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1987 Supreme(All) 262

N.N.MITHAL, MEHROTRA
HIMACHAL STEEL REROLLERS AND FABRICATORS – Appellant
Versus
UNION OF INDIA – Respondent


Advocates Appeared:
LALJI SINHA, RAMANAND AGARWAL

MITHAL J.


( 1 ) THE F. A. F. O. is directed against an order passed by the 4th Additional District Judge, Allahabad dismissing on application for issue of ad interim injunction and restraining the Railway authorities from encashing the bank guarantee furnished by the appellant in connection with a contract entered into between the parties.

( 2 ) THE short questions that arise for determination, apart from other somewhat irrelevant and almost insignificant points urged are, (I) Whether the plaintiff had made out a prima facie case for issue of temporary injunction ? and, (ii) Whether the suit is bad for want of a notice under S. 80 of the Code of Civil Procedure ?

( 3 ) THE plaintiff had entered into a contract with the Railways for supply of angle iron as per specifications after re-rolling raw material to be supplied by the Railway. There is no material disagreement about the quantity of angle iron to be supplied after re-rolling against a given quantity of raw material after accounting for agreed loss of raw material in the re-rolling process. It is undisputed that against the bank guarantee of Rs. 10,00,000/- furnished by the plaintiff, 257. 770 metric tons of billets (raw materi

















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