M/S KRISHNA Vs. UNION OF INDIA

JUDGEMENT

(1.) This order shall dispose of RSA Nos. 2522, 2523 and 2524 of 1985, titled Krishna & Co. v. The Union of India and Ors.; Asha and Co. v. The Union of India and Ors. RSA No. 2523 of 1985; and Deen Dayal Purshotam Lal v. The Union of India and Ors. RSA No. 2524 of 1985, respectively, as common questions of law and facts, are involved in these appeals.

(2.) For the sake of brevity, facts are being taken from RSA No. 2522 of 1985.

(3.) The Appellant-Plaintiff filed a suit for permanent injunction restraining Defendants No. 1 and 2 from an enforcing/encashing four bank guarantees, two dated 28.8.1980 and two other dated 10.9.1980, given by the Defendant No. 3 on behalf of the Plaintiff in respect of contracts dated 11.8.1980 and 22.8.1980 bearing No. 3(1)79-80/Regd. BD/Cot-ton/23/5935 and No. 3(1)79-80/Regd. BD/Cotton/24/5936, respectively. The case set up by the Plaintiff-Appellant was that a press note dated 4.8.1980 was issued by the Textile Commissioner Cotton/Defendant No. 2, to the effect that Union of India permitted the intending vendors to export 14,000 bales of Bengal Desi Cotton to all permissible destinations subject to the conditions that the last date of shipment would be 31.12.1980 and that payment be made by cent percent irrevocable non-transferable letter of credit to be opened by the buyers on a prime bank in favour of the sellers prior to shipment. That the exporters would have to furnish along with their application a performance guarantee in the form of a bank guarantee at the rate of ' 150/- (Rupees one hundred fifty only) per bale for number of bales applied for and that the exporters for allocation of quota would have to furnish a further bank guarantee at the rate of '350/- (Rupees three hundred fifty only) per bale within seven days of the issue of allocation letter in their favour.