Ravi Krishan Kapur, J. - (1.) The instant appeal arises from an order dated 17 May, 2019, passed in GA 518 of 2019, CS 39 of 2019 by which the Learned Trial Judge restrained the appellant bank from giving any effect to or invoking the two bank guarantees both dated 21 October, 2016 as extended from time to time.
(2.) The facts: The suit is filed seeking a declaration that the aforesaid bank guarantees furnished at the instance of the plaintiffs are not enforceable and could not be enforced by the beneficiary (i.e the appellant bank) to claim any payment. There is also a prayer for an injunction and for recovery of money. In short, this is another instance of a party seeking an injunction against a beneficiary from enforcing its rights under a bank guarantee.
(3.) The case of the plaintiff is that, Gujarat NRE Coke Ltd. "GNRE", was the owner of certain wind-mills located at Gujarat which were encumbered in favour of a consortium of lenders of whom the appellant bank was the lead banker. In 2015, the plaintiffs entered into slump sale agreements with GNRE to acquire the wind-mills. However, the consortium of lenders led by the appellant bank did not approve the sale of the wind-mills to the plaintiffs. Ultimately, by an e-mail dated 12 August, 2016, SBI Capital Markets Limited informed the public of the decision of the Assets Sale Committee inviting fresh bids for the wind-mills. The plaintiffs participated in such bid and submitted their respective offers of Rs.154 crores and Rs.26 crores for the wind-mills situated at Jamnagar and Kutch respectively belonging to GNRE.;