STATE BANK OF INDIA Vs. VINDHYA TELELINKS LTD.

JUDGEMENT

(1.) THIS miscellaneous appeal is directed against the order rejecting the application filed by the appellant in the trial Court under Rule 4 of Order XXXIX of the Code of Civil Procedure refusing to vary or set aside the order of injunction passed against the appellant and respondents 2 and 3 and postponing the decision, on the appellant's application filed under Rule 11 of Order 7 C.P.C., after the framing of issues.

(2.) FACTS relevant for the decision of this appeal may briefly be stated. Respondent No.2/defendant No.1 floated a tender -enquiry inviting offers from suppliers and manufacturers for the supply of telephone cables and wires. Under the conditions of the tender - enquiry, the desirous suppliers intending to participate were required to submit also a tender bond in the form of Bank Guarantee, in the sum of one lakh U.A.E. Dirhams, irrevocable and unconditional with the stipulation that the tender bond submitted by the prospective supplier would authorise respondent No.2/defendant No.1 to withdraw the total amount of the guarantee of its first demand without recourse, if the tendered fails to enter into a contract within the stipulated period or if the tendered withdraws his tender wholly or in part before the expiration of the validity of the guarantee or if the tendered fails to deposit the performance bond as specified in the tender - enquiry para 3.3 within 10 calendar days of awarding the contract.

(3.) BUT respondent No.2/defendant No.1 invoked the Bank Guarantee with respondent No.3 which in its turn, invoked the Bank Guarantee with the appellant, the State Bank of India. In the suit filed by respondent No.1 in the Court below for declaration and the relief of permanent injunction against respondents 2, 3 and the appellant was also sought. It was prayed that respondent ~0.2 be restrained from claiming and respondent no.3 and the appellant from making any payment of the amount under the Bank Guarantee to respondent No.2. The plaint also accompanied an application under Rules 1 and 2 of Order XXXIX of the Code of Civil Procedure for seeking temporary injunction in the same terms and the learned trial Court on 24.9.1990, passed the ex -parte order of injunction st the appellant and respondents no.2 and 3 restraining no.2 from claiming encashment of the Bank Guarantee and respondent no.3 and the appellant from making payment thereof.