As per the court order, PNB’s stand is due to letters issued by IBA on December 12, 2018, to its member banks, stating that if a bank issues a claim period of less than one year on top of the guarantee period then such a bank guarantee would not have the benefit of Exception 3 to Section 28 of the Contract Act.source https://economictimes.indiatimes.com/industry/banking/finance/banking/forcing-minimum-claim-period-of-1-year-on-bank-guarantees-wrong-says-delhi-hc/articleshow/84903298.cms
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