1. This Writ Petition is filed aggrieved by the action of the respondents in invoking the Bank Guarantees furnished by the 1st petitioner along with its tenders in response to the tender notification dated 5-3-2002.

2. The 1st petitioner claims to be a registered special class Contractor with the department of the Roads and Buildings. The 1st respondent-Superintending Engineer (Rand B), APHM and ECRP, issued a tender notification inviting tenders for widening and strengthening of Mydukur to Tadichearla Road from KM 50/0 to 57/0 and KM 57/0 to 65/0 under Package Nos. 28-C and 28-D respectively. The 1st petitioner submitted its tenders, furnishing the required security as specified in Clause 16.1 of the Instructions to Bidders (ITB), by way of two Demand Drafts i.e., BG.No.2002/0015 for Rs. 2,92,000/- and BG. No. 2002/0016 for Rs. 3,34,000/- issued by the Andhra Bank, Nandyal, respectively, in respect of the above said two packages. It is not in dispute that as per the tender schedule, bids were opened on 9-4-2002 and finalized.

3. Thereafter, the 1st petitioner by letter dated 1-5-2002 informed the 1st respondent-Superintending Engineer, that the bids submitted by it on 9-4-2002 were