Sanjeev Sachdeva, J.

1. The appellant impugns order dated 28.08.2015 passed in OMP(I) 489/2015 whereby the learned single judge, in a petition under section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act), has been pleased to restrain encashment of the bank guarantee No. 17/14 dated 28th May, 2014.

2. The Appellant had issued a Letter of Intent in favour of the Respondent No. 1 on 23.04.2014 for transportation of materials from BHEL/B & R/Client Stores/Storage Yard to work site, erection, alignment, testing and commissioning, trial, operation and handing over of boiler structure and its auxiliaries including piping, insulation, final painting etc. for unit 4 of 2 x 660 MW NTPC, Mouda Project, District Nagpur on back to back basis.

3. In terms of the letter of intent, the Respondent No. 1 submitted with the Appellants, the Bank Guarantee No. 17/14 dated 28th May, 2014 with an aggregate limit of Rs. 36,64,392/-, in lieu of Cash Deposit against Security and due and faithful Performance of the said contract. The Bank Guarantee was issued by Canara Bank / Respondent No. 2.

4. The Bank Guarantee stipulated as under:

“We, CANARA BANK a body regis