Satya Brata Sinha, J. - (1.) The petitioner in this writ application has, inter alia, prayed for issuance of a writ of or in the nature of mandamus directing respondents Nos. 1 and 2 to restore the three bank guarantees upon payment-back by respondent No. 1 to respondent No. 2 of the sum received upon recovering the relevant debt entries in the account of the petitioner with defendant No. 2 forthwith.
(2.) The fact of the matter is not much in dispute. The petitioner obtained a purchase order from respondent No. 1, Steel Authority of India, on December 12, 1985, and for the purpose of execution of the said contract it received advances from the said respondent, upon furnishing three bank guarantees executed by respondent No. 2 in favour of respondent No. 1, the details whereof are as follows : JUDGEMENT_161_CC89_1997Html1.htm
(3.) Allegedly the petitioner was declared a sick industrial undertaking on or about February 9, 1988, purported to be in terms of the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (hereinafter called and referred to for the sake of brevity as "the said Act"). On January 29, 1991, the Steel Authority of India Ltd. filed a suit against the State Bank of India for recoveries of the amount under the three bank guarantees. On February 27, the said bank informed the petitioner that a writ of summons would be served upon the bank in Money Suit No. 22 of 1991 filed by respondent No. 1 for payment of the amount under the said bank guarantees. The bank intimated the petitioner that if respondent No. 1 presses its claim, the said bank guarantees would be paid and the proceeds thereof would be recovered by debiting the cash credit account of the petitioner. During pendency of the said suit the said bank paid voluntarily the entire proceeds of the three guarantees on March 9, 1992, without any order from the court. The petitioner filed two applications in the suit, one for being added as a party and another for restraining the bank from paying the said amount to respondent No. 1.;