2. The petition, having regard to controversy involved, is with the consent of learned counsel for the parties taken up for final disposal, at the initial stage.

M/s Vethestha Constructions and M/s Good Luck Constructions -- two construction companies, as a joint venture, responded to the Notice inviting tenders, issued by respondent No.3 on 12.09.2008, for upgradation of road from Achabal Soumbran to Chatpal. The joint venture/petitioner herein bagged the contract for upgradation of the aforementioned road at a cost of Rs.18,86,81,944.00 (Rupees eighteen crores, eighty six lacs, eighty one thousand, nine hundred and forty four only) and letter of acceptance No.CE/PMGSY/J&K/Sgr/667-83 dated 23rd January 2009 was duly delivered to the petitioner. The petitioner was required to furnish performance security in the form of Bank Guarantee/Fixed Deposit Receipt for an amount of Rs.47.17 Lacs, within a period of ten days. The petitioner duly furnished the Performance Bank Guarantee - BG No.04/2009 dated 29th May 2009 from J&K Bank Limited, whereafter respondent No.3 vide No.CE/PMGSY/J&K/S/1499-1503 dated 30th May 2009, asked petitioner to proceed with the work in accordance