1. These two intra-court appeals are directed against the order and decreetal order dated 21 September 2012 in O.A.Nos.238 and 239 of 2012 in C.S.No.207 of 2012, whereby and where under, the learned Single Judge was pleased to dismiss the interlocutory applications filed by the appellant for the purpose of restraining the respondent from terminating the Purchase Order dated 28 June 2010 and invoking the Performance Bank Guarantee.

Factual Background:

The case of the appellant:

2. The appellant is engaged in the business of providing and implementing networking solutions and services. The appellant has successfully completed various Government projects. The appellant has forged strong alliances with leading international companies and commands commendable respect in the industry. The Government of India under the administrative control of the Department of Information and Technology had intended to provide connectivity to Common Services Centres under the National e-governance project. The Government decided to implement the project under WiMAX technology and named it as "Rural WiMAX Project -II". The Government of India had entrusted the implementation of Rural WiMAX Project -II to the respondent/Bharat Sanchar Nigam Limited under the supervision of Department of Information and Technology.

3. The respondent issued a notification dated 5 June 2009 calling for tenders for Supply, Installation, Commissioning and Maintenance Support of Wave - 2 certified WiMAX equipment in BSNL, in various circles across the Country on Turnkey basis. The total estimated cost of the tender was Rs.1167 Crores. Since it was a prestigious project, the appellant submitted its commercial tender. The bid submitted by the appellant was accepted resulting in issuance of Advance Purchase Order dated 16 December 2009 for a sum of Rs.434,34,21,603/-. The appellant was required to furnish security for an amount equal to 5% of the value of purchase order within fourteen days from the date of issuance of Advance Purchase Order by the respondent. The appellant furnished Performance Bank Guarantee for a sum of Rs.21,23,01,730/-. Though the appellant submitted the Bank Guarantee immediately, the respondent was very reluctant in issuing the Purchase Order. Finally, the respondent placed Purchase Order on 28 June 2010 for supply, installation, commissioning and maintenance support of WiMAX equipment in BSNL network on Turnkey basis for Project -II. The value of the Purchase Order Project - II was unilaterally reduced to Rs.378,28,07,007/-. The respondent after negotiation agreed to reduce the value of Bank Guarantee and a revised Bank Guarantee for a sum of Rs.19,26,63,217/-was submitted.

4. The respondent had placed Purchase Order on 28 June 2010 after a lapse of six months from the date of Advance Purchase Order and submission of Performance Bank Guarantee. The delay between the Advance Purchase Order and the Purchase Order was not because of any act or omission on the part of the appellant. Based on the tender awarded and the Advance Purchase Order issued by the respondent, the appellant invested huge sums of money for identification of sub-contractors, issued sub-contracts, started production of equipments and invested in increasing the man-power, etc., The appellant has also placed huge orders with its suppliers for supply of specific equipments as per the requirements of the Purchase Order and with a view to comply with the same. Similarly, the appellant invested huge sums of money for purchasing and installing the required infrastructural facilities.

5. Clause 6 of the Purchase Order provides for the details of the equipment's to be supplied and the time limit for supply, installation and commissioning. As per clause 13.1.1 of the Purchase Order, the respondent should pay the appellant 40% of the equipment cost (including CPE's) on the supply of all the equipments/materials at site against the Purchase Order in satisfactory condition. Such