ORDER

The matter has been taken up for online hearing through video conference because of COVID-19 pandemic restrictions.

2. The present writ application has been filed seeking a direction to the respondents to return the performance guarantee of a sum of Rs. 45,68,180/- and security deposit to the tune of Rs. 1,82,72,720/-, issued by the Bank of India against a Contract Agreement No. 02/2011 entered into between the petitioner and the Public Health Engineering Department, Government of Bihar. Petitioner’s claim for return of bank guarantee and security deposit is based on Clause-1 of the Agreement, according to which the performance bank guarantee and security deposit were to be kept valid till 28 days beyond the defect liability period. It is the petitioner’s case that despite completion of defect liability period, the respondents are not releasing the bank guarantee.

3. The petitioner has also put to challenge a letter dated 01.07.2020, issued by the Executive Engineer, PHED, Darbhanga, whereby it was directed to renew the bank guarantee for the said Agreement. This is, however, not in dispute that in the light of the said communication dated 01.07.2020 the bank guarantee has been