New Delhi, May 22, 2025 

 The National Consumer Disputes Redressal Commission (NCDRC) has dismissed a complaint filed by the State of Rajasthan against ICICI Bank, bringing closure to a long-standing dispute involving failed infrastructure work and expired bank guarantees.

The case stemmed from a ₹19.9 crore sewerage project in Rajsamand awarded to Ramasethu Infrastructure Ltd. by the state’s urban development agency. As part of the contract, ICICI Bank had issued performance guarantees, which the state later sought to invoke after terminating the project due to non-completion.

However, the guarantees had lapsed by the time the state approached the bank for encashment. ICICI Bank cited both the expiry of the guarantees and a court-ordered status quo as reasons for non-payment. Arbitration proceedings between the contractor and the state had already been concluded by then.

After hearing all sides, the Commission held that no deficiency in service could be attributed to the bank, as the guarantees were no longer valid. The complaint was found to be legally untenable, especially given that the state was already awarded remedies through arbitration.
The ruling reinforces the legal principle that expired financial instruments cannot be enforced, and also underscores the importance of timely legal action in commercial disputes.

Key Takeaways:
•    Mortgage rights do not override land acquired by the state for public purposes.
•    Writ jurisdiction cannot be used to bypass statutory civil remedies.
•    Mutation entries reflecting government ownership post-acquisition are valid.

Counsel Appeared: Adv Anaand Shankar Jha