The appellant has companye up in appeal from the aforesaid order after obtaining special leave.
399/79 dated 10.10.1979 Rs.32.50 lacs , furnished by the Bank to the appellant.
The Bank renewed the Guarantees on the instructions of the respondent.
The United Commercial Bank, Calcutta hereinafter referred to as Bank gave two Bank Guarantees to the appellant on behalf of the respondent.
The other Bank Guarantee is for a sum of Rs.32.50 lacs No.399/79 dated 10.10.1979, renewed on 10.6.1981, 9.7.1982, 22.2.1983 and 7.7.1983, whereby the date of expiry, 10.7.1981, was extended from time to time.
The learned single Judge took the view that as against the agreement between the respondent and the Bank, that the Guarantee No.399/79 will be for only mobilisation advance, the bank had issued the Mobilisation Advance cum Performance guarantee in favour of the appellant in a standard form, which is unjustified.
By an order dated 29.8.1988 a learned single Judge of the Calcutta High Court restrained the appellant by an order of injunction from encashing the Bank Guarantees, bearing No.350/79 dated 16.8.1979 Rs.6.50 lacs and No.
350/79 renewed on 4.5.1982, 10.5.1983 and 3.5.1984 whereby the original date expiring on 15.5.1982 was extended from time to time.
The first is dated 16.8.1979 for a sum of Rs.
The appellant and the responent entered into 11 companytracts dated 21.8.1979 whereby the respondent herein was to companystruct 11 schools in Nalut, Libya at a companyt of LD 2,437,525.000.
6.50 lacs No.
It is seen that disputes arose between the appellant and respondent regarding the performance of the companytract resulting in a reference to arbitration.
The appellant herein was the respondent in Matter No.1268 of 1984, an application filed by the respondent in this appeal under Section 41 of the Arbitration Act.
It is further seen that the reference is still pending.
While so, the respondent prayed to companyrt for the issue of a grant of injunction to restrain the appellant from encashing the Bank Guarantees aforesaid.
Paripoornan, J. Special leave granted.
