( 1 ) THIS appeal under S. 10 of the Delhi High Court Act, 1966 is directed against the order dt. Feb. 4, 1987 passed by Hon ble Mr. Justice G. C. Jain, a learned single Judge of this Court dismissing an application of the appellant under S. 41 read with Schedule II of the Arbitration Act, 1940 for the grant of interim relief restraining the National Project Construction Corporation Ltd. from enforcing the bank guarantee dt. July 25, 1985 furnished by the United Commercial Bank at its branch at Calcutta.

( 2 ) M/s. National Hydro Electric Power Corporation Ltd. (for short called the NHPC) floated tenders in respect of the construction of one of the component units of the project known as the "power House Block". The National Projects Construction Corporation Ltd. , the respondent, was awarded the work. The appellant was awarded subsequently as a sub-contractor the work of Construction of Protection Block and Stage-11 Power House and ancillary work Salal Project at an estimated cost of Rs. 3,25,28,330. 00. An additional work was entrusted to the appellant on July 12, 1984 at an estimated value of Rs. 1,87,94,132. 00. A formal contract was executed between the pa