The appellant-Board herein is carrying on the business of supply of electricity in Andhra Pradesh and it calls in question the order passed on I.A. No. 1 by the Trial Court restraining the appellant from invoking the two Bank guarantees executed by respondent 1 and the main ground urged in the appeal is that the Trial Court could not have prevented the appellant from encashing the amount of the two Bank guarantees bearing Nos. 12/91 and 13/91, both dated 27-3-1991, and the Trial Court has totally erred in following the law laid down by the Apex Court with regard to the Bank guarantees.

2. Sri G.V. Shantharaju, learned Senior Counsel for the appellant, submitted that in respect of the work undertaken at Shrishailam left Bank power station with an installed capacity of 990 MW with external assistance from Overseas Economic Corporation Fund, Japan in the year 1991, as the project involved installing belt conveyor system, the appellant called for tenders for design, fabrication, supply, erection, commissioning, operation and maintenance of belt conveyor system and the tender offered by respondent 1 herein was accepted and an agreement was entered into between the appellant and