IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY SECOND DAY OF JULY TWO THOUSAND AND NINE PRESENT THE HON'BLE SRI JUSTICE GODA RAGHURAM WRIT PETITION NO : 13865 of 2009 Between: M/s. Sigma Constructions Rep. by its Managing Partner Sri N.N.B.V. Venkateswara Rao S/o. Visweswara Rao, 45 yrs, Plot No. 7, Viswanadha Residency, Srinivasa Nagar West S.R. Nagar, Hyderabad. ..... PETITIONER AND 1 Government of Madhya Pradesh Rep. by its Chief Executive Officer Madhya Pradesh Rural Road Development Authority Block No.2, 5th Floor, Paryawas Bhavan Bhopal, Madhya Pradesh 2 General Manager, M.P. Rural Road Development Authority , Project Implementation Unit 2 Vikas Nagar, Kolapth, Bethil, Madhya Pradesh 3 Branch Manager Bank of Maharashtra, Sulthan Bazar Branch Hyderabad, A.P. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue a writ or order more particuarly a writ of Mandamus that the action of restraining respondents 1 and 2 in taking steps to invoke the Bank guarantees viz. 1) BOM 019/SC/15/2004/05 dt. 21-2-2005 for a sum of Rs. 20,88,100/- valid upto 15-4-2011; 2) No. 8123/07-08 dt. 11-6-2007 for a sumof Rs. 8,00,000/- valid upto 10-12-2008 3) No. 8124/07-08 dt. 11-6-2007 for a sum of Rs. 12,00,000/- drawn infavour fo the 2nd respondent through the 3rd respondent Bank situate at Hyderabad where the petitioner entered into the contract for creation of Bank guarantees for being utilized for doing the work under package No.MP 0351 vide Agreement No. 20/2005 PIUs/BTL dt. 25-2-005 entrusted from enforcing and responding to the action of the invocation of bank guarantees dt. 20-6-2009 as illegal, arbitrary and unconstitutional and unenforceable and the same shall be restrained from being enforced and the same be preserved contemplated U/s 9(ii) (d) and (e) of the Arbitration and Conciliation Act 1996 till the conclusion of the arbitration proceedings as contemplated under clauses 24 and 25 ofthe General Clauses of Contract governing both parties and pass Counsel for the Petitioner:MR.N.RAVI PRASAD Counsel for the Respondent No.: . The Court made the following : ORAL ORDER: Invocation by the respondents 1 and 2 of three bank guarantees namely a) dt. 21.2.2005 for Rs. 20,88,100/-, b) dt. 11.6.2007 for Rs.8,00,000/- and c) dt. 11.6.2007 for Rs. 12,00,000/- drawn in favour of the 2nd respondent and furnished by the petitioner towards guarantee for the performance of the works entrusted to the petitioner by the M.P. Rural Road Development Authority, is challenged in this writ petition. The petitioner was awarded work of construction of certain stretches of rural roads between Kanti and Dunawa, Valani and Bisnoor, Maandava Chindwara and Wadali of Bethur District, Madhya Pradesh. Towards the guarantee for due performance of the said works, the petitioner furnished the aforementioned three bank guarantees, which are unconditional and irrevocable. These bank guarantees are sought to be invoked by the respondents 1 and 2 and to that effect the 2nd respondent has addressed a communication dt. 26.6.2009 to the 3rd respondent bank invoking the bank guarantees on the ground that the petitioner failed to achieve the progress and complete the work within the stipulated time and the 3rd respondent bank should send the amounts covered by the bank guarantees by demand drafts. Substantially a similar writ petition No. 462 of 2009 between the same parties and also assailing the invocation of bank guarantees has been considered by this Court and by the Judgment dt. 21.7.2009, the writ petition was dismissed, for the reasons recorded therein. For the same reasons as recorded in W.P.No. 462 of 2009, this writ petition challenging invocation of the bank guarantees specified herein, is also dismissed. No order as to costs. ___________________ GODA RAGHURAM,J 22.7.2009. KRB. THE HON’BLE SRI JUSTICE GODA RAGHURAM WRIT PETITION No. 13865 of 2009. Dated: 22.7.2009.