EMCO PRESSMASTER PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This order shall dispose of IA No.6775/95 and 11384/95.

(2.) IA No. 6775/95 is an application under Order 39 rules 1 and 2 read with Section 151 Civil Procedure Code filed by the plaitiff seeking an ad interim injunction. IA No. 11384/95 is an application under Order 39 rule 4 Civil Procedure Code filed by the defendant No.2 seeking vacation of the ex parte injunction order dated 17/6/1995.

(3.) The plaintiff has filed the suit for declaration that the bank guarantees No. 94/229 and 94/230 issued by the defendant No.1 bank for Rs. 2,12,500.00 and Rs. 2,67,000.00 respectively are void and for an injunction against their encashment. According to the plaintiff, by the purchase orders dated 26/10/1994, defendant No.2 agreed to purchase two mechanical presses of 125 tonnes and 160 tonnes from the plaintiff for Rs. 8,50,000.00 and Rs. 10,68,000.00 respectively. Terms and conditions of the said agreements were set out in the purchase orders. These machines were to be supplied to defendant No.2 within 3 - 4 months from the date of purchase orders. As per terms of the agreements 25% of cost of the said machines was paid in advance to the plaintiff against the bank guarantees No. 94/229 and 94/230 furnished by the plaintiff. The plaintiff manufactured the said machines as per specifications, but defendant No.2, even after their inspection and approval, wrongfully refused to take delivery and fraudulently invoked the aforesaid bank guarantees vide letter dated 9/6/95.