- (1.) Shri Suddhasatva Banerjee, learned Counsel appears for the petitioner in this application under Section 9 of the Arbitration and Conciliation Act, 1996 (for short, 1996 Act) numbered as T No.46 of 2016. Prayers are made in this application for restraining the respondent no.1 from invoking the bank guarantee of the petitioner lying with the respondent no.3 in terms of the contract entered between the petitioner and the respondent no.1 also called as the Power Purchase Agreement (for short, PPA).
(2.) Taking this Court to several provisions of the PPA, Shri Banerjee argues that under Clause 12.3 of the PPA and its Sub- clauses, an elaborate mechanism is laid down before the bank guarantee can be invoked by the respondent no.1/buyer against the petitioner/seller, such guarantee being in the nature of a Contract Performance Guarantee.
(3.) Taking this Court further to the notice of invocation of the bank guarantee, Shri Banerjee argues that no violation of Clause 12.3 of the PPA is made out in the said notice and, there is reference only to a back-to-back agreement between the respondent no.1 and the respondent no.2, being the West Bengal State Electricity Development Corporation Limited for which the petitioner/seller is not a party.;