ATUL LIMIED Vs. D L F INDUSTRIES LIMITED

JUDGEMENT

(1.) These SLPs have been preferred against the order of the High Court dated 13-7-1999 whereby the High Court admitted FAO No. 37 of 1999 and directed that the hearing should be expedited and interim order dated 15-2-1999 was to continue to operate till the final disposal of the FAO.

(2.) The matter relates to encashment of four bank guarantees by the petitioners in these SLPs. The bank guarantees had been invoked on 13-1-1998 but the bankers are said to have asked the petitioners to come after two days and the amount was not released. It was alleged that the petitioner was incurring heavy losses on account of non-commissioning of the project by the respondent DLF Industries Ltd. On 14-1-1998 the Central Bank of India issued two cheques of Rs 65,30,100 and Rs 13,50,000. ABN Ambro Bank issued pay order in favour of the petitioner for Rs 1.15 crores, the Hong Kong and Shanghai Bank issued cashier orders for Rs 7,10,000 in favour of the petitioner.

(3.) Before the cheques could be encashed, the respondent DLF Industries ltd. filed OMPs Nos. 20, 21 and 22 of 1998 on 15-1-1998 to restrain the banks from encashing the bank guarantee. The learned Single Judge of the high Court passed an order of injunction on 16-1-1998 directing the Banks not to clear the cheques.