Courts: when you can not be fined for failure to provide new security for the execution of a state contract
The parties concluded a construction state contract. The contractor provided a Bank guarantee as security for its performance. Later, he used the right to give the customer new security, reduced by the amount of fulfilled obligations.
The customer demanded to send the original Bank guarantee before a certain period, and later informed about the deduction of the fine for failure to provide new security from the amount of payment for work under the contract. The contractor did not agree.
The court of first instance partially satisfied the requirements.
Subsequent instances considered the fine illegal and collected the debt from the customer in full:
- the obligations under the contract were fulfilled in good faith;
- provision of new security is the right, not the obligation of the contractor;
- liability for failure to provide security is not stipulated in the contract.
Document: Resolution as of the Volga-Vyatka district of 13.03.2020 on the case N A43-52944/2018