JUDGMENT

Nanavati, J.-These two appeals, by special leave, are directed against the Judgment and Order passed by the Andhra Pradesh High Court in Civil Revision Petition No. 3865 and 3866 of 1989. The High Court allowed the revision petitions, set aside the common order passed by the Subordinate Judge, Visakhapatnam in O.P. No. 456 and 457 of 1988 and passed an order of injunction restraining Hindustan Steelwork Construction Ltd. (the appellant and for short referred to as HSCL) from encashing the bank guarantees given by Bank of India in its favour at the instance of M/s. Tarapore & Co. (Respondent No. 1 and hereinafter referred to as the contractor).

2. The HSCL awarded a contract to the contractor for construction of civil works in its Visakhapatnam Steel Plant. On. 16 .3.84 a letter of intent was issued and the formal contract was signed on 25.10.84. It was a lumpsum contract for Rs. 19,21,36,804 and was to be completed on or before 15.11.1985. The contractor was not able to complete the work within the stipulated time and at its request the time for completion of the work was extended till 31.3.87. Even during this extended period the contractor could not complete the work.