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Ansaldo Caldaie Boilers India Pvt. Ltd. v. G Elli Riduttori Seites Srl and another

Madras HC8 Apr 2026OA/1207/2025

Case brief

AI extract

What is this about?

letter of credit; LC No.250129FCU00012 dated 15.09.2025; discharge of interim order dated 05.01.2026; bank guarantee Euro 102315; IDBI Bank; G.ELLI RIDUTTORI SEITES S.R.L; Ansaldo Caldaie Boilers India Pvt. Ltd.; certification of judgment and decree; validity upto closure of legal proceedings; Commercial Division Madras High Court; O.A.No.1207 of 2025; C.S. (Comm.Div.) No.334 of 2025; Senthilkumar Ramamoorthy J.; 08.04.2026

What did the court decide?

Interim order dated 05.01.2026 discharged on condition that the first defendant periodically renews and keeps alive the bank guarantee of Euro 102315 until disposal of the suit; first defendant permitted to receive the proceeds of the letter of credit; original application closed. ¶29

Ansaldo Caldaie Boilers India Pvt. Ltd. Vs G Elli Riduttori Seites Srl and another — Madras HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the interim order dated 05.01.2026 restraining the second defendant from making payments under the letter of credit should be discharged, permitting the first defendant to receive payments thereunder, subject to the first defendant providing and keeping alive a bank guarantee of Euro 102315 until disposal of the suit. +1 more

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Court's answer

Discharge of the interim order was made conditional on the first defendant ensuring that the bank guarantee is periodically renewed and kept alive until disposal of the suit by a judgment.

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Ratio / Principle

On that condition, the interim order issued on 05.01.2026 is discharged and the first defendant is permitted to receive the proceeds of the letter of credit.

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Key takeaways

The plaintiff's apprehension concerning the certification to accompany demands under the bank guarantee was allayed by IDBI Bank's course of communicating a certified copy of the judgment of this Court, certified as such, clearing the way for the discharge.ratio¶28

Detailed headnote1 paragraphs

Madras High Court, Commercial Division (Senthilkumar Ramamoorthy, J.), 08.04.2026 - O.A.No.1207 of 2025 in C.S. (Comm.Div.) No.334 of 2025 (Ansaldo Caldaie Boilers India Pvt. Ltd. v. G.ELLI RIDUTTORI SEITES S.R.L and IDBI Bank): The interim order dated 05.01.2026 restraining IDBI Bank from making payments under Letter of Credit No.250129FCU00012 dated 15.09.2025, opened in favour of the first defendant, was discharged on condition that the first defendant ensures the bank guarantee for Euro 102315 (stated to be equivalent to the value of the letter of credit) is periodically renewed and kept alive until disposal of the suit. The first defendant was permitted to receive the proceeds of the letter of credit and the original application was closed. The plaintiff's concerns regarding certification of the judgment and decree by IDBI Bank and validity of the guarantee upto closure of legal proceedings were addressed; the Court noted that communication of a certified copy of the judgment, certified as such, allayed the plaintiff's apprehension. No statutory provisions or precedents were cited.

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O.A.No.1207 of 2025 in C.S. (Comm.Div.) No.334 of 2025 IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 08.04.2026

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CORAM

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THE HONOURABLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY

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O.A.No.1207 of 2025 in C.S. (Comm.Div.) No.334 of 2025

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ANSALDO CALDAIE BOILERS INDIA PVT. LTD. Rep. By its Director Mr.Jawahar Pachayappan Office No.3, 3^rd Floor, Ceebros Centre, New No.39 (Old No.45), Montieth Road, Egmore, Chennai – 600 008.

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.. Applicant

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1.G.ELLI RIDUTTORI SEITES S.R.L

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rep. By its Managing Director Mr.Pietro Elli Regd. Office at Piazzale L.Cadorna, 13-20123, Milano-Italy.

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2.IDBI Bank

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rep. By its Branch Manager, 115, Anna Salai, Saidapet, Chennai – 600 015. .. Respondents

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For Applicant : Mr.P.J.Sri Ganesh For Respondents : Mr.Kalyan Jhabakh for M/s.Surana and Surana for R1

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Mr.K.Balamurali for M/s.Shivakumar and Suresh for R2

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ORDER

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Letter of credit No.250129FCU00012 dated 15.09.2025 was

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opened by the second defendant in favour of the first defendant.

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https://www.mhc.tn.gov.in/judis

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O.A.No.1207 of 2025 in C.S. (Comm.Div.) No.334 of 2025 This was in relation to supply of goods by the first defendant to the

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plaintiff. The plaintiff has sued for declaration that such letter of credit is null and void and for injunctive relief relating thereof. By order dated 05.01.2026, the second defendant was restrained from making payments under the letter of credit to the first defendant. Such order remains in force as on date.

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Pursuant to negotiations, the first defendant has agreed to provide bank guarantee for a sum of Euro 102315, which is said to be equivalent to the value of the letter of credit. The first defendant has also agreed to keep the bank guarantee alive until disposal of the suit. Subject to this condition, the first defendant requests that it be permitted to receive payments from the second defendant under the letter of credit.

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The plaintiff is agreeable to this course of action, but points out two issues with the bank guarantee. The fist issue is that the demand for payment is required to be accompanied by a certification by the IDBI Bank regarding judgment and decree in the suit. The second issue pertains to the validity of the bank guarantee being upto closure of legal proceedings as communicated by the High Court through the IDBI Bank.

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https://www.mhc.tn.gov.in/judis

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O.A.No.1207 of 2025 in C.S. (Comm.Div.) No.334 of 2025

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Learned counsel for the IDBI Bank submits that the

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certified copy of the judgment of this Court would be communicated to the issuer of the bank guarantee by certifying that the same is a certified copy. This allays the apprehension of the plaintiff.

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Therefore, on condition that the first defendant ensures that the bank guarantee is periodically renewed and kept alive until disposal of the suit by a judgment, interim order issued on 05.01.2026 is discharged and the first defendant is permitted to receive the proceeds of the letter of credit. Accordingly, this original application is closed.

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08.04.2026

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mmi

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P.S.: UPLOAD FORTHWITH

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https://www.mhc.tn.gov.in/judis

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O.A.No.1207 of 2025 in C.S. (Comm.Div.) No.334 of 2025