( 1 ) THIS appeal is directed against the order passed on the application of the plaintiff-appellant praying for an injunction to restrain the State Trading Corporation of India and another from enchashing a Performance Bond/bank Guarantee dated 1st May. 1985. for the sum of Rs. ll,70,000. 00. This Bank Guarantee was issued by the Punjab and Sind Bank infurtherance of a contract between the plaintiff and the State Trading Corporation. There was a contract to supply 7,500 M. T of Grade b Indian Basmati Rice between the State Trading Corporation and the Abu Dhabi Municipality. The contract between the plaintiff and the State Trading Corporation was to supply 3,000 M. T. to the foreign buyer, apparently in furtherance of the original contract. The Bank Guarantee was invoked by the plaintiff on 15th June. 1985. In order to prevent the enchshment of the Guarantee, the present Suit was instituted along with was filed an application under Order 39, Rules 1 and 2 of the Code of Civil Procedure praying for an ad-interim injunction.

( 2 ) THE ad-interim injunction was initially granted by the learned Single Judge (Wadbwa J.), but at the final hearing, the injunction was