JUDGMENT

Lim Chong Fong J:

Introduction

[1] This is an application for a declaration that the call on the performance bond is invalid and consequently an injunction to restrain the receipt of the monies thereunder in preservation of the status quo pending the resolution of disputes pursuant to a construction contract in arbitration proceedings.

[2] The Plaintiff is a private limited company and involved in the construction contracting business.

[3] The First Defendant is a local authority constituted under the Local Government Act 1976.

[4] The Second Defendant is a public limited company and involved in licensed banking services under the Financial Services Act 2013.

Salient Background Facts

[5] By a contract dated 8 August 2011 ("Contract"), the First Defendant appointed the Plaintiff to construct and complete the project described as 'Cadangan Membina Kompleks Ibu Pejabat Majlis Perbandaran Kuantan (MPK) Di Atas Lot 29, s 30, Jalan Tanah Putih, Kuantan, Pahang Darul Makmur' ("Project").

[6] The relevant terms of the Contract read as follows:

"13.0 Performance Bond/Performance Guarantee Sum

13.1(a) The Contractor shall, on the date of possession of Site, provide a Performance Bond or perfor