JUDGMENT

Pradeep Nandrajog, J. (Oral)--We have summoned the record of OMP No.138/2013 and CS (OS) No.1115/2004. Learned counsel for the parties have been heard.

2. Under a contract the first respondent supplied a conveyor belt to the appellant and amongst other bank guarantees, the second respondent at the asking of the first respondent gave a bank guarantee in favour of the appellant. The supply was made and a dispute arose regarding the quality of the conveyor belt. The appellant threatened to invoke the bank guarantees. The respondent filed a suit for permanent injunction impleading Central Bank of India and the appellant as defendants. Various guarantees issued by Central Bank of India at the instance of the appellant were prayed as not encashable; with an injunction sought against the bank to pay under the guarantees. Ultimately, the performance guarantee in sum of Rs.8,89,473/- became the subject matter of consideration in the said suit because the defence taken was that the conveyor belt supplied by the respondent No.1 to the appellant was defective. After the pleadings were completed and documents were filed the parties consented that the dispute may be referred to the ar