ASHIM KUMAR BANERJEE, J.

1. BACKDROP VISA Power Limited (hereinafter referred to as "VISA") decided to set up a Thermal Power Plant at Raigarh in the State of Chattrishgarh. VISA issued a Letter of Award in favour of Larsen and Toubro Limited (hereinafter referred to as LandT) entrusting them to set up two units of a power project having capacity of six hundred mega watt at a cost of Rs.1610.01 crores. The Letter of Award would require three bank guarantees to be executed by LandT in favour of VISA through their banker, one would relate to performance guarantee to the extent of Rs.1610 crores and the other two against the advance that VISA would make to LandT that would be reduced in phases simultaneously, on payments being adjusted as against the running bills. LandT duly issued guarantees on September 23, 2010 and January 25, 2011 for advance guarantees of Rs.40.25 crores each and on November 20, 2010 as performance guarantee for Rs.161 crores. The work started in January 2011 however, the parties entered into four number of formal contracts on December 7, 2011. Initially, there was no dispute. The guarantees were being reduced in phases. As on the date of the controversy