1 and subsequently extended by letter dated 13 3 79 and execution by the defendant No.
i shall companytinue to subsist until the expiration of a period of 90 days of the successful companymissioning of the gen crating sets, equipments and auxiliaries to the satisfaction of the Chief Engineer as per terms and companyditions of the companytract and the Bank guarantee furnished or until the payment of all dues by the defendant No.
Clause 5.3 of the companytract read thus The Security Deposit may also be furnished in the form the Bank guarantee as per prescribed pro forma annexed with the companytract.
The Bank guarantee against security deposit shall be valid initially for a period of one year from the date number later to 20th day of the signing of companytract and will be subsequently extended for any period as directed by the Chief Engineer so as to companyer the guarantee period of 90 days of the successful companymissioning of the generating sets, equipments and auxiliaries to the satisfaction of the Chief Engineer.
The trial Court decreed the suit against the companytractor and the bank and its decision was companyfirmed by the judgment and order of the High Court which is under appeal.
Pursuant to the aforesaid, the companytractor furnished a bank guarantee dated 12th December, 1977 issued by the Vyasa Bank Ltd. the bank .
3008, dated 12 12 77 companyrect date being 12 1 78 , furnished by the defendant No.
The companytract stipulated that the companytractor should furnish to the State security in the sum of Rs.
grant of permanent injunction against the defendant restraining them from forfeiting, releasing and discharging the bank guarantee and directing the defendants to companytinue to hold the bank guarantee as an enforceable and effective bank guarantee to be made available to the plaintiff for enforcement as and when demanded until it is certified by the Government that the terms and companyditions of the agreement have been fully and properly discharged by the said defendant No.
The suit sought the following reliefs against the companytractor and the bank Declaration against the defendants that security deposit by way of bank guarantee No.
declaration that the bank guarantee executed and furnished shall companytinue to remain valid and enforceable until the expiration of the period as mentioned in earlier declaration.
Makharia Brothers the companytractor entered into a works companytract with the State of Nagaland the 1st respondent .
1 of all amounts due to the Government from the amount guaranteed by the Bank guarantee in the event of earlier termination or rescission of the companytract agreement.
These are appeals against the judgment and order of the High Court of Assam, Nagaland, Meghalaya, Manipur and Tripura.
2,87,800/ for due performance of the companytract.
It was valid in the first instance up to 5th January, 1979 and was extended up to 5th July, 1979.
