PETROLEUM INDIA INTERNATIONAL Vs. BANK OF BARODA

JUDGEMENT

(1.) THIS notice of motion is taken out by the plaintiff to claim following relief:

(2.) THE factual backdrop brought on record by the plaintiff is that after having entered into contract with the defendant no. 3, the plaintiff, who is a customer of the defendant No. 1-bank, vide its letter dated 15th February, 2006 requested its banker- (defendant No. 1) to issue bank guarantee in favour of the defendant No. 3 ("m/s Abaja Contracting Est. Kingdom of Saudi Arabia") through defendant No. 2 ("the Saudi British Bank")as the plaintiff was awarded contract for dismentaling of the refinery at Riyadh by defendant No. 3 and for rebuilding of refinery at AL-Mukala in. Yemen under phase II.

(3.) THE terms of contract required the plaintiff to submit a bank guarantee for 10% of the contract value being the first payment milestone against advance to be paid by the defendant No. 3.