N.P.SINGH,J. - (1.) This appeal has been filed on behalf of Unit Construction Co. Pvt. Ltd. (hereinafter referred to as the appellant) for setting aside an order dated 14th February, 1992 passed by a learned Judge of this Court refusing to grant temporary injunction restraining the Calcutta Metropolitan Development Authority (hereinafter referred to as the respondent) from enforcing the bank guarantee in question. It is an admitted position that the appellant entered into a contract with the respondent for construction of high rise building, 4th floor to 12th floor at Civil Centre at Manicktola in Calcutta. One of the terms of the contract was that mobilisation advance equivalent to 10 per cent of the gross value of the contract will be paid to the appellant against suitable bank guarantee and the recovery will be made from each running account bill at the rate of 10 per cent of the gross value of the bill or any part thereof. The entire outstanding amount was to be recovered from the pre -final bill.
(2.) PURSUANT to the said term of the contract the appellant furnished a bank guarantee being No. CS/52/01 dated 30th June, 1990 for Rs. 31,50,000/ - through the Bank of India, Chowringhee Square Branch.
(3.) ACCORDING to the appellant, the respondent failed and neglected to pay the running bills submitted to them in time although the appellant had diligently discharged its obligation in accordance with the terms of the contract, because of which the work could not be completed within time. The appellant received a letter dated 16th January, 1992 enclosing a copy of a letter dated 14th January. 1992 purporting to invoke the bank guarantee a fore said. Thereafter the appellant has filed a suit making a prayer for a decree that the letter of demand dated 14th January, 1992 written by the respondent to the bank for enforcement of the bank guarantee in question was void. A prayer for perpetual injunction restraining the respondent, their agents and assigns from demanding or receiving payment under the bank guarantee was also made apart from other incidental reliefs.;