( 1 ) THIS judgment disposes of 0. M. P. 62 of 1982 and 1. A. 1719/82. The application (1. A. 17i9/82) is for issue of a temporary injunction restraining the State Bank of Patiala,shardhanand Marg, Delhi from encashment of the bank guarantee given at the instance of M/s. Banwari Lal Radhe Mohan (hereinafter REFERRED TO as the petitioners) in favour of the Punjab State Cooperative Supply and Marketing Federation Limited (hereinafter REFERRED TO and commercially known as MARKFED ). 0. M. P. 62/82 is for issue of a direction to the MARKFED that the latter should not withhold payment of Rs. 24,39)431. 96 during the pendency of the arbitration proceedings between the parlies.

( 2 ) THERE is no dispute in respect of some of the facts. On 14th May, 1981 a contract was entered into between the State Trading Corporation Limited (hereinafter to STC) and M/s. Sulaiman Al-Mohammad Al-Rashid of Saudi Arabia (hereinafter to referred as the foreign buyer) for supply of superior Basmati Sela rice by the former to the latter. STC then entered into some agreements with various parties including MARKFED for the supply of a portion of contracted rice for onward shipment to the foreign buye