(1.)The petitioner in this application, inter alia, has prayed for issuance of a writ of or in the nature of mandamus directing the respondents to forthwith revoke and/or rescind and/or cancel the letters dated 7/09/1992 and 18/09/1992 which are contained in Annexures R, R/1, S, S/1 to the writ application as also desisting from invoking bank guarantee No. AH7/ BG/3/87, dated 7/11/1987 for a sum of Rs. 10 lacs 57 thousand 1 hundred 60 and bank guarantee No. 5/88, dated 5/10/1988 for a sum of Rs. 31 lacs 71 thousand 4 hundred 80 both issued by the Bank of Maharashtra.
(2.)The fact of the matter lies in a very narrow compass.
(3.)The petitioner No. 1 owns a shipyard at Shibpur for carrying on business as Marine and Mechanical Engineers and structural fabricators. The respondent No. 5 intended to get a fishing trawler built by the petitioners. According to the petitioners the Central Government had evolved a scheme to promote shipping industries and grant loan to such persons intending to get a ship built wherefor even subsidy is paid. It is stated that a contract for building the aforesaid fishing trawler, the cost where of was one crore five lacs was entertained into between the petitioners and respondent No. 5 on or about 23-3-1987. The Government's subsidy was to be to the tune of 1/3rd of the said amount, namely, Rs. 31,40,128.00 and the buyers own contribution was only to the extent of Rs. 3,61,577.00. The respondent No. 2 Shipping Credit Investment Co. Ltd. granted a loan to the respondent No. 5 for a sum of Rs. 68,69,000.00. On or about 26/03/1987, a tripartite agreement in writing was executed by and between the petitioner No. 1, respondent No. 2 and respondent No. 5. On the same day an agreement was entered into by the petitioner No. 1 and the respondent No. 2 for grant of subsidy to the extent of Rs. 33,40,128.00.