- (1.) The controversy here is with regard to the temporary injunction sought by the petitioners - Messrs Bhasin Associates to restrain Messrs National Building Construction Corporation Limited (hereinafter referred to as 'the Corporation') from enforcing the bank guarantees furnished by them.
(2.) After obtaining a contract for the widening of National High Way No. 1 from the Government of Punjab, the Corporation, on June 12, 1987, entered into an agreement with the petitioners, whereby it sub-contracted three components of it, namely :- (a) Foundation and sub-structure of work of the bridge; (b) Press Tressed concrete super-structure; and (c) Approaches to bridges consisting of earth work and Black Topping etc.
(3.) It was in pursuance of this agreement that the petitioners executed two bank guarantees in the sum of Rs. 76,80,000/- each in favour of the Corporation, one being performance guarantee and the other in respect of mobilization advance. One of the terms of the contract between the Corporation and the State Government was that no part thereof would be sub-contracted except with the prior approval of the Government. In anticipation of such approval, the petitioners started work on June 15, 1987. The approval in respect of the foundation and sub-structure of bridges was in due course granted by the letter of January 11, 1988 and for Press-Tressed concrete super-structure on March 24, 1988. No approval was, however, sought or granted in respect of the third component, namely, approaches to bridges consisting of earth-work and Black Topping etc.;