The judgment of the Court was as follows :––

THE COURT: This is an application for an order as follows:––

"(a) An order of injunction do issue restraining the second defendant, M/s. United Industrial Bank Limited, its servants and or agents to act in terms of the purported Bank guarantee dated 10th August, 1981 executed in favour of State Bank of Hyderabad, the third defendants herein;

(b) An injunction do issue restraining the defendants and each one of them and/or their servants and/or agents from taking any steps in terms of the purported Bank guarantee dated 10th August 1981, executed by the said Messrs. United Industrial Bank Limited, the second defendant in favour of the third defendant, M/s. State Bank of Hyderabad."

Upon such application being made ex parte, the Court passed an order of status quo which was later continued till the disposal of this application. This case arises out of the following facts :––

2. There was an agreement between the plaintiff-petitioner and the defendant No. 1 whereby the plaintiff undertook to carry out certain fabrication works for the first defendant in respect of diverse steel materials. The said agreement, inter alia, provides that the