- (1.) THIS is an application by the Express Cables Private Ltd. under section 41 of the Arbitration Act for an order of injunction restraining the respondent Punjab State electricity Board from making any claim and/or demand from the United Bank of India, Patna or the Head Office of the United Bank of India at Calcutta, in connection with the two Bank guarantees being annexure 'b' and 'c' to the petition until the disposal of the pending arbitration proceedings and for other orders.
(2.) THE facts alleged in the petition in short are that in accordance with the Tender Specification No. DTQ-26 and general instruction received by the petitioner at its registered office at Calcutta, the petitioner by its letter dated 30. 5. 77 offered to supply certain electrical goods to the respondent on terms and conditions contained therein. The respondent in its turn made a counter offer by its letter dated 13. 9. 77 on some different terms and the said counter offer was communicated to the petitioner at its Calcutta office within jurisdiction. A purchase order No. 4663/dtp47 dated 7. 10. 77 was thereafter placed with the petitioner. This counter offer was accepted by the petitioner on 17. 10. 77 at its registered office at Calcutta, The aforesaid two Bank guarantees, being annexure 'b' and 'c' to the petition were given by the petitioner in connection with this contract. Disputes and differences having arisen between the parties in connection with this contract, the same were referred to one Shri J. M. Gupta, for arbitration and the same is pending. It is alleged that the respondent is wrongfully trying to enforce the said two Bank guarantees without waiting for the result of the arbitration. Hence the application.
(3.) THE respondent filed its affidavit-in-opposition on 9. 6. 79 alleging inter alia that this court has no jurisdiction. to entertain this application.;