JUDGMENT - Dr. B.P. SARAF, J. :---This appeal is directed against the judgment and order of the learned Single Judge dated 17th June, 1991 in Notice of Motion No. 78 of 1989 in Suit No. 1056 of 1988 restraining the appellants from invoking the Bank guarantee furnished by respondent No. 1.

2.The material facts of the case relevant for deciding controversy in this appeal, briefly stated, are as follows : The respondent No. 1 M/s. Richardson Cruddas (1972) Ltd., Bombay, had entered into an agreement dated 27th October, 1985 ("Agreement") with the appellants, M/s. Kisan Sahakari Chini Mills Limited, Shahjahanpur, Uttar Pradesh, for setting up of a sugar plant at Lucknow for an aggregate price of Rs. 4.55 crores. To secure timely delivery, erection and commissioning of the plant and machinery as provided in Clause 15.1.1 of the said agreement, the respondent No. 1 was required to furnish a Bank guarantee to the appellants for a sum of Rs. 22.75 lakhs representing 5% of the contract price. The said Bank guarantee was to enure till the successful completion of the trial operation of the plant as provided in Clause 7.3 of the agreement. The plant was commissioned on 8th December, 1987. Th

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