Allowed

The National Small Industries Corporation Ltd. v. Punjab National Bank

Telangana HC10 Feb 2022WP/5078/2022

Case brief

AI extract

What is this about?

The Hon'ble Single Judge of the Telangana High Court disposed of a writ petition filed by NSIC against Punjab National Bank. The Court directed the Bank to release amounts due under several Bank Guarantees without costs, noting the respondent's readiness to pay.

What did the court decide?

The respondent Punjab National Bank was directed to release amounts due under Bank Guarantees Nos. 0687/LG-002112/002212/003112/003212/005712/003714 in favour of the petitioner without costs.

The National Small Industries Corporation… — Contract and Commercial Disputes | Telangana HC (2022)

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HIGH COURT FOR THE STATE OF TELANGANA AT HYOERABAD

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(Special Original J urisdiction)

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THURSDAY, THE TENTH DAY^{OF FEBRUARY} TWO THOUSAND AND^{TWENTY TWO}

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PRESENT

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THE HONOURABLE DT.^{JUSTICE SHAMEEM AKTHER}

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IT PETITIO 5078 0F

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Between:

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The National Small lndustries^{CorporatronLtd., (A Government oJ lndiaCompany)} h;;ino ld r;;istered office at^{NSIC Bhavan. okla lndustrial Estate, NewDelhiandalso} oL-n"i otfiiE^-ihonq oine,^{places at 6-3'144.14411,3'o Floor, JahanaraKareem} Complex, Balanagar,^{Hyderabad rep.by its authorised signatory}

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...pETlTlONER

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AND

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1 Puniab National Bank, reo.bv^{lts Chlef l,4anager, Sanath Nagar Branch, Deccan} Chahbers. Near^{Ry4huBazdr, Erragadda,Hyderabad-5000'18}

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z lii nlte"rii,aiiiji,^{lnierim Resoiution-professi6natM/sS_anjay-KumarKothari and} - Co., ZOS, Doshi'Chambers, Basheerbagh Hyderabad-500029

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M7a'M;;i tniraitructure^{P,4 Ltd., Rep.btits lvlanagingDirector S-25,Srila Park} Pride, Hydernagar. Kukatpallv.^{Hvderabad-500072}

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4 S;;V.Ra'vi kir;,i, .ro sri^{Prabh,aklra Rao, N,4anagingDirectorofM/s Mark} inirjstiucture^{pvtt-t0.,r.loS-25, Srila Park Prlde,Hydernagar, Kukatpally,} Hvderabad-500072

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5 i\li;l/.Si;"";hi,^{*1,, sri V.Ravi Kiran Directorof M/sMark lnfrastructurePvt Ltd} '

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iti-6-Zs, Srita park Pride, Hydernagar, Kukalpallv, Hyderabad-s0O07'r.*or"r"

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PetitionUnderArticle226oftheConstitutionoflndiaprayingthatinthe circumstances stated^{in the affidavil filed therewith, the High court maybe pleased} to issue appropriate^{writ, orderor directionparticularlya Writ of Mandamus} declaring the action of^{Respondentbank in not releasingthe amounts due and} paVaUfe" unOel. Bank Guarantee^{Nos 0687lLG-002112dl'|5'02'2012for} hilis,oo oool- o687tLG-002212^{dt.2s o2.2o12 for Rs.21,50,000/-,068711G-} 003112dt.24.03.20121orRs.23'40,0001,068711G-0032'l2dt'04'04'20121or Rs.30,10,0001,068711G-005712dt.11.08.2012forRs.50,00,000/-and0687lLG003714dt.06.08.2014torRs.50'00,000^asillegal,arbitrary,violativeoftermsof BanXGuarantee,violativeofprovisonsoflndianContractAct,Article-19'21of Constitution of lndia^{and issuea consequentialdirection to respondent No 1 to} release the amounts covered^{by BankGuaranteesreferred to above along with} interestat 18%p.a.,trcm10.O1^{.2022 till the date of actual payment}

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IAN 1 0F 202

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PetitionunderSectionl5lCPCprayingthatinthecircumstancesstatedin the affidavit filed^{in support of the petition, the High Court may be pleased to direct} therespondentNo.lbanktoreleaSetheamountsunderBankGuarantee Nos.0687lLG-002112 dt.15.02.2012^{forRs25,00,000/-,068711G-002212} d1.2g.02.2012forRs.21,50,000/-,0687lLG-003112d|24032012forRs23'40'000/0687ILG-0O3212cit.O|.O4.2Q12forRs.30'10'000/-,068711G-005712dt1108'2012 forRs.50,00,000/-and0687lLG-003714dt.06.082014'forRs50,00,000/',pending disposa I of WP.No.^/2022

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Counsel for the Petitioner^{: SRIJ.PRABHAKAR, SENIOR COUNSELFOR}

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MS D.VENKATA^PADMAJA

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Counsel for the^{RespondentNo.1 : Ms KALPANA EKBOTE}

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S.C. FOR PNB

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Counsel for the^{RespondentNos.2to 5 :} -

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The Court made^the following:^ORDER

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THE HON'BLE^{Dr' IUSTICE SHAMEEM AKTHER}

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WRIT PETITION^{No'5078of 2022}

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ORDER:

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The^{petitioner herein seeks a writ of lu'landamusdeclaring} the action of^{the respondentNo 1-Bank in not releasingthe} amounts due^{and payable under Bank GuaranteeNos'0687ILG-} OO2ll2, dated^{15.02.2012for Rs 25 lakhs' O6BTILG-O022L2'} dated 29.02.2012^{for Rs.21.5lakhs,0687ILG-003112'dated} 24.03.2012 for^{Rs.23.4 lakhs, and 06B7ILG-003212'dated} 04.04,2012^{forRs.30.1lakhs,0687ILG-005712'dated} 11.08.2012^{forRs'50 lakhs and 0687ILG-003714'dated} 06.08.2014 for^{Rs.50lakhs, as illegal' arbiirary and fora} consequential direction^{to respondent No t-Bank to release the} amounts covered^{by the Bank Guaranteesreferred above in} favour of the^{petitioner, along with interest@ 18o/o per dflnum} from 10.01.2022.

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2, Heard Sri .l.Prabhakar,^{learnedsenior counsel'appearing} for Ms.D.Venkata^{Padmaja,learned counselfor the petitioner'} Ms.Kalpana^{Ekbote, learned StandingCounselfor Respondent} No.1-Bank and Perused^{the record'}

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In the^{course of submissions,the learnedStanding} Counsel for^{the respondent No'1-Banksubmitted that the} respondent No.1-Bank^{is ready to releasethe amountsdue and} payable under the aforementioned^{BankGuarantees in favour of} the^petitioner and^{sought some time for the same'}

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The prayer of the petitioner in this writ petition is also to release the amounts due and payable under the aforemeniioned Bank Guarantees in favour of the petitioner.

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in view of the above submission made by the learned Standing Counsel for respondent No.1-Bank, the respondent No.l/Punjab National Bank shall release the amounts due and payable under aforementioned Bank Guarantees in favour of the petitioner, as prayed for.

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The writ petition is ordered accordingly. No costs.

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Miscellaneous petitions, if any, pending in this writ petition,

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shall stand closed.

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,TRUE COPY//

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SD/-T.TIRUMALA DEVI ASSISTANT REGISTRAR L.p

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SECTION OFFICER

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To,

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The Chief l,4anager, Punjab National^{Bank,Sanath Nagar Branch, Deccan} Chambers. Near Rythu^{Bazar, Erragadda,Hyderabad-50001I} 2. One CC to l,4s D.Venkata^{PadmajaAdvocate} IOPUCI One CC to [,4s Kalpana^{Ekbote. SC for PNB} [OPUC] 4. Two CD Copies 5. One Spare Copy Kj BS \Y

HIGH COURT

DATED:10/0212022

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ORDER

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WP.No.5078 of 2022

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ORDERING THE WRIT PETITION WITHOUT COSTS.

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G rt'
Xre'

The National Small Industries Corporation Ltd. v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

The National Small Industries Corporation Ltd. v. Punjab National Bank

Case brief

What is this about?

What did the court decide?

What the court decided

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