COCHIN PORT TRUST Vs. BANK OF INDIA

JUDGEMENT

(1.) The petitioner-Cochin Port Trust is aggrieved by the refusal of the 1st respondent to encash Bank Guarantee and transfer the same to the petitioner. The petitioner also seeks to declare that invocation of the Bank Guarantee during the claim period is valid invocation and binding on the Bank.

(2.) The petitioner states that a tender was floated by them for awarding the work of providing consultancy services for design and supervision of flyover and ROB at ICTT area in Vallarpadam. The 2nd respondent being the successful bidder, Ext.P1 agreement dated 20.08.2014 was executed with the 2nd respondent. The 2nd respondent was required to provide a performance security in the form of a Bank Guarantee. The 2nd respondent furnished Ext.P2 Bank Guarantee dated 21.07.2014.

(3.) By Ext.P2, the 1st respondent-Bank agreed to pay the petitioner on demand any and all money payable by the 2nd respondent to the extent of Rs.19,40,000/- at any time up to 30.09.2015. The Bank Guarantee which was valid up to 30.09.2015 was extended as per Ext.P3, up to 30.09.2016. In Ext.P3, it was stipulated that though the period of Bank Guarantee is up to 30.09.2016, the claim period is up to one year after the expiry of the validity of the Bank Guarantee i.e., up to 30.09.2017. The Bank Guarantee was extended from time to time on same conditions. The final extension as per Ext.P8, was up to 31.03.2019 with claim period up to 31.03.2020.