TEXMACO LTD Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) This is an appeal from the judgment an order dated 12th May 1978 delivered by Sabyasachi Mukherji, J. By and under the said judgment and order his Lordship dismissed the appellant's application for injunction restraining the defendant No. 1 State Bank of India from making any payment to the defendant No. 2 or defendant No. 3 under a Performance Guarantee mentioned in paragraphs 8 and 9 of the petition. By the said order His Lordship was further pleased to reject the appellant's prayer for injunction restraining the defendant No. 2 or the defendant No. 3 from enforcing or realising any payment under the Performance Guarantee mentioned hereinabove.

(2.) Being aggrieved by the said judgment and order the appellant has come up in appeal before this Court. In order to appreciate the questions involved in the appeal, we shall briefly relate the facts leading to the making of the application.

(3.) The State Trading Corporation of India (hereinafter referred to as S. T. C.) canalizes the export trade of the country in various commodities including Wagons. On October 23, 1970 the S.T.C. agreed to manufacture in India and supply in Yugoslavia to the community of Yugoslav Railways known as ZTPS 1300 GAS type and 2300 EAS type of wagons. The said contract briefly referred to hereinafter as the Export Contract inter-alia includes the following provisions: