The Discharge of Bank Guarantee is a crucial document in Indian banking and commercial transactions that provides formal closure to bank guarantee arrangements. It is typically required when the purpose for which the bank guarantee was issued has been fulfilled, the guarantee period has expired, or the secured obligations have been satisfactorily completed. The document protects banks from future claims and provides certainty to all parties about the termination of guarantee obligations. Under Indian law, particularly the Indian Contract Act, 1872, and banking regulations, the discharge document must contain specific elements including clear identification of the original guarantee, parties involved, and unambiguous discharge language. This document is particularly important in sectors such as construction, international trade, and government contracts where bank guarantees are frequently used as security instruments.

1. Bank Details: Full name and address of the issuing bank branch

2. Original Guarantee Reference: Details of the original bank guarantee including number, date, and amount

3. Beneficiary Information: Complete details of the beneficiary who is providing the discharge

4. Applicant Information: Details of the party on whose behalf the guarantee was issued

5. Purpose Declaration: Statement of the purpose for which the original guarantee was issued

6. Confirmation of Obligation Fulfillment: Declaration that all obligations under the guarantee have been fulfilled

7. Discharge Statement: Formal statement releasing the bank from all obligations under the guarantee

8. Return of Original Guarantee: Confirmation of return of the original guarantee document or statement declaring it null and void

9. Authorization: Statement of authority of the signatory to execute the discharge