VINDHYA TELELINKS LTD Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THIS first appeal under Section 96 of the Code of Civil Procedure has been filed by the plaintiff against the order, dated 26 -10 -1993 passed by the Second Additional District Judge, Rewa, in Civil Original Suit No. 15 -A of 1990, whereby, the Court below, granting the application of defendant No. 3 respondent No. 1, State Bank of India, has rejected the plaint under Order 7, Rule 11, Civil Procedure Code.

(2.) BRIEF facts leading to the case are that the defendant No. 2, the Emirates Telecommunication Corporation Ltd., floated a tender inviting offers from suppliers and manufacturers for the supply of telephone cables and wires. Under the conditions of the tender, the tenderers were required to submit a tender bond in form of Bank guarantee in a sum of one lac U. A.R. Dirhams, irrevocable and unconditional with the stipulation that the tender bond submitted by the prospective supplier would authorise the defendant No. 1 to withdraw the total amount of guarantee on its first demand without recourse, if the tenderer fails to enter into a contract within the stipulated period or if the tenderer withdraws his tender wholly or in part before the expiration of the validity of the guarantee or if the tenderer fails to deposit the performance bond as specified in the tender enquiry para 3.3 within ten calendar days of the contract.

(3.) THE defendant No. 1 as alleged by respondent No. 1 invoked the bank guarantee with the Bank of Oman which, in its turn, invoked the bank guarantee with the State Bank of India.