JUDGMENT

Kirpal, J.-Special leave granted.

2. Having been thrawted by orders of the Court below in its attempt to get encashment of the bank guarantees, issued by the State Bank of India, Meerut Cantt, Branch (respondent No. 2) respondent No. 1 has led to the filing of this appeal by the aggrieved beneficiaries.

3. The appellant and respondent No. 1 had entered into an agreement on 27th July, 1994 whereby respondent No. 1 was to supply boiling house equipment the costs of which was Rs. 5.23 crores. The supply of equipment and material was to start from 15th September, 1994 and the same was to be completed by 10th August, 1995, as per the schedule of the supply agreed to by the parties.

4. According to one of the clauses of the aforesaid agreement respondent No. 1 had agreed to furnish bank guarantees in favour of the appellant. Out of the above six, only four bank guarantees were furnished including bank guarantee No. 40/51 dated 1st December, 1994 for a sum of Rs. 26,15,000/- and bank guarantee No. 40/47 dated 24th November, 1994 for a sum of Rs. 35 lacs. These are the bank guarantees with which we are concerned in the present case.

5. Bank guarantee No. 40/51 was issued to ensure time