RAJIV SAHAI ENDLAW, J.

1. The plaintiff has sued for declaration that the invocation dated 30th October, 1996 by the Ministry of Communications Department of Telecommunications of the defendant No.1 Union of India of the bank guarantee issued by the defendant No.2 Bank at the instance of the plaintiff in favour of the defendant No.1 is contrary to the terms of the guarantee and that the defendant No.1 is not entitled to invoke the said guarantee and for permanent injunction restraining the defendant No.2 from making payment under the guarantee and also for mandatory injunction directing the defendant No.1 to negotiate in good faith the terms and conditions of the licence and the interconnect agreement for which the bid of the plaintiff to the defendant No.1 had been accepted by the defendant No.1.

2. Vide interim order dated 1st November, 1996 after issuance of notice to the defendants and finding that the defendant No.1 had already invoked the bank guarantee, the defendant No.2 bank was restrained from remitting the proceeds of the bank guarantee to the defendant No.1. The plaintiff was, however, asked to keep the bank guarantee alive. On 28th August, 1998 on an appl