FOUNDATION OVERSEAS LTD Vs. PUNJAB NATIONAL BANK LTD

JUDGEMENT

(1.) This appeal is from an order dated 25th June, 1976 passed by the Court below recalling the order of dismissal of the suit upon condition that the plaintiff would deposit a sum of Rs. 7,50,000 in cash with the Registrar of this Court and in default thereof, directing the plaintiff's application for restoration of the suit to stand dismissed for non-prosecution with no order as to costs.

(2.) The operative part of the order reads as follows :--

(3.) The suit herein has been filed on 23rd Sept, 1965, inter alia, for a decree declaring the bond dated 31st October, 1963 and its purported extensions void and for an order directing the said bond to be delivered up and cancelled. There are also prayers for ancillary relief by way of perpetual injunction in respect of the said bond. Incidentally, it may be mentioned that the said bond was executed in terms of a clause in the global tender which required the execution of such a bond. Accordingly, the said bond was furnished in favour of the State of Uttar Pradesh through the Punjab National Bank for the sum of Rs. 27,60,000. Thereafter, disputes arose by and between the plaintiff and the State of Uttar Pradesh in which the plaintiff contended that the bond should be delivered up and cancelled but the said defendant contended that the same should be enforced. Ultimately, the plaintiff filed this suit and prayed for its cancellation. The State of Uttar Pradesh was thereafter added as a party to this suit.