M/S. ADANI AGRI FRESH LTD., REPRESENTED BY ITS AUTHORISED REPRESENTATIVE Vs. MAHABOOB SHARIFF, STATE BANK OF MYSORE, REPRESENTED BY ITS MANAGER AND STATE BANK OF MYSORE, REPRESENTED BY ITS AGM

JUDGEMENT

(1.) THIS writ petition is filed seeking to set aside the order dated 10.08.2011 passed by the Principal I Civil Judge, Mysore, (herein after referred as trial Court) in IA No. 1 in O.S. No. 991/2011 and the order dated 17.12.2011 passed by the II Additional Senior Civil Judge, Mysore, (hereinafter called as Lower Appellate Court) in M.A. No. 68/2011. The parties are referred to as per their ranking before the trial court. The petitioner herein is the defendant No. 3 and the first respondent is the plaintiff in O.S. No. 991/2011.

(2.) THE plaintiff has filed a suit before the trial court alleging that the third defendant has supplied 8 loads of apples to the plaintiff and in respect of the cost of the said apples, bank guarantees were issued by the first and second defendants for different periods. Bank Guarantee 3/2010 -11 was given for the period from 24.12.2010 to 23.12.2011 for a sum of Rs. 15,00,000/ -. Bank Guarantee No. 4/2010 -11 was covering for the period from 10.02.2011 to 09.02.2012 for a sum of Rs. 15,00,000/ - and Bank Guarantee No. 5/2010 -11 was for a period of 09.02.2011 to 08.02.2012 for a sum of Rs. 40,00,000/ -.

(3.) THE trial court after hearing the respondent had passed the interim order on 10.08.2011 restraining first and second defendant banks from making payment of schedule amount to the third defendant till the disposal of the suit either amicably or judiciously between the plaintiff and third defendant subject to the conditions that the plaintiff shall extend the bank guarantee executed through first and second defendant banks in favour of the third defendant for every six months, till the disposal of the suit; after expiry of the period under the bank guarantee No. 5/2010 -11 for the period commencing from 10.02.2011 to 09.02.2012. The trial court has also further directed that in case, the plaintiff files -in the suit, the plaintiff shall compensate third defendant by paying interest at the rate of 18% per annum on the total value of the goods to the third defendant from the date of suit till the disposal of the suit.