JUDGMENT :

Satyen Vaidya, J.

By way of instant petition, filed under Section 9 of the Arbitration and Conciliation Act, 1996 (for short, the Act), the petitioner has sought a stay against communication dated 16.3.2023 (AnnexureP-7), whereby, respondent has invoked bank guarantees, furnished by the petitioner.

2. Petitioner was awarded certain civil works vide award letter dated 28.8.2012, issued by the respondent. The total cost of the works was Rs. 38,76,98,396.24/-. Formal agreement between the parties was executed. The time allotted to the petitioner for completion of the works was twenty four months.

3. In compliance to the conditions of the agreement, petitioner had furnished two separate bank guarantees in favour of the respondent in the sums of Rs. 1,25,11,000/- and Rs. 68,74,000/- respectively. The first bank guarantee was renewed from time to time and had its validity till 7.3.2023 and the second bank guarantee was valid till 30.3.2023. The claim period in both the bank guarantees was twelve months after the expiry of its validity date.

4. Vide communication dated 16.3.2023 (Annexure P-7) (colly) respondent invoked both the bank guarantees and submitted a demand on the Punjab N