( 1 ) BY these Orders I shall decide whether it is proper and just to interdict the encashment of the subject Bank Guarantee. On 29. 7. 2004 an ex parte ad interim injunction had been granted. On the subsequent hearing the plaintiff was directed to ensure that the said guarantee was kept alive, and the Indian bank, Defendant No. 2 was alternatively ordered to encash the Guarantee and retain its proceeds in an escrow account.

( 2 ) THE facts, in brief, are that the Plaintiff had submitted its Tender/bid for the widening of 4-lane and strengthening of existing 2 lane carriageway of NH 17 from Suratkal to nantoor and NH 48 from Padil to B. C. Road and bypass from Nantoor to Padil all in karnataka. The Bid Guarantee for a sum of rs. 1. 73 crores had been furnished in favour of Defendant No. 1 (NHAI) at the time of the submission of the bid by the Plaintiff. Its offer was accepted by Shri B. N. Singh, acting as general Manager (PC) and Director, New mangalore Port Road Co. Ltd. (NMPRCL); the letter-head of the National Highways Authority of India (NHAI) had been used. The Plaintiff was required to furnish the Performance guarantee equal to fifteen per cent of the cont