GIS LTD Vs. INDIANA CONVEYORS LTD

JUDGEMENT

(1.) These are two applications under section 9 of the Arbitration and Conciliation Act, 1996 filed by one of the contracting parties to a contract agreement. The petitioner has asked for the following reliefs from the court :

(2.) At first sight, and on first impression this case also appeared to be yet another in the long series of cases coming up in the courts from time to time relating to the restraint orders against the invocation or encashment of unconditional Bank Guarantees executed by a Bank in favour of the beneficiary. After the arguments however have been concluded, I am convinced that this is not one of those usual cases where a party to a contract has come to court seeking a restraint order against the encashment/invocation of the bank guarantees. This case, both on facts as well as in law stands on an entirely different footing. Brief facts first :

(3.) The scope of the work has been defined in Clause 1 of the Work Order. It includes the work of the supply of structural Steel and fabrication as per the fabrication drawings to be given by the respondent to the petitioner. It also includes the work of sand blasting and painting of structurals as per the technical specifications to be given to the petitioner by the respondents. The quantum of work approximately has been mentioned at 700 M.T. and in the price column it is mentioned that Rs. 26,000/-per M.T. would be the rate/price charged by the petitioner from the respondents. The delivery period has been mentioned as 15th June, 1998. The clause relating to payment terms, being very important for our purposes is reproduced verbatim herein below. It reads as under :