LARSEN & TOUBRO LIMITED Vs. ALLAHABAD BANK, MUMBAI

JUDGEMENT

(1.) At the behest of the Plaintiff Larsen & Toubro Limited ( L & T), Defendant No. 1 -- Allahabad Bank has issued a Performance Bank Guarantee ('PBG') No. 00182131PG000017 on 11th July, 2013 for Rs. 98,35,00,000/- in favour of Defendant No.2 -- GVK Projects and Technical Services Limited ("GVK Projects") which Guarantee is annexed and marked as Exhibit-A to the Plaint. GVK Projects by its letter dated 13th January, 2016 addressed to the Allahabad Bank invoked the said Guarantee dated 11th July, 2013. Pursuant thereto, the above Suit is filed by L & T for a declaration that the invocation of the said PBG by GVK Projects is per se illegal, unjustified, contrary to the contract, mala fide, fraudulent and therefore vitiated and not binding on L & T as also on Allahabad Bank, and that GVK Projects and Defendant No. 3 GVK Ratle Hydro Electric Projects Pvt. Ltd. ("GVK Ratle") are not entitled to receive any amounts thereunder from Allahabad Bank. L & T has also prayed for a permanent order and injunction restraining Allahabad Bank from making any payment under PBG and restraining GVK Projects and GVK Ratle from accepting any payment under the said PBG.

(2.) L & T has also taken out the above Notice of motion seeking a temporary injunction (i) against Allahabad Bank from making any payments to GVK Projects or to GVK Ratle under the said PBG and (ii) against GVK Projects and GVK Ratle from receiving any amounts under the said Guarantee.

(3.) An application for urgent ad-interim reliefs was made before this Court on 13th January, 2016, by L & T seeking to restrain Allahabad Bank from acting upon the invocation of the PBG which relief was granted upto 14th January, 2016. The same was extended from time to time and it was decided that after the parties file their respective affidavits i.e. affidavits-in-reply and the affidavit-inrejoinder, if any, the Notice of Motion shall be heard finally.