CT RAMANATHAN INFRASTRUCTURE Vs. GM SOUTHERN RAILWAY

JUDGEMENT

(1.) THIS application under Order XIV Rule 8 of O.S. Rules r/w Order 39 Rule 1 and 2 C.P.C. r/w section 9(ii) (b) of Arbitration Act has been filed for injunction restraining the respondents from encashing the Bank Guarantee No.0528/GPER016910, dated 16.10.2010 furnished by the applicant in respect of LOA No.M/W 496/Works/6633 dt.24.5.2010 and from recovering the Security deposit of the applicant from other contract works of the applicant pending resolution of the disputes between the applicant and the respondents by Arbitral Tribunal to be appointed by the first respondent under Clause 64 of the General conditions of Contract.

(2.) IT is pleaded case of the applicant that the second respondent issued a Tender Notice No.MAS/01/Works/2010, dated 22.1.2010 inviting tenders in respect of several items of work. The bid of applicant was accepted by the respondent No.4 vide Acceptance letter dated 24.5.2010, issued in favour of the applicant. In terms of the Letter of allotment, the applicant furnished Performance Guarantee by way of "Bank Guarantee" of Rs.10,40,460/- (Rupees ten lakhs forty thousand four hundred and sixty only). The work was to be completed on or before 23.2.2011 i.e., within a period of nine months.

(3.) IT is the case of the applicant that the fourth respondent terminated contract on 18.4.2012. The applicant therefore invoked arbitration clause, to claim compensation for illegal termination of the contract by the respondent.