ARUNA SURESH, J.

( 1 ) THIS is a petition under Section 9 of the Arbitration and Conciliation act, 1996 (hereinafter referred to as 'act') filed by the petitioner against the respondents seeking interim relief for restraining the respondent No. 1 from encashing/invoking Letter of Credit No. DIA101180 for 321346. 14 Euro (Rs. l,89,72,276. 11p in Indian currency) or in the alternative some interim measure or relief be provided to the petitioner to secure the amount of 1,83,754. 91 (Rs. l,08,48,889. 89p in Indian currency) till the dispute in the proposed arbitration between the petitioner and the respondent No. 1 is adjudicated upon by the arbitral tribunal.

( 2 ) PETITIONER company entered into three separate agreements with the respondent for supply of manufactured goods/items to the petitioner. These agreements are:

(1) Consignment Contract No. PJN 1192/07 dated February 22, 2007 for supply/export of Fitted Bed Sheet, solid color, knitted 100% polyester micro fiber, single jersey 135-140 gsm with rubber band stitched inside around the whole sheet size 100 X 200+27 cms edges around with machine washable 60 decrees of the value of 74648. 88 Euro. (2) Consignment Contract No. PJN 1194/07 dated February 22, 2007 for supply/export of roman Shade, printed 100% Polyester micro fiber 110 gsm, size 100 x 170 cms with wooden bar on top, with 2 metal ears, with metal weight bar on bottom including fixtures (2 hooks, 2 dowels, 2 screws) with colour matching draw rope of the value of 1,12,797. 60 euro. (3) Consignment Contract No. PJN 1198/07 for supply/export of children bed set, 2 pieces set, printed 100% polyester micro fiber 110 gsm, duvet covers and pillow case with color matching YKK-zipper with white plastic head, with machine washable 60 decrees of the value of 1,33,860 euro.

( 3 ) AS per the agreements, respondent No. 1 was required to provide oekotex standard 100 certificate free of charge. On the request of the petitioner, respondent No. 3, the bankers of the petitioner at Germany, opened an irrevocable Letter of Credit (hereinafter referred to as 'l/c')bearing No. DIA101180 dated 17. 7. 2007 for 3,24,716. 64 Euro with date and place of expiry being September 03, 2007 and D-Bielefeld in favour of respondent No. 1.

( 4 ) THE amount of the L/c was reduced for short supply of consignment goods and also because of some consignments of goods relating to fitted sheets of orange colour and yellow colour were found on testing by accredited textile laboratory in Germany 'forschungsinstitut Hohenstein' mutually appointed by the petitioner and the respondent No. 1, to be contaminated with forbidden AZO dye stuff and they did not comply with the Oekotex 100 standards.

( 5 ) THE consignment goods sent under contract No. PJN 1194/07 were sent on the condition that if the petitioner's final client cancelled the order on account of non production of valid Oekotex 100 Standard certificate, the petitioner shall have the right to return the goods to the respondent No. 1, and to claim back the paid amount. The consigned goods under the consignment contract No. 1194/07 were rejected by the final client at germany and the goods had to be transported back by the petitioner. Petitioner claims a total amount of 183754. 91 Euro inclusive of his transportation and penalty charges imposed upon it by the final client against respondent No. 1. Since there is an arbitration clause in the agreements, present petition has been filed by the petitioner under Section 9 of the Act seeking interim relief for restraining the respondents from encashing the Letter of Credit.

( 6 ) RESPONDENT No. 1 has contested this petition alleging that as per article 3 of the UCP in case of an irrevocable bank guarantee or L/c, the buyer cannot obtain injunction against the banker or the seller on the ground that there was a breach of the contract by the seller. Respondent No. 2 to 4 are not a party to the agreements and therefore, petition under Section 9 of the Act is not ma