ORDER :- Canara Bank, R.P. Road, Secunderabad, is the writ petitioner. In the affidavit filed in support of the writ petition, it is stated that the 4th respondent herein having availed certain credit facilities from the petitioner-Bank committed default in discharging the same. Consequently, the petitioner-Bank filed O.A. No.404 of 2000 in the Debts Recovery Tribunal, Hyderabad, for recovery of amount due from the 4th respondent, which is pending.

2. During the pendency of the above proceedings, the 1st respondent-Power Grid Corporation of India Limited had invoked the bank guarantee dated 24.2.1997 furnished by the petitioner-Bank on behalf of the 4th respondent. Accordingly, the petitioner-Bank paid the entire amount covered by the bank guarantee i.e., Rs.2,44,50,362/- to the 1st respondent Corporation. The petitioner claims that the said amount is also due from the 4th respondent.

3. While so, the 4th respondent Company became a sick unit and on a reference made to the Board for Industrial Finance and Reconstruction (BIFR), a case was registered with the BIFR vide Case No.374/2000. Pursuant thereto, by operation of Section 22 of the Sick Industrial Companies (Special Provisions)

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