(1.) PERTAINING to supply of cables the respondent was bound by the General Conditions of Contract and vide condition No.4, under the caption 'Performance Security', was obliged to furnish 'The Performance Security Bond' in the form of a bank guarantee issued by a Scheduled Bank as per proforma provided in Section IX of the bid documents.
(2.) THE proforma of the Security Bond, relevant part, reads as under:
(3.) ALLEGING breaches committed by the appellant and stating that the prices of the cables had fallen when the work was re-tendered and that the appellant awarded the balance work at a price short by 30% of the contract stipulated price, the respondent claimed, amongst others, that the bank guarantee, which was to secure the loss to the appellant, could not be encashed because there was no loss.