ARAVALI INTERNATIONAL Vs. JAMMU AND KASHMIR BANK LTD

JUDGEMENT

(1.) The aforementioned suit is filed by the plaintiff for the recovery of a sum of Rs. 23,73,364.38 (Rupees Twenty Three Lacs Seventy Three Thousand Three Hundred Sixty Four and Paise Thirty Eight Only) together with costs and interest thereon premised on a Bank Guarantee issued by the defendants, whereby the defendants unconditionally bound themselves to make the payment as mentioned in the Bank Guarantee to the plaintiff in the event of non-performance of export obligations by a third party.

(2.) Briefly the facts may be delineated as follows.

(3.) On 19 th April, 1994, M/s. Chittagong Cement Clinkers & Grinding Co. Ltd., South Halisher, Chittagong (hereinafter referred to as M/s. Chittagong ) entered into an agreement for the supply of 25,000 Metric Ton of cement clinkers with the plaintiff. On the same date, i.e., on 19 th April, 1994, M/s. Chittagong entered into another agreement with M/s. Project & Equipment Corporation of India Ltd., Hansalaya, 15 Barakhamba Road, New Delhi (hereinafter referred to as M/s. Project Equipment ) for supply of another 25,000 Metric Ton of cement clinkers. On 25 th April, 1994, M/s. Project Equipment further entered into an agreement with the plaintiff assigning the contract in favour of the plaintiff on the same terms and conditions as contained in the principal agreement entered into by it with M/s. Chittagong. On the same day, i.e., on 25.04.1994, the plaintiff in turn entered into two contracts for the supply of 25,000 Metric Ton of cement clinkers each with M/s. Impression International India, 110- 111 Pragati Tower, Rajindra Place, New Delhi (hereinafter referred to as M/s. Impression ) on the same terms and conditions as contained in the principal agreements, in consideration of commission to be paid by M/s. Impression to the plaintiff.