The court reinforced that unconditional bank guarantees cannot be restrained unless egregious fraud or irretrievable injustice is established, which was not proven by the petitioner.

JUDGMENT

[Hearing held through video conferencing]

Vibhu Bakhru, J. (Oral)--The petitioner has filed the present petition under Section 9 of the Arbitration and Conciliation Act, 1996 (hereafter `the A&C Act'), inter alia, praying as under:

"i. In view of the above facts and circumstances mentioned hereinabove, it is most respectfully prayed that the Hon'ble Court may graciously be pleased to allow the present petition and restraint by way of injunction the Respondent No. 1 from invoking and encashing the following Bank Guarantees:

(i) Performance bank Guarantee No. 0767ILG004020 dated 14.08.2020 amounting to Rs.1,59,88,000/- issued by Respondent No. 2.

(ii) Bank Guarantee No. 0767ILG004220 dated 24.08.2020 amounting to Rs.2,56,39,000/- deposited in lieu of release of Security Deposit.

(iii) Bank Guarantee No. 0767ILG001519 dated 12.09.2019 amounting to Rs.66,00,000/- and Bank Guarantee No. 0767ILG001719 dated 27.09.2019 amounting to Rs.48,87,569/- deposited for the release of mobilization advance.

Till the (i)Appointment of the Arbitrator for Adjudicating the disputes (ii) Till the Arbitral Award is passed and (iii) Till the enforcement of the award in accordance with Section 36 the Arbitration & Conciliation Act, 1996 as amended;

ii. Hon'ble Court may graciously be pleased restraint by way of injunction the Respondent No. 2 Bank from remitting the Following Bank guarantees to the Respondent No. 1:

(i) Performance bank Guarantee No. 0767ILG004020 dated 14.08.2020 amounting to Rs.1,59,88,000/- issued by Respondent No.2.

(ii) Bank Guarantee No. 0767ILG004220 dated 24.08.2020 amounting to Rs.2,56,39,000/- deposited in lieu of release of Security Deposit.

(iii) Bank Guarantee No. 0767ILG001519 dated 12.09.2019 amounting to Rs.66,00,000/- and Bank Guarantee No. 0767ILG001719 dated 27.09.2019 amounting to Rs.48,87,569/- deposited for the release of mobilization advance.

Till the (i)Appointment of the Arbitrator for Adjudicating the disputes (ii) Till the Arbitral Award is passed and (iii) Till the enforcement of the award in accordance with Section 36 the Arbitration & Conciliation Act, 1996 as amended;"

2. The respondent is a Government of India Enterprise and it had issued a Notice Inviting Tender (NIT) on 02.02.2016 for construction of 2 Nos. Two Lane ROBs (including the approaches & LHS) in lieu of Level Crossing No. 104 and 108 at Km. 555/4-5 at Sirohi Road Yard & Km. 565/0-1 at Banas Yard of Madar-Palanpur Section of Ajmer Division of North Western Railways. The said two Road Over Bridges are hereafter referred to as `ROB 104' and `ROB 108'.

3. The petitioner submitted its tender for the aforesaid works and was declared successful. The respondent issued a Letter of Acceptance (LOA) dated 26.05.2016. The agreed contract value was fixed at Rs.41,77,29,781.72/-. Subsequently, the agreement dated 04.07.2016 was executed between the parties. In terms of the NIT, the petitioner submitted a performance bank guarantee in the sum of Rs.2,08,86,500/- being 5% of the contract value. The petitioner states that in addition to the above, it also furnished a security deposit being 5% of the contract value.

4. The petitioner claims that it commenced the construction works and also provided bank guarantee (Bank Guarantee No. 1002816BG000177) in lieu of the security deposit.

5. The petitioner claims that it sought advance for mobilisation of its resources and a sum of Rs.2,29,75,138/- was released to the petitioner on its furnishing two bank guarantees in the sum of Rs.1,14,87,569/- each.

6. The petitioner claims that it being conscious of its contractual obligations has kept