SANJAY KISHAN KAUL, J.

( 1 ) THE petition has been filed under section 9 of the Arbitration and conciliation Act, 1996 seeking stay of the encashment of two bank guarantees by respondent no. 1-bank for the benefit of respondents no. 2 and 3.

( 2 ) THE bank guarantees were given for due performance of the obligations of the petitioner in respect of a contract to be performed at Tajikistan. The contract contains arbitration clause no. 70.

( 3 ) LEARNED counsel for the respondents no. 2 and 3 has pointed that out of the two bank guarantees one of the bank guarantees no. 71/2004 dated 12. 07. 2004 for an amount of USD 96,000 already stands encashed and the amount credited to the account of the respondents no. 2 and 3. Thus relief to that extent has become infructuous. The other guarantee is bearing no. 72/2005 dated 20. 06. 2005 for USD 1,00,000.

( 4 ) LEARNED counsel for the petitioner contends that on the one hand respondents asked the petitioner to extend the bank guarantee as per the letter dated 17. 04. 2006 while on the other hand the bank guarantee was soon thereafter invoked by the letter dated 20. 04. 2006 while the petitioner was in the process of taking steps for extension o

Click Here to Read the rest of this document