An importer who received defective goods normally has a claim against the seller under the sale contract, which may be pursued in court or arbitration. Payment can be restrained only in narrow circumstances, typically where there is clear evidence of fraud in the documents. Importers should act early: once documents have been accepted or a deferred payment undertaking has matured, the room to intervene narrows further. We advise on both the LC position and the underlying sale claim.

An issuing bank that has accepted documents or given a deferred payment undertaking is bound to pay at maturity, regardless of later disputes with its customer. Delays sometimes reflect foreign exchange constraints, a court order obtained by the applicant, or internal problems at the bank. We send a formal demand, engage with the bank's legal and trade services teams, and consider reporting the matter to Bangladesh Bank where appropriate. If payment is still not made, we pursue recovery in the commercial or civil courts, or in arbitration where agreed, and advise on interest, costs and any linked bank guarantees.

Yes. Bank guarantees and letters of credit in foreign currency, and guarantees given by Bangladeshi banks in favour of non-residents, fall within Bangladesh Bank's foreign exchange framework. Depending on the transaction, issuance, amendment or payment may require reporting, prior approval or compliance with specific conditions. These rules are updated by circular, so we check the current position for each matter. A dispute about payment can turn on whether the necessary approvals were in place, so we review the regulatory file alongside the instrument and the underlying contract from the start.

The guarantee itself usually contains a jurisdiction clause or none at all, while the underlying contract often provides for arbitration. As a result, the dispute about the call may be heard in court, while the dispute about whether the call was justified is decided by an arbitral tribunal. Courts can grant interim measures in support of arbitration under the Arbitration Act 2001. We plan the two tracks together so that positions taken in an urgent hearing do not undermine the main claim, and so that any eventual award can be used to recover sums paid out under the guarantee.