Kalyanmoy Ganguli, J. - (1.) In the instant application under Article 226 of the Constitution of India, the petitioners pray for a two-fold remedy of directing the respondents in effect, to allow a reasonable extension of the validity period of the letter of credit and extension of time for shipment and restraining the respondents from invoking the performance guarantee of from demanding any payment under the bank guarantee without disposing of the application for extension of time for shipment.
(2.) The petitioner No. 1 is a registered partnership firm of which the petitioner No. 2 is one of the partners but the petitioner No. 3 is a limited company having its registered office at 17, Dornars Street, London, WIP 3 DD, that is to say the petitioner No. 3 is a foreign company. The Petitioner No. 1 is the agent Of the Petitioner No. 3 in India. Pursuant to a tender, the offer of the petitioner No. 3 was accepted through the petitioner No. 1 by the respondent No. 1. A concluded contract containing various terms and conditions followed.
(3.) The respondent No. 2 obtained from the Petitioner a performance guarantee bond in the form of a bank guarantee being 10% of the total the respondent No. 2 opened a letter of credit through purchase value Canara Bank.;