( 1 ) IN the present suit instituted by the plaintiff a decree for permanent injunction is prayed for by the plaintiff against the defendant No. 1 restraining it from encashing or seeking to encash or recovering the whole or any part of the amount with respect to the bank guarantees given by the defendant No. 2 to the defendant No. 1 on behalf of the plaintiff. On or about 5. 4. 1990 Indian Railway Construction Corporation (in short REFERRED TO to as IRCON) awarded the contract of construction of Railway Station and Commercial Complex at Belapur to defendant No. l. The defendant No. 1 on its part desired to split up the total contract work into smaller parts and give the same on subcontracts. The plaintiff submitted its tender for a part of the works proposed to be sub- contracted by defendant No. 1 and in pursuance thereof on or around 14. 11. 1990 the defendant No. l issued a letter of intent and around 22. 11. 1990 the defendant No. 1 issued a work order to the plaintiff company. In terms of the agreement between the defendant No. l and the plaintiff the plaintiff was entitled to raise mobilisation advance to the extent of 5% of the contract value and the said m