( 1 ) BY this order plaintiff s application under Order 39, Rules 1 and 2, CPC for interim injunction against invocation and encashment of bid security Bank guarantee (No. 2/98 dated 12. 3. 1998 issued by defendant No. 2 - Punjab National Bank) on behalf of plaintiff in favour of defendant No. 1 for Rs. 25. 00 lakhs is being disposed of.

( 2 ) BRIEFLY the facts are that defendant No. 1 on 20. 1. 1998 floated a Tender (Tender No. MM/of/121997/000116) for supply of 6f Optical Fibre Cables alongwith accessories for a quantity of 13000 kms. , later increased to 13624 kms. Plaintiff had submitted tender for the same alongwith bid security in the form of a Bank guarantee in the sum of Rs. 25. 00 lakhs as per condition of the bid tender documents. Plaintiff s bid being the lowest was accepted on 15. 4. 1998. However as provided in Clause 11 of Special Conditions of Contract. (Section IV) the quantity to be supplied was allocated among ten lowest bidders by adopting the formula of Vendor Rating. Total quantity to be supplied was fixed at 10898 kms. cables out of which 1008 kms. were allocated to the plaintiff. Defendant No. 1 placed Advance Purchase Order No. CP/apo/068/98-99 dat