K. S. RADHAKRISHNAN, J. ( 1 ) THE question that is posed for our consideration in this case is whether a Bank guarantee executed in performance of a contract between the parties can be invoked for non-performance of another contract between the same parties? ( 2 ) APPELLANT entered into a contract with first respondent - original petitioner of Special Civil Application No. 18347 of 2007 on 15. 2. 2005 for maintenance of Abu Road - Deesa Section National Highway No. 14, for a period of 24 months. For due performance of that contract, petitioner had submitted two Bank guarantees dated 10. 1. 2005 for a sum of Rs. 20,25,700/- and for Rs. 50,07,500/ -. Bank guarantees were initially for a period upto 31. 8. 2007, which was extended upto 29. 2. 2008. There was no dispute pertaining to the above mentioned contract between the parties. However, dispute cropped up between the same parties in respect of another contract for supply of manpower for collection of toll of Samkhyali-Gandhidham National Highway No. 8-A. Respondent No. 1 authority found that there was huge loss caused by the petitioner in respect of that contract and a notice dated 2. 6. 2007 was issued asking petitioner to pay damages. Consequently, it had invoked the Bank guarantees executed in respect of work pertaining to maintenance of Abu Road-Deesa Section National Highway No. 14. Under the circumstances, petitioner has approached this Court. ( 3 ) PETITIONER has taken up the stand that there was no justification in invoking Bank guarantees executed in respect of work relating to maintenance of Abu Road-Deesa Section National Highway No. 14 for non-performance of another contract relating to supply of manpower for collection of toll and maintenance of Samakhayali-Gandhidham Highway. Since both contracts are independent contracts and Bank guarantees were separately executed for the due performance of respective contracts between the parties, due to non-performance of one contract, Bank guarantees executed in respect of another contract cannot be invoked. ( 4 ) LEARNED Single Judge accepting contention raised by the petitioner, allowed the petition and quashed the steps taken by first respondent authority in invoking Bank Guarantees executed for due performance of the contract in respect of maintenance of Abu Road-Deesa Section National Highway No. 14, non-performance of which there is no dispute. ( 4 ) LEARNED Single Judge accepting contention raised by the petitioner, allowed the petition and quashed the steps taken by first respondent authority in invoking Bank Guarantees executed for due performance of the contract in respect of maintenance of Abu Road-Deesa Section National Highway No. 14, non-performance of which there is no dispute. ( 5 ) WE heard learned counsel for either side at length and have gone through the terms and conditions of both the Bank guarantees and found that the Bank guarantees have been executed between the parties for due performance of respective contracts. Unless there is a specific term in the Bank guarantee or in the contract between the parties that due to non-performance of one contract, Bank guarantee executed for due performance of another contract can be invoked, one party to the contract cannot invoke a Bank Guarantee executed in due performance of another contract. We may refer to Bank guarantee dated 10. 1. 2005 executed in respect of maintenance of Abu Road-Deesa Section National Highway No. 14. Relevant portion of the Bank guarantee is extracted below:- "and WHEREAS it has been stipulated by you in the said contract that the Contractor shall furnish you with a Bank Guarantee by a Nationalised/scheduled bank of India for the sum specified therein as security for compliance with his obligations in accordance with the contract. " "now THEREOF we hereby affirm that we are the guarantor and responsible to you on behalf of the contractor upto a total of Rs. 50,07,500/- (amount of guarantee) (Rupees fifty lacs seven thousand five hundred only), such sum being payable in the types and proportions of currencies in which the contract price is payable and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums within the limits of Rs. 50,07,500 (amount of guarantee) as aforesaid without your needing to prove as to show grounds or reasons for your demand for the sum specified therein. " ( 6 ) REFERENCE may also be made yet another Bank guarantee executed on 10. 1. 2005 for the same contract. 50,07,500 (amount of guarantee) as aforesaid without your needing to prove as to show grounds or reasons for your demand for the sum specified therein. " ( 6 ) REFERENCE may also be made yet another Bank guarantee executed on 10. 1. 2005 for the same contract. Relevant portion of the said Bank guarantee is extracted below for easy reference:-"we further agree that no change or addition to or other modification of the items of the contract or of the works to be performed there under or of any of the contract documents which may be made between you and the contractor shall in any way release us from any liability under this guarantee, and we hereby waive notice of any such change, addition or modification. " ( 7 ) THE above terms of Bank guarantee would clearly indicate that Bank guarantees were executed as security for due compliance of the obligations in respect of that particular contract. The above mentioned two Bank guarantees cannot be invoked in respect of another contract between the parties, which is an independent contract. ( 8 ) COUNSEL appearing for the first respondent - appellant herein, placed reliance on the decisions of the Apex Court reported in General Electric Technical Services Company Inc Vs. Punj Sons (P) Ltd.- AIR 1991 SC 1994 , State of Maharashtra and anr. Vs. National Construction Company - AIR 1996 SC 2367 , U. P. State Sugar Corporation Vs. Sumac International Ltd.- AIR 1997 SC 1644 , Dwarikesh Sugar Industries Ltd. Vs. Prem Heavy Engineering Works Pvt. Ltd.- AIR 1997 2477 (1), and State Bank of India Vs. Mula Sahakari Sakhar Karkhana Ltd.- AIR 2007 SC 2361 and submitted that once Bank guarantee is invoked the Bank is bound to honour it without any demur and cannot go behind the reason for invoking the Bank guarantee. ( 9 ) LEARNED counsel appearing for the petitioner - respondent No. 1 placed reliance on the decisions of the Apex Court in Hindustan Construction Co. Ltd. Vs. State of Bihar - 1999 SC 3710 (1), Larsen and Toubro Ltd. Vs. Maharashtra State Electricity Board - (1995) 6 SCC 68 and submitted that both the contracts are independent contracts and Bank guarantee executed in respect of one contract cannot be invoked in respect of another contract, assuming that there is dispute in respect of latter contract. Ltd. Vs. State of Bihar - 1999 SC 3710 (1), Larsen and Toubro Ltd. Vs. Maharashtra State Electricity Board - (1995) 6 SCC 68 and submitted that both the contracts are independent contracts and Bank guarantee executed in respect of one contract cannot be invoked in respect of another contract, assuming that there is dispute in respect of latter contract. ( 10 ) WE are of the view that both the contracts are independent and separate contracts and Bank guarantee executed in respect of one contract between the parties cannot be invoked in respect of another contract, unless there is a specific stipulation to that effect in the contract between the parties. Admittedly, there is no dispute in respect of the contract executed for maintenance of Abu Road-Deesa Section National Highway No. 14, for which both Bank guarantees were executed, hence those Bank guarantees cannot be invoked for non-performance of another independent contract between the parties. We therefore find no error in the reasoning of the learned Single Judge. Appeal therefore lacks merit and the same is dismissed.