AIMS INDIA P LTD Vs. INDIAN BANK

JUDGEMENT

(1.) The petitioner who undertook a contract job to manufacture and supply one complete secondary screening system for paper machine (Newsprint) with the respondent No.2 said to be a 'State' within the meaning of Article 12 of the Constitution of India has filed this writ application, inter alia, for the following reliefs :-

(2.) The admitted facts are that an order was placed by the respondent No.2 upon the petitioner in respect of the aforementioned contract on 28th March, 1990, pursuant whereto a performance guarantee was furnished on 27th February, 1991 which was although valid for a period upto 30th September, 1992 was evidently extended upto 30th June, 1994.

(3.) By a letter dated lst June, 1994 a request was made by the respondent No.2 to respondent No.1 to extend the bank guarantee upto 30th December, 1994 in regard whereof a request was also made to the petitioner. By a letter dated 7th/14th June, 1994 the respondent No.2 invoked the bank guarantee in the event the same was not extended upto 30th December, 1994 with a request to the petitioner to extend the same within a period of six months. The said letter reads thus:- REGD. A/D Dated 07/14.06.94.