MINERALS AND METALS TRADING CORPORATION OF INDIA LTD Vs. SURAJBALARAM SETHI
HIGH COURT OF CALCUTTA
MINERALS AND METALS TRADING CORPORATION OF INDIA LTD
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(1.) THIS appeal is directed against an order of injunction passed by A. N. Sen, J. restraining the appellant, the Minerals and Metals trading Corporation Ltd. , from enforcing and the respondent No. 2, the Bank of India Ltd. , from making any payment under two bank guarantees. The order was made on the respondent No. 1 giving an undertaking to keep the bank guarantees alive till the disposal of the suit.
(2.) BY an agreement in writing dated June 12, 1964, the appellant appointed the respondent No. 1, hereafter referred to as the Agent its Handling and Clearing Agent for non-ferrous metals to be received into the Port of calcutta up to June 30, 1965. The said agreement provided inter alia : clause VI Any loss suffered, extra expenses incurred by the Corporation on account of inadequate supervisor, inadequate supply of labour, scales or transport, inefficient attention to claims, documentation or any other work alleged thereto, will be recovered from the Handling Agent's Security Deposit or payable bills, if any. Clause VIII : The Handling Agent shall furnish to the Corporation a Security Deposit of Rs. 20,000/- either in cash or in bank guarantee executed in favour of the Corporation towards the efficient and timely discharge of the items of work mentioned in this contract. Clause IX : The Corporation shall have the right to forfeit the whole or part of the Security Deposit towards any loss or damage sustained by the corporation due to the negligence or failure on the part of the Handling agent in discharging the items of work enumerated in the contract.
(3.) THE Agreement was renewed from time to time in respect of imports up to the end of March, 1968 on the same terms and conditions except that the rates of payment were enhanced and the security deposit was raised to rs, 30,000| -.;
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