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TMI Blog1993 (8) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... urprised why the Prothonotary has not encashed the Bank guarantee and paid at least the principal amount in spite of order delivered by Division Bench to which one of us (Pendse, J.) was a party on October 16, 1992 in group of Civil Applications filed for the identical relief. The decision of Division Bench points out that in pursuance of judgment delivered by Supreme Court reported in 1988 (38) E.L.T. 535 (SC) = 1988 (19) ECR 578 (Ujagar Prints and Others v. Union of India and Others) the Government of India is entitled to forthwith enforce the Bank guarantee. It would be appropriate to quote the operative part of the judgment of Supreme Court to be found in paragraphs 32 and 32A, which reads as under :- 32. In the result the appeals pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason whatsoever save and except order from Supreme Court. The order passed by Division Bench was not carried to Supreme Court and Registry encashed the Bank guarantee and made payment to Union of India. 3. The present Motion arises out of Writ Petition filed on the Original Side of this Court and where the Bank guarantee was furnished to the Prothonotary and Senior Master. Shri Desai, learned Counsel appearing on behalf of Department, submitted that the Prothonotary cannot decline to enforce the Bank guarantee and make payment as directed by Supreme Court. The submission is correct and deserves acceptance. Shri Desai also submitted that Government of India is entitled to payment of interest for the deferred payment by the processors by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the Motion. But Division Bench then observed that since the Government of India is approaching Supreme Court for direction, it would be fit and proper if order sought by them in respect of principal amount is also obtained from Supreme Court. Dr. Chandrachud submitted that in pursuance of direction of Division Bench, the Government of India has filed Special Leave Petition in Supreme Court. Dr. Chandrachud also invited our attention to order dated June 25, 1993 passed by this Bench on Notice of Motion No. 400 of 1992. This Motion was taken out by Government of India claiming only payment of interest on the fixed deposit receipt of Bank guarantees. The Motion was dismissed because the Union of India had earlier agreed before Division Be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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