Petitioner sought directions regarding performance guarantee mode for a road construction contract. Court directed execution of agreement assuming trial court in the pending writ appeal succeeds.
Directed to execute agreement with bank guarantee and revocable undertaking for 50% treasury deposit if respondents succeed in pending writ appeal.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE SHAJI P.CHALY
WEDNESDAY, THE 10TH DAY OF JANUARY 2018 / 20TH POUSHA, 1939
WP(C).No. 895 of 2018
PETITIONER :
NIZAMUDEEN A., PROPRIETOR, M/S. THOPPIL CONSTRUCTIONS, THOLIKKUZHI, ADAYAMON P.O., KILIMANOOR, THIRUVANANTHAPURAM - 695614.
BY ADVS.SRI.AJITH KRISHNAN
SRI.S.R.AJITH
RESPONDENTS :
1. STATE OF KERALA, REPRESENTED BY SECRETARY, DEPARTMENT OF PUBLIC WORKS, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695001.
2. THE PROJECT DIRECTOR, PROJECT MANAGEMENT UNIT, KERALA ROAD FUND BOARD, SREEBALA BUILDINGS, T.C./339, 5TH FLOOR, KESTON ROAD, NANTHENKODE, KOWDIAR P.O., THIRUVANANTHAPURAM-695003
3. THE CHIEF ENGINEER, ROADS AND BRIDGES, THIRUVANANTHAPURAM - 33.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 10-01-2018,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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WP(C).No. 895 of 2018
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APPENDIX
PETITIONER'S EXHIBITS :
P2: COPY OF THE LETTER DATED 20/12/2017
P3: COPY OF THE JUDGEMENT DATED 24/10/2017 INWPC NO.22502/2017 ON THE FILE OF THIS HONOURABLE COURT.
RESPONDENT'S EXHIBITS : NIL.
//TRUE COPY//
P.A TO JUDGE
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SHAJI P. CHALY, J.
W.P.(C) No.895 of 2018
Dated this the 10th day of January, 2018
J U D G M E N T
Petitioner is an A class Contractor and is working with the 2nd and 3rd respondents. Petitioner was awarded with the work of 'Improvements to Venjaramoodu Ring Road in Thiruvananthapuram District'. The tender was accepted, evident from Ext.P1 letter of acceptance dated 23.12.2017 and the petitioner is directed to appear before the 2nd respondent to execute agreement and to furnish security deposit of Rs.1,13,35,200/- and out of the same, 50% should be by way of treasury deposit and performance guarantee of Rs.1,91,49,800/-. According to the petitioner, the insistence made by the respondents with respect to the 50% treasury deposit is against the letter and spirit of the directives contained in Ext.P3 judgment in W.P.(C) No.22502/2017 dated 24.10.2017. It is thus seeking appropriate directions, this writ petition is filed.
W.P.(C) No. 895 of 2018
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W.P.(C) No. 895 of 2018
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treasury deposit. The agreement shall be executed if and when the petitioner produces bank guarantee and the undertaking before the competent authority. Petitioner is granted two weeks time to execute agreement as per Ext.P1 notice of selection.
Writ petition is disposed of with the aforesaid directions and also directing the petitioner to comply with the directions, if and when the situation warrants.
Sd/- SHAJI P. CHALY JUDGE
smv 12.1.2018
2 issues framed by the court
Whether a contractor seeking to execute an agreement must provide performance guarantee in the form of treasury deposit or a bank guarantee despite pending appellate proceedings.
Whether the petitioner can be directed to comply with selection notice while reserving rights on pending writ appeal regarding security deposit modes.
Colour shows how this judgement treated each authority
W.P.(C) No.22502/2017Explained¶32
Nizamudeen A., Proprietor, M/S. Thopil Constructions
State of Kerala, represented by Secretary, Department of Public Works
The Project Director, Project Management Unit, Kerala Road Fund Board
The Chief Engineer, Roads and Bridges, Thiruvananthapuram
Shaji P. Chaly
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
Shaji P. Chaly
Parties & counsel
