INDU PROJECTS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is a petition filed under Section 9 of the Arbitration & Conciliation Act, 1996 (in short the Act) to seek an injunction qua the encashment of the performance bank guarantee bearing No.110133IBGF00019 dated 12.01.2011, in the sum of Rs. 5,93,10,000/ -, issued by the concerned branch of the IDBI Bank, situate at Hyderabad.

(2.) THEREFORE , without much ado, let me advert to the facts which obtain in the present petition, and the arguments, advanced in support of those contentions. I must, however, state at the outset that Mr Sundaram, who appeared for the petitioner, categorically conveyed to me that the submissions made in the lead matter, would cover the other three petitions filed along with the lead petition.

(3.) IT is in this background when, the petitioner came to know on 08.08.2013, that the respondent, had sought to invoke the bank guarantee in issue vide letter dated 07.08.2013, that it approached this court, by way of a petition, under Section 9 of the Act; which was numbered as OMP No. 785/2013. Vide order dated 12.08.2013 an interim injunction was granted in favour of the petitioner, for the reason that prima facie, the invocation, at that stage, did not appear to be in consonance with the terms of the bank guarantee. The respondent, apparently, to meet this defect in its letter of invocation overrode the earlier letter of invocation with a fresh letter of invocation dated 23.10.2013.