- (1.) THIS application has been made by Bridge and Building Construction Co., under section 41 of the Arbitration Act, 1940, inter alia for orders as follows: (a) An order of injunction be passed restraining the respondents and/ or their servants and/or agents from encashing the Bank Guarantee bearing No. 23/30 dated 25.5.1993 ; (b) Injunction restraining the respondent No. 1 from taking any step and/or any further step pursuant to the letter dated 5th January, 1994 addressed to the respondent No. 2 a copy whereof is already part of Annexure 'Q' ; (c) Injunction restraining the respondent No. I from trying to invoke the Bank Guarantee bearing No. 19/93 dated 28th April, 1993 for Rs. 5,40,000/
(2.) ORIGINALLY when the application under section 20 of the Arbitration Act, 1940 was moved, the Bank of Baroda and Oriental Bank of Commerce were also made as respondent Nos. 2 and 3. On 7.1.94 when the application was moved, the learned advocate on behalf of the petitioner inter alia submitted that tire said Bank of Baroda and Oriental Bank of Commerce were not parties to the arbitration agreement and as such he prayed that his client did not intend to prays the application as against the defendant Nos. 2 and 3 in the instant proceedings under the Arbitration Act. As prayed for on behalf of tire plaintiff in the said application under section 20, the petition as against the Bank of Beretta and Oriental Bank of Commerce made under section 20 of the Arbitration Act was dismissed. That was the order made in tire application under section 20 of the Arbitration Act. The petitioner thereafter moved the instant application under section 41 of the Arbitration Act, also on 7th January, 1994 and an order was made by this Court inter alia to the effect that if at all any payment has been made or is received by the defendant/respondent No. 1, Cemindia Co. Ltd. from the said banks or any of them pursuant to the bank guarantees as mentioned in the petition, then and in that event tire said respondent No. 1 will keep the said amount in a separate fixed Deposit Account with a Nationalised Bank without disbursing tire same or any portion of it in any manner whatsoever. The application under section 41 of the Arbitration Act appeared as New Motion on 11.1.94 and on that date it was, inter alia, submitted on behalf of Cemindia Co. Ltd. that they had already received payment for a sum of Rs. 13,46,000/- from Bank of Baroda and they had already kept the same in a Fixed deposit Account with the State Bank of India. It was also ordered on 11th January, 1994, that if at all any further payment is received by Cemindia Co. Ltd. pursuant to the other bank guarantee, the same will also be kept in a separate Fixed Deposit Account with the State Bank of India, Esplanade Branch, Calcutta and the same will be kept renewed until further orders of this Court.
(3.) SINCE thereafter affidavits have been filed and the application made under section 41 of the Arbitration Act has been heard after the filing of the affidavits.;