P D ALKARMA PRIVATE LIMITED Vs. CANARA BANK

JUDGEMENT

(1.) In the suit for declaration and permanent injunction, declaring that the bank guarantee dated 6 December 1996, as revalidated, is not enforceable in law and restraining defendant no.2 from acting upon the said bank guarantee and invoking it, the plaintiff filed this application under Order 39 Rules 1 & 2 read with Section 151 Civil Procedure Code for grant of ad interim injunction to the same effect. On it, ex parte ad interim injunction order was issued on 19 August 1997 restraining defendant no.1 bank from remitting to defendant no.2 a sum of Rs.20 lakhs under the bank guarantee in question.

(2.) On being served with the summons/notice, defendant no. 2 has filed the written statement and reply to the application, resisting the suit and the application.

(3.) The brief facts, material for the disposal of the application, culled out from the pleadings, are :