S.B.Sinha, J. - (1.) The petitioner who undertook a contract job to manufacture and supply one complete secondary screening system for paper machine (Newsprint) with the respondent No.2 said to be a 'State' within the meaning of Article 12 of the Constitution of India has filed this writ application, inter alia, for the following reliefs :- "1. A writ of or in the nature of mandamus and/or appropriate directions do issue directing the Respondent No.1, its servants, agents and/or assigns or otherwise howsoever from acting in terms of or giving effect to or taking any steps in furtherance of the letter dated 3rd June, 1996 and to act in accordance with law; 2. Appropriate writs, orders and/or directions do issue for production of all relevant records and for protection of all rights of the petitioner and for granting the petitioners such relief as in the circumstances shall be just and proper"
(2.) The admitted facts are that an order was placed by the respondent No.2 upon the petitioner in respect of the aforementioned contract on 28th March, 1990, pursuant whereto a performance guarantee was furnished on 27th February, 1991 which was although valid for a period upto 30th September, 1992 was evidently extended upto 30th June, 1994.
(3.) By a letter dated lst June, 1994 a request was made by the respondent No.2 to respondent No.1 to extend the bank guarantee upto 30th December, 1994 in regard whereof a request was also made to the petitioner. By a letter dated 7th/14th June, 1994 the respondent No.2 invoked the bank guarantee in the event the same was not extended upto 30th December, 1994 with a request to the petitioner to extend the same within a period of six months. The said letter reads thus:- REGD. A/D Dated 07/14.06.94. "HNL/FIN/PO/313/23/R.2364 To Indian Bank, Jodhpur Park, Calcutta-700 068. Sir, Sub: Extension of Bank Guarantee No. G/2/91 for Rs. 419670/- A/C M/s. AIMS India (P) Ltd. The validity of the above bank guarantee will be expiring on 30.6.94. You are requested to extend the bank guarantee for another six months i.e. upto 30.12.94. If the party refuses to extend the bank guarantee, please treat this letter as our claim and encash the guarantee. The proceeds may be transferred to our account with Central Bank of India, Mevelloor Branch, Newsprint Nagar P.O. 686 616, Kottayam Dist., Kerala. Thanking you, Yours faithfully, for HINDUSTAN NEWSPRINT LIMITED Sr. Manager (Finance)". Admittedly the petitioner did not agree for extension of bank guarantee. The respondent No.2 again reminded the bank for payment of the amount whereafter the Senior Manager of the respondent No.1 in terms of its letter dated 21st December, 1995 in reply to the respondent No.2's letter dated 16/18.9.95 stated:- "It is curious to note that on your own motion and without any reference to us your company intimated the said Guarantee was extended till 30.6.95 and also requested us to extend the same till 30.9.95. The said extension was never agreed upon by us and no extension was intimated to you in writing in compliance with paragraph 5 of the said Guarantee.";