Disposed

Rds Project Ltd. v. Central Public Works Department(Cpwd)

Kerala HC8 Sept 2021WP(C)/12029/2021

Case brief

AI extract

What is this about?

This writ petition sought payment of a construction bill. The court held that the Central Public Works Department must hear both parties regarding final settlement and rectification work within three weeks and release the balance amount within three weeks thereafter, rather than issuing an immediate payment order.

What did the court decide?

Directed CPWD to hear parties on settlement within 3 weeks and pay due amount within 3 weeks of such hearing.

Rds Project Ltd. Vs Central Public Works… — Contract and Commercial Disputes | Kerala HC (2021)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE P.V.KUNHIKRISHNAN

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WEDNESDAY, THE 8^TH DAY OF SEPTEMBER 2021/ 17TH BHADRA, 1943

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WP(C) NO. 12029 OF 2021

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PETITIONER:

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RDS PROJECT LTD HEAD OFFICE:427, SOMDUTT CHAMBERS-II, 9, BHIKAJI CAMA PLACE, NEW DELHI-110066, REGIONAL OFFICE AT SHIHAB THANGAL ROAD, PANAMPILLY NAGAR, KOCHI-682019, REPRESENTED BY ITS ASSOCIATE DIRECTOR, MR.AMIT VARGHESE JOSEPH, AGED 30 YEARS, S/O. DR.JOSEPH VARGHESE.

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BY ADVS. DEEPU THANKAN UMMUL FIDA LAKSHMI SREEDHAR

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RESPONDENTS:

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1 CENTRAL PUBLIC WORKS DEPARTMENT(CPWD) REPRESENTED BY ITS EXECUTIVE ENGINEER, IISER TVM PROJECT DIVISION-1, MELETHUMELE, VATTIYOORKAVU P.O., THIRUVANANTHAPURAM-695013.

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2 THE EXECUTIVE ENGINEER IISER TVM PROJECT DIVISION-1, MELETHUMELE, VATTIYOORKAVU P.O., THIRUVANANTHAPURAM-695013.

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3 INDIAN INSTITUTE OF SCIENCE OF EDUCATION AND RESEARCH (IISER) MARUTHUMALA P.O., VITHURA, THIRUVANANTHAPURAM-695551, REPRESENTED BY ITS REGISTRAR.

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BY ADV SRI.KRISHNADAS P.NAIR, CGC

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WP(C) NO. 12029 OF 2021

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OTHER PRESENT:

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SRI.MILLU DANDAPANI, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 12029 OF 2021

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P.V.KUNHIKRISHNAN, J.

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===================

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WP(C) No. 12029 OF 2021

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===================

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Dated this the 8^th day of September 2021

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J U D G M E N T

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The above writ petition is filed with the following

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prayers;

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“ I. Issue a writ of mandamus or any other writ or order or direction directing the respondents to release the balance payment of Ext.P3 final bill and the amount due as per Ext.P4 compilation of the pending bills, forthwith.

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ii. Issue a writ of mandamus or any other writ or order or direction directing the third respondent to pay interest at the rate of 7% to the petitioner for the delayed period;

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iii. Pass such other orders as this Hon'ble Court deems, fit, proper and necessary in the circumstances of the case.”

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The petitioner is a limited company engaged in the

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business of construction. The third respondent is an

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autonomous institution under the Ministry of Education,

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WP(C) NO. 12029 OF 2021

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Government of India. In the year 2014, Central Public Works Department (for short 'CPWD'), the first respondent herein invited tender for the construction of civil structures for residential area at IISER Campus at Vithura, Thiruvanathapuram-Phase I, SH 5 Nos. Housing Blocks (C1, C2, C3, D1 & D2), Roads, Overhead tanks-III, substation Building-III including internal and External Civil and Electrical Services, Firefighting, Lifts, Solar water heating system and Sight development-9 Balance work. The petitioner was the lowest tenderer and the work was awarded to the petitioner by the 1^st respondent as per Ext.P1 letter of acceptance. In terms of the contract, it is the case of the petitioner that, they completed the construction to the satisfaction of the respondents and Ext.P2 completion certificate was issued. It is the case of the petitioner that, the final bill submitted by the petitioner was approved by the CPWD and part payment was effected on three occasions. The grievance of the petitioner is

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WP(C) NO. 12029 OF 2021

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that, there is inordinate delay in settling the final bill and vide Ext.P7 the 1^st respondent informed that lack of funds on the part of the IISER is the only reason for the delay in releasing

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the payment. In situation, this writ petition was filed before this Court.

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When this writ petition came up for consideration

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on 05.07.2021 this Court passed the following order;

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“ Senior counsel Smt. Sumathi Dandapani instructed by Shri. Millu Dandapani submits that an amount of Rs. 2 Crores can be paid by 30/07/2021. The submission is recorded.

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The counsel for the 3^rd respondent submits that certain details are availed from the 1^st respondent for finalising the balance amount that are to be paid to the petitioner. The 1^st respondent shall ensure that necessary details are submitted to the 3^rd respondent at the earliest.”

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4. Thereafter, the matter again came up for

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consideration on 12.08.2021. On that day this Court passed

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the following order;

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“ The Central Public Works Department (CPWD) to release another amount of Rs. 2 Crores to the petitioner within a period of three

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WP(C) NO. 12029 OF 2021

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weeks. The CPWD shall file a sttement stating whether the CPWD has directed the petitioner to carry out any repair works in the work carried out on behalf of IISER and if so, the approximate value of the said work.”

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5. The learned CGC submitted that, the amount as

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directed by this Court is already disbursed to the petitioner.

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The learned CGC also filed a statement dated 06.08.2021. It

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will be better to extract para 6 of the statement.

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“ This is being a deposit work, funds has to be allocated by the Client Department. As there is paucity of funds available now, this office is not in a position to make the balance payment. The balance payment of Final bill including the following claims shall be paid as and when the client department deposit the requisite funds.

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a) Balance Escalation towards 10CA & 10CC (Civil) Rs. 2,78,69,029/b) Balance Escalation towards 10CC (Electrical) -Rs. 27,57,884/c) Reimbursement of ESI Rs. 12,26,118/d) Reimbursement of EPF Rs. 14,04,536/-----------------------d) Total Rs..3,32,57,567/-

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The withheld amount from various Bills amounting Rs. 37,70,459/- shall be released in accordance with the terms and condition of the Agreement.”

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6. The learned counsel for the 3^rd respondent

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submitted that, the entire amount is now transferred to the 1^st respondent. But the learned counsel submitted that,

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WP(C) NO. 12029 OF 2021

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there is some rectification work is to be done by the petitioner and that is not completed even now. According to the petitioner, 90% of the rectification work is completed

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and that is why the amount is transferred to the 1^st respondent. But, according to the 3^rd respondent, some more rectification work is to be completed by the petitioner. The petitioner contended that, there may be a direction to the 1^st respondent to release the fund, subject to the condition that the rectification work will be completed by the petitioner to the satisfaction of the 3^rd respondent. According to the petitioner, an amount of Rs. 1.78 crores is the balance amount to be paid. But this is disputed by the respondents.

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I don't want to make any observations about these contentions. Admittedly, some balance amount is there to be paid to the petitioner. It is the case of the 3^rd respondent that, some rectification work is also to be done

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WP(C) NO. 12029 OF 2021

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by the petitioner. According to the petitioner, the rectification work is to be done by the CPWD. This is disputed by the learned CGC. I don't want to go to this controversy. According to me, the 1^st respondent can hear the petitioner and the 3^rd respondent and thereafter decide the matter about the release of balance amount to the petitioner. There can be a time limit also for hearing and final settlement of the bill amount to the petitioner.

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Therefore, this writ petition is disposed in the following manner;

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The 1^st respondent will hear the petitioner and 3^rd respondent regarding the final settlement of the bill amount to the petitioner and pass appropriate orders in accordance to law, within three weeks from the date of receipt of this judgment.

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The learned counsel for the petitioner submitted that, the representative of the petitioner will appear before

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WP(C) NO. 12029 OF 2021

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the 1^st respondent within one week itself. The 1^st respondent is free to request the petitioner to appear on any date convenient to the 1^st respondent. Notice should be given to the 3^rd respondent also.

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Based on the decision by the 1^st respondent, the balance amount due to the petitioner will be paid within three weeks from the date of the decision by the 1^st

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respondent as directed in clause 1.

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(Sd/-)

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P.V.KUNHIKRISHNAN

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JUDGE

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WP(C) NO. 12029 OF 2021

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APPENDIX OF WP(C) 12029/2021

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PETITIONER EXHIBITS

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Exhibit P1 TRUE COPY OF THE LETTER OF ACCEPTANCE ISSUED BY THE FIRST RESPONDENT DATED 24.03.2016. Exhibit P2 TRUE COPY OF THE COMPLETION CERTIFICATE ISSUED BY THE SECOND RESPONDENT DATED 28.10.2019. Exhibit P3 TRUE COPY OF THE COVERING LETTER SUBMITTED BY THE PETITIONER ALONG WITH THE FINAL BILL DATED 20.06.2020. Exhibit P4 DETAILS OF THE COMPILATION OF THE BALANCE AMOUNT DUE FROM THE RESPONDENTS. Exhibit P5 TRUE COPY OF THE LETTER SUBMITTED BY THE PETITIONER DATED 10.02.2021.

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Exhibit P6 TRUE COPY OF THE LETTER ISSUED BY THE SECOND RESPONDENT DATED 27.05.2021.

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// True Copy // PA To Judge

Rds Project Ltd. v. Central Public Works Department(Cpwd)

Case brief

What is this about?

What did the court decide?

Rds Project Ltd. v. Central Public Works Department(Cpwd)

Case brief

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What did the court decide?

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