BHUSHAN INDUSTRIAL CO PRIVATE LIMITED Vs. CIMMCO INTERNATIONAL

JUDGEMENT

(1.) This is a suit for permanent injunction.

(2.) These are the facts. The defendant Cimmeo International (hereinafter called 'Cimmco') entered into a contract dated June 20, 1978 (hereinafter called the 'export contract) with Sudan Railways for the supply of bearing plates and spikes of the value of Rs. 51,72,000. Subsequently on, Jan. 23, 1979 Cimmeo entered into a contract with the plaintiff, Bhushan Industrial Company (P) Ltd., (hereinafter called Bhushan) in terms of which Bhushan was to supply certain quantity of bearing plates to Cimmeo which Cimmeo in their turn had agreed to supply to Sudan Railways under the export contract.

(3.) For the due performance of the contract made between Cimmeo and Bhushan, a performance guarantee dated February 17, 1979 issued by M[s. Grindlays Bank Ltd. New Delhi, defendant No. 2 for the amount of Rs. 1,44,000 was furnished by Bhushan to Cimmco. This guarantee was for a period of one year. It was revalidated on 22-4-1980 for a further period of one year commencing from 17-2-1980.