DHARANI GEOTECH ENGINEERS Vs. INDIAN OVERSEAS BANK

JUDGEMENT

(1.) This writ petition has been filed for a mandamus seeking for a direction to the first respondent to forthwith release and return the deposit of Rs.50.00 lakhs vide Receipt No.2014/NDRP 0997465 dtd. 14/8/2018 along with accrued interest, made by the Petitioner as margin money in respect of the Bank Guarantee bearing No.055971118000024 dtd. 13/8/2018 for a value of Rs.49,38,100.00 issued in favour of the third respondent herein by treating the said Bank Guarantee cancelled as per their letter dtd. 18/8/2020 and 17/9/2020, without insisting on return of original Bank Guarantee from the third respondent.

(2.) It is the case of the petitioner that they had obtained bank guarantee from the first respondent bank on 13/8/2018 for a sum of Rs.49,38,100.00 in respect of the contract they had entered into with the third respondent. According to the terms of contract, the petitioner had agreed to furnish the bank guarantee in favour of the third respondent. According to the petitioner, the bank guarantee issued by the first respondent got expired on 12/8/2019 and further, there is no claim as against the petitioner by the third respondent. Hence, according to them, the first respondent bank will have to refund the sum of Rs.50.00 lakhs deposited by the petitioner with the first respondent bank on 12/8/2018 as margin money for the bank guarantee dtd. 13/8/2018. The petitioner has given a representation to the first respondent for refund of the sum of Rs.50.00 lakhs. Since the representation has not been considered, this writ petition has been filed.

(3.) Heard Mr.J.Ravikumar, learned counsel for the petitioner and Ms.Ananda Gomathy, learned counsel for respondents 1 and 2.