Gounds 6.7, 6.8, 6.9 ,6.10, 6.11, 6.12 .

6.7.That Respondent Nos. 2 and 3 by misusing their dominant position are trying to get unjustly enriched. The attempt to invoke the Bank Guarantee without quantifying the alleged loss if any, is against the terms of the Bank Guarantees and clearly displays mala fide intention on the part of the Respondent Nos. 1, 2 and 3. 

6.8.That, no actual loss has been caused to the Respondent Nos.1, 2 and 3 because of any action or inaction on part of the Petitioner and in absence of any quantified loss, the Bank Guarantees cannot be invoked.

6.9.That the balance of convenience has come into existence which entitles the Petitioner for an injunction restraining the Respondents from invoking and en-cashing the Bank Guarantees as inter alia the Petitioner has performed all its obligations under the contract. Despite this, if Respondent Nos. 2 and 3 invoke and en-cash the Bank Guarantees, such invocation shall be illegal and cause unwarranted and irretrievable loss and injury to the Petitioner. The Petitioner will not only suffer financial loss but will also lose its reputation and credibility in the market which cannot be compensated by any other means. 

6.10. The act of liquidation of the bank Guarantees is against the settled principal of laws of the land. The law of the land allows the Courts to provide the relief of injunction of restraining a party from en-cashing a bank guarantee which has been wrongfully invoked, where there is a fraud of egregious nature in the underlying contract, where special equities exist and/or where the invocation/ encashment would cause irretrievable hardship to the Petitioner. 

6.11.The prima facie case and the balance of convenience are in favour of the Petitioner and against the Respondents in as much as that in case Respondents are permitted to invoke and en-cash the Bank Guarantees, the same shall cause irretrievable injury to the Petitioner.

6.12.This Hon’ble court in its judgement in WP/2509/2020 has also upheld similar contention and stayed the encashment of Bank Guarantee. A copy of the judgment is annexed here with as ANNEXURE-16.