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3. It is further submitted by the plaintiff that defendant No. 3 also entered into a sub-contract dated 9th March, 2005 for a value of Saudi Rials 308,000,000/-(308 million) to execute a branch of Sewerage Network, with Bhandari Engineers and Builders Saudi Arabia (BEBSA). BEBSA owned and possessed a valid commercial license issued by Ministry of Commerce, Saudi Arabia. Sh. Ajit Singh Bhandari holds 65% capital share in BEBSA. He was the managing director of BEBSA. Sub-contract dated 9th March, 2005 executed between defendant No. 3 company and BEBSA was independent of, and not connected with, the sub-contract intended to be executed between plaintiff and defendant No. 3. Despite not awarding sub-contract to the plaintiff by defendant No. 3, the performance bank guarantee was sought to be invoked by defendant No. 3.

7. After these resolutions, an application was made to the bank for issuance of bank guarantee. With this application for approvals, plaintiff made annexures containing the details of contract and nature of work to be done by the plaintiff. Annexure 'G' to application made to Vijaya Bank is the contract entered into between plaintiff and Bhandari Engineers and Builders Saudi Arabia, on which plaintiff relied and sought performance bank guarantee. The bank guarantee was sought from defendant No. 1, bank on the basis of this sub-contract. A perusal of various terms and conditions of this sub-contract between BEBSA and plaintiff shows that BEBSA and plaintiff were closely associated and both agreed that in case of any claims or demands raised by the sub-contractor and such claims and demands being similar as claims and demands of the contractor against the owner or third party, the sub-contractor shall make no claims or demands against the contractor but both will join hands and such claims and demands shall be made against the third party or parties considered to be at fault.

7.2 From the above, it may be observed that against a non-funding Bank Guarantee issued by BEandBPL of S.R.12.5 Million and with an investment of S.R. 3.25 Million only. Bhandari Engineers and Builders Pvt. Ltd. are likely to earn a profit of S.R.12.03 Million in foreign exchanges. Further, the financial exposure has been reduced considerably. The out-flow of foreign exchange from the country has been reduced from S.R.8.5 Million to S.R. 2.8 Million. Further, additional counter bank guarantee was required for purchase of Equipments to the tune of S.R. 10.0 Million, which has been eliminated. Against this investment, it is anticipated that the company will earn a Foreign Exchange equal to S.R.12.03 Million. Not only we have been able to save encashment of Bank Guarantee but Staff and Management of BEandBPL would gain experience for working in Saudi Arabia and would be in better position to participate in the big development programme that have been announced recently. We expect that with our performance, we will be able to get ourselves approved as Principal Contractor with the various departments in Kingdom of Saudi Arabia.