1. The Plaintiff in the present Suit is inter alia seeking a restraint order against Defendant No.1 from in any manner receiving, accepting and/or seeking payments under a Bank Guarantee dated 13th November, 2013 (Exhibit-AA to the Plaint) and bearing No./0500FPEBG130019 (the “said Bank Guarantee”). The Plaintiff has also taken out the present Notice of Motion seeking ad-interim and interim injunctions against Defendant No.1 from receiving and against Defendant No.2 from making any payments to Defendant No.1 under the said Bank Guarantee.

2. Defendant No.1 invoked the Bank Guarantee on 8th March, 2014. After filing the Suit on 11th March, 2014, for the aforesaid reliefs, the Plaintiff moved an ex parte application before this Court for urgent ad-interim reliefs. On that application, this Court: (a) directed Defendant No.2-the Bank to maintain status quo as of that date; and (b) in the event that it had transferred any funds to Defendant No.1, direct the latter not to withdraw /utilize the same until 12th March, 2014. On 13th March, 2014, by consent of the parties, the Notice of Motion was heard finally and the ad-interim order was extended upto 18th March, 2014.

3. Defendant No.1 along with two others was engaged by the Municipal Corporation of Greater Mumbai (“MCGM”) to execute an infrastructure project and allied activities in Mumbai. Pursuant to its engagement, the Plaintiff and Defendant No.1 entered into an Agreement styled as “Purchase Order” dated 18th May, 2010 (Exhibit-B to the Plaint), for “supply of AMR Water Meters for various sizes as per specifications given by the MCGM for the Western Suburbs area of Mumbai”.

4. The material clauses of the said Purchase Order are set out hereunder:

“This is with reference to above mentioned subject. We are pleased to place our formal Purchase Order for supply of the items listed below on the following terms and conditions:

DESCRIPTION QTY UNIT PRICE

US$ TOTAL PRICE US$

CIF JNPT, MUMBAI CIF JNPT, MUMBAI

1. Supply of AMR water

meters of following sizes

as per specifications

approved by the MCGM

along with relevant

software & technology

support

1 15mm 20825 72.60 1511895.00

2 20mm 23800 87.05 2071790.00

3 25mm 12460 142.00 1769320.00

4 40mm 5846 205.30 1200183.80

B) Drive – By + iPAQ

(Hand held unit) 13 3600.00 46800.00

Total order Value : 65,99,988.80

(US Dollar Six Million Five Hundred Ninety-nine thousand, Nine Hundred Eighty Eight and Eighty cents only)

5) REPRESENTATIONS AND WARRANTY: Arad represents that its AMR Water Meters and ancillary equipments like radio modems, hand held units etc. being supplied will meet the expected performance standards as stipulated by the Municipal Corporation of Greater Mumbai. Arad further represents that it has fully familiarized itself with Mumbai and its terrain and is well acquainted with the intended conditions of installation and use of its AMR Water Meters with the entire system of Radio Modems and other ancillary equipments.

The ARAD walk-by/ drive-by AMR system shall be capable so that the meter readings and data extraction can be obtained as and when needed during the entire period of contract. All the necessary technical assistance for this matter shall be provided by ARAD as and when needed.

Based on the above, Arad warranties effective performance of the system including individual water meters for a period of 18 months from the date of installation/commissioning or 24 months from the date of supply whichever is earlier is applicable against any manufacturing defect, poor workmanship and poor materials. Defective Water Meters shall be repaired/replaced and recalibrated and sent back to us within 48 hrs. through our authorized service provider.

10) PERFORMANCE BANK GUARANTEE : The performance guarantee @ 10% of order value is to be submitted in the form of Bank Guarantee drawn on a first class International bank having more than AA rating, valid for 24 months or completion of total supply as per PO, whichever is later, immediately with Let