ORDER :

The petitioner which undertakes various shipping activities, had entered in to an agreement dated 06.12.2018 with the 1st respondent Corporation for the purposes of “manning and technical management of DCI dredge XIV at various ports in India”. This contract was for a period of one year, which was extendable by another year on behalf of the 1st respondent for a value of Rs.3,99,90,991/-. According to the terms of the agreement, the petitioner was required to offer a performance guarantee in the form of a bank guarantee. Accordingly, the petitioner had furnished a bank guarantee bearing No.0462OBG18022589 dated 04.12.2018 through the 2nd respondent for a sum of Rs.39,99,099/-. The Petitioner was put in possession of the said vessel and started managing the same.

2. By a letter dated 07.08.2019, the 1st respondent claimed default on the part of the petitioner and issued a notice of unilateral termination and takeover of the vessel belonging to the 1st respondent on 21.08.2019. The petitioner replied to the said notice on 12.08.2019 and sought amicable resolution of the issues. As there was no response, the petitioner again sent an e-mail dated 19.08.2019, denying the claims of