Law: Civil Procedure Code (V of 1908)

Section: 1 , 2

  Civil Procedure Code (V of 19(18)... ---O.XXXIX, Rr. 1 & 2---Ad-interim injunction, grant of ---Encashing of Bank guarantee and performance bond---Court, in case of letter of credit and an un conditional Bank guarantee, would generally be reluctant to grant an ad interim injunction restraining a Bank from honouring its contractual obligation---In exceptional cases, however, where refusal to grant an ad-interim injunction, would perpetuate fraud or injustice, which should be apparent from the material on record, Court could grant an ad-interim injunction---Where Bank had given undcraking to pay the amount on demand by the respondent Authority, without questioning it and without making a reference to appellant, grant of ad-interim injunction would not be just and proper---Just and proper order however, would be to allow respondent Authority to encash Bank guarantee to the extent of specified amount---Respondent Authority, however, was restrained from encashing performance bond. Province of West Pakistan v. Mistri Patel &. Co. and another PLD 1969 SC 80 rel. Alavi Sons Ltd. v. The Government of East Pakistan and others PLD 1968 Kar. 222; United Commercial Bank v. Bank of India and others 1982 PSC 601; Sirafi Trading Establishment v Trading Corporation of Pakistan Ltd. 1984 CLC 381; Bolivinter Oil S.A. v. Chase Manhattan Bank and others 1994 Lloyd's Law Rep. 251; Messrs Pakistan Associated Construction Ltd. v. Asif H. Kazi and another 1986 SCMR 820; Mackenzi v. Royal Bank of Canada 1934 AC 468; Bank of Montreal v. Stuart and another 1911 AC 120; Messrs Kohinoor Trading (Pvt.) Ltd. v. Mangrani Trading Co. and 2 others 1987 CLC 1533; Trendtex Trading Corporation v. Central Bank of Nigeria 1977 OB 529 Wstminster Bank Ltd. 1978 OB 146; (19 bottle Mercantile Ltd. v. National 977 Llyod's Rep. 581 CA); R.D. Har77)2 A!I ER 862; Leading Cases in the Law of Banking by Chorley and Smart Fou artwil of" Injunctions, Second Edn. Law of   Banking, Ninth Edn. p. 577; Nelson's L pp. 673,, 821 and Row's Law of Injunctions, Sixth Edn., pp. 316, 317, 318, 337, 338, 339, 339, 888 rel. N.A. Farooqi for Appellant. Mahmud Alam and Syed Iqbal Ahmad…