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Bharat Explosives Ltd. Vs. Coal India Ltd. and ors. - Court Judgment

SooperKanoon Citation
CourtKolkata High Court
Decided On
Judge
AppellantBharat Explosives Ltd.
RespondentCoal India Ltd. and ors.
Excerpt:
.....and the matter also reached the hon’ble appeal court with regard to the invocation of the bank guarantee. it is not in dispute that the bank guarantee has been kept renewed and the said bank guarantee is still in force. the bank guarantee appears to have been furnished subject to the following two conditions. i) “the bank guarantee will be kept renewed on the same terms and conditions and should the plaintiff’s claim fail ultimately, the beneficiary would be entitled to receive the proceeds in respect of the bank guarantee. the plaintiff’s renewal of the bank guarantee should be accompanied with a copy of this order and instructions to the relevant bank to such effect. ii) in the event the plaintiff fails in the suit, the plaintiff will remain liable to pay interest at the.....
Judgment:

ORDER

SHEET CS No.318 of 2006 GA No.1972 of 2014 IN THE HIGH COURT AT CALCUTTA Ordinary Original Civil Jurisdiction ORIGINAL SIDE BHARAT EXPLOSIVES LTD.Versus COAL INDIA LTD.& ORS.BEFORE: The Hon'ble JUSTICE SOUMEN SEN Date : 8th July, 2014.

Appearance: Mr.Joy Saha, Adv.Mr.Kalimuddin Mondal, Adv.Mr.Nikhil Roy, Adv.Mr.Partha Basu, Adv.The Court: This is an application for extension of time to lodge the writ of summons.

It appears that the suit was instituted on 19th December, 2006 and thereafter several proceedings have been initiated by the petitioner against the defendants and the matter also reached the Hon’ble Appeal Court with regard to the invocation of the bank guarantee.

It is not in dispute that the bank guarantee has been kept renewed and the said bank guarantee is still in force.

The bank guarantee appears to have been furnished subject to the following two conditions.

i) “The bank guarantee will be kept renewed on the same terms and conditions and should the plaintiff’s claim fail ultimately, the beneficiary would be entitled to receive the proceeds in respect of the bank guarantee.

The plaintiff’s renewal of the bank guarantee should be accompanied with a copy of this order and instructions to the relevant bank to such effect.

ii) In the event the plaintiff fails in the suit, the plaintiff will remain liable to pay interest at the usual bank rate from the date of the entire letter of invocation till the date of payment by way of the plaintiff’s undertaking in damages for having obtained the order of injunction.” In view of the explanations offered in the petition and the said facts being not disputed, the plaintiff is permitted to lodge the writ of summons within a week from date.

Mr.Kalimuddin Mondal, learned Counsel appearing on behalf of the Coal India Ltd., being the principal defendant, submits on instruction that Mr.Partha Basu has been appointed on behalf of the defendant no.1.

In view thereof, service of the writ of summons in so far as the defendant no.1 is concerned is waived.

A copy of the plaint shall be served upon Mr.Partha Basu in couRs.of this week.

In so far as the other defendants are concerned, the Department upon lodging of the writ of summons and compliance of all formalities shall forthwith effect service of the writ of summons upon the defendant nos.2 and 3.

The suit is adjourned for six weeks and on the returnable date, the Deputy Sheriff shall file a report with regard to the lodging and service of the writ of summons upon the non-appearing defendants.

Defendant no.1 shall file a written statement within a period of four weeks from the date of service of the copy of the plaint.

This application is, thus, disposed of.

All parties concerned are to act on the basis of the server copy.

(SOUMEN SEN, J.) sp/


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