( 1 ) THE petitioner entered into a contract with the Union of India for the construction of residential accommodation for certain units at Meerut being agreement No. CENZ/ MRT/e/34 of 1971-72 (hereinafter referred to as Contract agreement ). The contract agreement was subject to General Conditions of Contracts as contained in I. A. F. W. 2249. Under Clause 64 of the said General Conditions of Contracts, the petitioner/contractor was entitled to running payments at intervals of not less than one month. Such running payments were to be made up to the extent of 90% of the value of work executed and the remaining 10% could be retained by the Union of India as a reserve in case of works not exceeding Rs. 5 Lacs; 7% on the next Rs. 5 Lacs and 5% on the balance after the first Rs. 10 Lacs. In one of the provisos to said clause 64 it was provided that the contractor may be paid advance on account to the full value of work executed on the site on his furnishing Guarantee bond (s) from a Scheduled Bank for the amount of the retention money which should otherwise be recoverable from him under the contract, that the said bond shall be executed for a period and on a form as directe