- (1.) This is an application filed by the writ petitioner, inter alia, challenging the notice of invocation of bank guarantee dated November 19, 1999, issued by respondent No. 1 and the letter dated November 25/30,1999, issued by the United Bank of India, respondent No. 2 herein, inter alia, on the ground that the petitioner is a sick industrial unit within the meaning of the West Bengal Relief Undertakings (Special Provisions) Act, 1972 (hereinafter referred to as "the said Act of 1972"), as also under Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter referred to as "SICA of 1985"), wherein the Board for Industrial and Financial Reconstruction (hereinafter referred to as "the BIFR") has propounded a scheme for rehabilitation, and thereby the invocation of the bank guarantee dated July 11, 1999, issued by the United Bank of India has to be declared as arbitrary, motivated and/or illegal.
(2.) The facts of the case briefly are as follows : A contract was entered into between the petitioner and respondent No. 1 being the ONGC on September 7, 1996, for complete rehabilitation work of "EE platform" for a lumpsum price of Rs. 6.99 crores inclusive of taxes and duties as applicable.
(3.) In terms of the said contract, the contractor was obliged to furnish "performance guarantee" and the "security deposit".;