UNITED TELECOMS LTD. Vs. IDBI BANK LTD

JUDGEMENT

(1.) THE Petitioner has filed the present Section 9 petition seeking a restraint against Respondent No. 2 from invoking/encashing the bank guarantee issued by Respondent No.1.

(2.) THE case of the Petitioner is that Letter of Acceptance (LOA) dated 01.08.2012 was issued for supply of Dense Wave Division Multiplex (DWDM) equipment with a capacity of 40 channels. Along with the Letter of Acceptance, a Bill of Material (BOM) was annexed specifying the quantity with costs of items to be supplied as part of the equipment. It is contended that the LOA was issued in pursuance to the bid submitted by the Petitioner for supply of equipment with 40 channels against the tender floated by Respondent No.2. On acceptance of the bid and issuance of Letter of Intent, the Petitioner submitted performance guarantee (Security Deposit) equivalent to 10% of the value of the contract for due performance of the LOA dated 01.08.2012.

(3.) IT is contended that because of issuance of the corrigendum changing the scope of supply, disputes arose between the parties regarding the interpretation of the terms of LOA and Respondent No.2 threatened to invoke the bank guarantee.