( 1 ) THIS is an application for injunction restraining the defendant No. 1, Steel Authority of India Ltd. from enforcing or calling up the Bank Guarantee dated 31-8-1982 for Rs. 30,00,000/- given by the defendant No. 2, United Bank of India in favour of the defendant No. 1. The defendant No. 1 gave a contract to the plaintiff for dredging and deepening a reservoir at Durgapur. To enable the plaintiff to bring the machinery and start the work, the defendant No. 1 advanced Rs. 30,00,000/- to the plaintiff. To secure the said advance of Rs, 30,00,000/- paid by the defendant No. 1 to the plaintiff, the plaintiff gave the said Bank Guarantee through the United Bank of India.

( 2 ) MR. Biswaroop Gupta, learned Counsel for the plaintiff, submitted the plaintiff was induced to obtain the said contract by the defendant No. 1 by suppression of material facts, that the reservoir which was to be cleaned and deepened could not be deepened inasmuch as the bed of the reservoir which was shown in the plan given to the plaintiff as plain and without any undulations was formed and created by inundating a village with a Railway siding and various other structures and facilities f