Ajit K.Sengupta, J. - (1.) This appeal by the defendant is directed against the interim orders dated March 2, 1993, and March 11, 1993, passed by a learned single judge of this court on an interlocutory application filed by the first respondent.
(2.) Shortly stated the facts are that the plaintiff, "the first respondent, filed the instant suit on March 2, 1993, inter alia, praying for a declaration that the first defendant, the appellant before us, and the second defendant, United Bank of India, are not entitled to enforce the bank guarantee dated December 24, 1991, or payment of any portion of Rs. 30,50,000 being the amount covered thereby and the bank is not entitled to pay the same to the appellant. In the said suit, State Bank of India was also made a party. However, in the present appeal, the State Bank of India has not been made a party as no relief has been asked for against the State Bank of India.
(3.) In the interlocutory application filed by the plaintiff-first respondent, it has been, inter alia, alleged as follows : (a) The conduct of the appellant is mala fide from the very beginning who induced the plaintiff-first respondent to extend the validity period of the bank guarantee issued by the State Bank of India on the express representation that the validity period of the bank guarantee, if extended, no payment would be realised in respect thereof. (b) Relying upon the aforesaid representation and believing the same to be true the plaintiff-first respondent extended the validity period of the bank guarantee issued by the State Bank of India, but the appellant wrongfully, illegally and fraudulently realised a sum of Rs. 20,37,500 by invoking the bank guarantee. (c) The plaintiff came to learn that another fraudulent demand had been made for invoking the bank guarantee furnished by the United Bank of India, the second respondent herein. (d) At all material times the United Bank of India was fully aware that the said invocation of bank guarantee is wrongful, illegal and fraudulent and it was the duty and obligation of the United Bank of India as bankers, as also otherwise, not to make payment under the bank guarantee. Further in breach of its duties and obligation the bank has been wrongfully and illegally threatening to make payment under the said bank guarantee.;