JUDGMENT :

Leave granted.

2. Whether the High Court is justified in exercising its discretionary jurisdiction under Article 226 of the Constitution of India for restraining the appellant from invoking an unconditional bank guarantee executed by the first respondent, is the main issue arising for consideration in this case.

3. The appellant invited bids for development of Sutrapada Port. In the process, a Letter of Intent (hereinafter referred to as ‘LoI’) was issued to the first respondent on 06.02.2008. The relevant conditions of LoI are extracted below:

1.7 The Lead Promoter shall submit a detailed project report within 12 months of issue of this Letter of Intent (LOI) and present it to Gujarat Maritime Board for their approval.

1.8 The Lead Promoter shall obtain all environment clearances and coastal regulation zone (CRZ) clearances and effective financial closure and all such other clearances and permissions within 18 months or issue of this Letter of Intent.

1.9 A Performance Guarantee/Bank Guarantee of Rs. 5 Crores (Rupees Five crores only) shall be submitted to Gujarat Maritime Board within 4 weeks of issue of this Letter of Intent in the Performa annexed herewith. (Annexure1).