( 1 ) THIS is a petition under Section 41 read with Schedule B of the Arbitration Act, 1940 (for short "the Act") seeking injunction against invoking and encashing of a Bank Guarantee.

( 2 ) THE respondent had awarded to the petitioner the work of construction of 52 Nos. Type d residences for IFFCO Township at Aonla, near Bareilly (U. P.) by means of letter No. 9/6/142 dated 10. 10. 1985 followed by a formal contract executed on 16. 12. 1985. The total cost of the project was Rs. 1,93,21,192. 40 and the work was to be completed within a period of 15 months. The contract provided for furnishing by the petitioner of performance Bank Guarantee equivalent to 5% of the value of the work valid for a period of 12 months till after the completion of the work. Bank Guarantee No. 23/87 dated 22. 12. 1987 in the sum of Rs. 11,50,000. 00 of State Bank of Indore, Gandhidham Branch was furnished. The case of the petitioner is that they completed the work to the satisfaction of the respondent and a completion certificate dated 16. 9. 1987 (Annexure "d") was issued by the respondent and no complaint about the work was made either during construction or after 12 months of its completion