JUDGMENT

Manju Goel, J.(Oral)

1. This is a petition under section 9 of the Arbitration & Conciliation Act, 1996 seeking an order of restraint against the respondent, namely, Municipal Corporation of Delhi, from invoking the bank guarantee No.40630 dated 22.7.2005. The facts briefly stated in the petition are as under:

The petitioner, M/s. Engineering Development Corporation, is a class-I contractor who obtained a work order for construction of Outfall drain for disposal of storm water/waste water of Devli village in south zone to be constructed at an estimated cost of Rs.3,44,60,000/-. The work was to start on 9.10.2005 and was to be completed within six months thereof, i.e., by 8.4.2006. The petitioner was required to give a performance guarantee for a sum of Rs.7,80,000/- and accordingly the petitioner submitted the unconditional and irrevocable bank guarantee No.BG-40630 dated 22.7.2005 valid for a year. The petitioner made its preparation to start the work but was physically prevented by the residents of Sainik Farms, who are residents of the area in which the construction work had to be undertaken. The petitioner wrote several letters to the respondent for handing over the s