- (1.) THE petitioner Scrap Mould entered into a contract with the respondent Metal Trade Corporation Limited on or about 10th June, 1987 for supply of 28,000 MT plus minus shredded scrap at the sellers option. The scrap was intended to be purchased by the respondent as the canalising agent for distribution to various ultimate consumers in the Country.
(2.) ONE of the terms and conditions of the said contract between the parties required the petitioner to furnish a performance bond from an approved bank for US Dollars 1,82,280. 00 being 8% of the value of the contract.
(3.) IN compliance with the aforesaid requirement the petitioner furnished a bank guarantee issued by Standard Chartered Bank, 4, Netaji Subhas Road, Calcutta for US Dollars 1,82,280. 00,;