( 1 ) THIS is a petition filed on behalf of M/s. Ansal Properties, and Industries Ltd. (hereinaf[erreferredtoas the petitioner)under Section41 of the Arbitration Act, 1940 read with Schedule-11 thereof and Section 151 of the Code of Civil Procedure against the respondents and in this petition it has been prayed that respondents by themselves, their employees or agents be restrained from invoking and encashing the bank guarantee No. 13/00 datied 10. 9. 90forrs. l3,07,000. 00 valid upto30. 6. 94 and bank guarantee No-3/89 dated 20th January, 1989 forrs. 25,99,000. 00 valid upto 30th April, 1994 furnished by the petitioner.

( 2 ) BRIEFLY stated the facts of the case are that on or about 15th February, 1988, the respondent No. 2 actling for and on behalf of President of India invited sealed tenders for the designs and construction of viaducts, side and catch water drains and earthwork in formation in cuttings and in embankment in Zone No. E-11 on Jammu-Udhampur rail link project. Pursuant to the acceptance of the tender of the petitioner, an agreement was entered into on February 22, 1989 between the President of India acting through respondent No. 2 and the petitioner for