- (1.) The appeal is directed against the judgment and order dated 20.08.2013 passed by the learned Single Judge dismissing the writ petition challenging invocation of unconditional bank guarantee by respondent No. 1, West Bengal Power Development Corporation. Respondent No. 1 in terms of the tender floated for the purpose of dismantling/demolition and disposal of decommissioned 4 120 MW units of Santaldih Thermal Power Station issued a Letter of Intent for awarding the aforesaid contract in favour of the appellant No. 1. In the said letter of Intent, the appellant No. 1 was advised to submit a bank guarantee of (sic). 5,000,00,00/- only (Rupees five crore only) for contract performance in favour of the respondent No. 1 Corporation as per the enclosed format and to issue acceptance letter within 26.04.2013. In response thereto, the appellant No. 1 by letter dated 25th April, 2013 accepted the said Letter of Intent and submitted a bank guarantee issued by Union Bank of India, Main Branch, Raipur in favour of the respondent No. 1 Corporation for the aforesaid sum.
(2.) Subsequently, the respondent No. 1 Corporation by a fax dated 13.08.2013 invoked the aforesaid bank guarantee. Such fact was communicated to the appellants by letter dated 16.08.2013. Challenging such invocation, the writ petition was filed before the learned Single Judge.
(3.) Learned Single Judge held that the action of the respondent No. 1 Corporation was in terms of the bank guarantee furnished by appellant No. 1 and therefore there was no necessity to invoke the extraordinary powers of this Court under Article 226 of the Constitution.;