( 1 ) SOME disputes have arisen between the parties concerning the contract dated 8th August, 2002 entered into between them. Pending resolution of those disputes in terms of clause 10. 48 of the contract which provides resolution of disputes by means of arbitration, present petition is filed under section 9 of the Arbitration and Conciliation Act, 1996 for stay. The petitioner wants restraint order against the respondent from invoking and/or encashing the bank guarantees issued by the Standard Chartered Bank at the request of the petitioner in which the respondent is the beneficiary. Particulars of these bank guarantees are as under:

Bank Guarantee No.

Amount (Rs.)

529020107226-AS

40,590,769

529020107217-AS

77,799,023

529020171352-AP

50,738,482

Total

169,128,274

( 2 ) EX-PARTE order dated 22nd November, 2005 was passed restraining the respondent from invoking/encashing the bank guarantees.

( 3 ) THE respondent has filed a short affidavit opposing the prayer contained in this petition to which the petitioner has filed the rejoinder.

( 4 ) SINCE it is a case of bank guarantee, before taking note of the detailed submissions made by both the parties, it would be apposi