HEMANG RESOURCES LIMITED Vs. BANK OF INDIA

JUDGEMENT

(1.) The appellant before this Court, a Company registered under the provisions of the Companies Act, 1956, has filed this present miscellaneous appeal under Section 13 (1-A) of the Commercial Court Act, 2015 r/w Order XLIII of the Code of Civil Procedure, 1908 being aggrieved by the order dated 08.08.2020 passed by the VII Additional District Judge in Case No.RCS-A 1280/2017.

(2.) The facts, as stated in the appeal, reveal that the appellant is a Company registered under the provisions of the Companies Act, 1956 and respondent No.3 is again a Company registered under the provisions of the Companies Act, 1956. The appellant/Company entered into an agreement with respondent No.3/Company for dispatch of washed coal from the washery of respondent No.3 to the stockyard as well as for coal handling, siding, transportation and loading of washed coal into railway wagons. The appellant/Company has stated in the memo of appeal that the agreement was reduced in the form of work order dated 29.09.2015 and the same is also on record as Annexure-A/1.

(3.) It has been further stated by the appellant/Company that pursuant to the work order dated 29.09.2015, the appellant/Company has furnished a bank guarantee to the tune of Rs.5,00,00,000/- in favour of respondent No.3/Company issued by Bank of India, Indore Branch dated 07.10.2015. It has been stated that no work was carried out by respondent No.3/Company, however, the bank guarantee was extended from time to time and finally, keeping in view the fact that the work order was not financial viable, the work order was cancelled on 07.11.2017.