KOTAK MAHINDRA BANK LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This suit is filed on behalf of the Plaintiff seeking a decree for declaration that Plaintiff is discharged from its obligations under Bank Guarantees ('BGs') being: (i) Bank Guarantee No. 0691OBG16010553 dtd. 23/8/2016; (ii) Bank Guarantee No. 0691OBG16010800 dtd. 26/8/2016; (iii) Bank Guarantee No. 0691OBG16011649 dtd. 14/9/2016; (iv) Bank Guarantee No. 0691OBG16012653 dtd. 30/9/2016; and (v) Bank Guarantee No. 0691OBG16014183 dtd. 26/10/2016 as also declaring that invocation of the said Bank Guarantees vide notices/letters dtd. 5/1/2019, 15/1/2019 and 29/1/2019 is invalid, illegal and void. Plaintiff also seeks a decree in the sum of Rs.48,77,13,600.00 along with interest from the date of payment against Defendant No.

(2.) It is averred that Plaintiff is a Banking Company registered under the Companies Act, 1956 engaged in the business of banking. Defendant No. 1/Ministry of Road, Transport and Highways ('MoRTH') is an Organization under the Government of India entrusted with task of formulating and administering, in consultation with other Central Ministries/Departments, State Governments etc., policies for Road Transport, National Highways and Transport Research, with a view to increasing the mobility and efficiency of road transport system in the country. Defendant No. 3 is a Company against which NCLT, Mumbai has admitted insolvency proceedings and appointed Resolution Professional. During the pendency of Corporate Insolvency Resolution Process ('CIRP'), no legally compliant resolution plan was received by the Committee of Creditors till 269th day and hence by efflux of time, on 270th day, Defendant No. 3 went into liquidation and NCLT thereafter appointed a Liquidator.

(3.) It is averred that MoRTH had entrusted the Government of Bihar the work of development, maintenance and management of NH-104 and had resolved to take up the work of rehabilitation and upgradation of 2 lanes with paved shoulders configuration and strengthening of Sitamarhi- Jaynagar-Narahai Sec. in the State of Bihar under Phase-I of the National Highways Inter- Connectivity Improvement Projects. By and under two separate bidding documents, both dtd. 1/4/2015, MoRTH invited bids for undertaking work in Lot-I and Lot-II of the Project.