Disposed

Chicago Constructions International (P) Ltd. v. Kerala Water Authority

Kerala HC8 Jan 2021WP(C)/3766/2020

Case brief

AI extract

What is this about?

The High Court of Kerala directed respondents to release the petitioner's Bank Guarantee within one month upon execution of an ordinary bond, balancing the petitioner's right to security with responsiveness to other contractors' incomplete work on the project.

What did the court decide?

Direction to release Bank Guarantee within one month upon execution of an ordinary bond by the petitioner.

Chicago Constructions International (P) Ltd… — 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 N.NAGARESH

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FRIDAY, THE 08TH DAY OF JANUARY 2021/18TH POUSHA, 1942

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WP(C).No.3766 OF 2020(U)

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PETITIONER:

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CHICAGO CONSTRUCTIONS INTERNATIONAL (P) LTD, TC 22/2703, CHICAGO LANE, KOCHAR ROAD, SASTHAMANGALAM, THIRUVANANTHAPURAM-695010, REP. BY THE MANAGING DIRECTOR, MOHANAKUMAR S.

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BY ADVS. SRI.N.KRISHNA PRASAD SHRI.B.S.SANKAR LAL SRI.DEEPAK VARUGHUESE MATHEW SMT.GEETHU SUSAN VARGHESE

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RESPONDENTS:

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1 KERALA WATER AUTHORITY, JALABHAVAN, THIRUVANANTHAPURAM-695033, REPRESENTED BY ITS MANAGING DIRECTOR.

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2 THE MANAGING DIRECTOR, KERALA WATER AUTHORITY, JALABHAVAN, THIRUVANANTHAPURAM-695033.

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3 THE SUPERINTENDING ENGINEER, PH CIRCLE, KERALA WATER AUTHORITY, JALABHAVAN, THIRUVANANTHAPURAM-695033.

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4 THE EXECUTIVE ENGINEER, PROJECT DIVISION, KERALA WATER AUTHORITY, JALABHAVAN, THIRUVANANTHAPURAM-695033.

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5 THE CHIEF EXECUTIVE OFFICER, TECHNOPARK, ELECTRONIC TECHNOLOGY PARK KERALA, TECHNOPARK CAMPUS, THIRUVANANTHAPURAM-695033.

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WP(C) No.3766/2020

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: 2 :

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R1-4 BY ADV. SMT.MARY BENJEMIN, SC R1-4 BY SRI.P.BENJAMIN PAUL, SC, KERALA WATER AUTHORITY

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THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08.01.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C) No.3766/2020

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J U D G M E N T

~ ~ ~ ~ ~ ~ ~ ~ ~

Dated this the 8^th day of January, 2021

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The petitioner, a construction Company, seeks to direct respondents 1 to 5 to release the original of the Bank Guarantee along with the Security Deposit of ₹3 lakhs submitted by the petitioner in connection with the work captioned “Water Supply Scheme to Technocity at PallipuramDesign, Construction and commissioning or 9.2 MLD capacity Water Plant at Avanavanchery”.

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The fact that the petitioner-Company has completed their work under the agreement with the respondents, is not in dispute. The Bank Guarantee and Security Deposit of the petitioner were retained by the respondents as the project was not commissioned. Subsequently, pursuant to an interim order of this Court, the Security Deposit has been released to the petitioner, though

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WP(C) No.3766/2020

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: 4 :

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the project is yet to be commissioned.

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The learned Standing Counsel for the respondents would submit that Bank Guarantee can be released only after commissioning of the project. The project in question has not been commissioned. On a question as to the reason for noncommissioning of the project, the learned Standing Counsel for the respondents submitted that other components of the project work have not been completed by the respective contractors and that is the reason why the project could not be commissioned.

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Heard.

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The fact that the petitioner has completed their work is not in dispute. Other contractors who have to do other component works which are integral to the project, perhaps have not completed their part of the work. However, that cannot be a reason for the respondents to indefinitely delay the release of Bank Guarantee to the petitioner. At the same time, the interest of the respondents will also have to be protected.

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WP(C) No.3766/2020

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: 5 :

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In such circumstances, the writ petition is disposed

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of directing the respondents that if the petitioner executes an ordinary bond in place of the Bank Guarantee, the respondents shall release the Bank Guarantee within a period of one month, to the petitioner.

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Sd/-

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N. NAGARESH, JUDGE

aks/08.01.2021

WP(C) No.3766/2020

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APPENDIX

PETITIONER'S EXHIBITS:

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EXHIBIT P1	TRUE COPY ISSUED BY	OF TH THE THIR	E SELECTION D RESPONDENT.	NOTICE
EXHIBIT P2	TRUE CO CERTIFICAT	PY OF E DATED	THE COMP 11.6.2014.	LETION
EXHIBIT P3	TRUE COPY THE NOTICE	OF THE INVITIN	RELEVANT EXTRA G TENDER (VOLU	CTS OF ME I).
EXHIBIT P4	TRUE COPY MEETING DA	OF T TED 12.4	HE MINUTES O .2019.	F THE
EXHIBIT P5	TRUE COPY FIFTH RE RESPONDENT	OF THE SPONDENT DATED 3	COMMUNICATION TO THE 1.5.2019.	OF THE THIRD
EXHIBIT P6	TRUE COPY 30.4.2019	OF THE ISSUED	COMMUNICATION BY THE	DATED THIRD
	RESPONDENT THE FIFTH	TO THE RESPONDE	DGM (PROJEC NT.	TS) OF
EXHIBIT P7	TRUE COPY 13.1.2020.	OF THE	REPRESENTATION	DATED
EXHIBIT P8	TRUE COPY 17.3.2018	OF THE SUBMITTE	BANK GUARANTEE D BY THE PETIT	DATED IONER
EXHIBIT P9	TRUE COPY	OF THE	COMMUNICATION	DATED
	15.9.2020 RESPONDENT	ISSUED	BY THE	FOURTH
EXHIBIT P10	TRUE COPY 03.12.2020 THE FOURTH	OF THE ISSUED RESPOND	COMMUNICATION TO THE PETITIO ENT.	DATED NER BY

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Chicago Constructions International (P) Ltd. v. Kerala Water Authority

Case brief

What is this about?

What did the court decide?

Chicago Constructions International (P) Ltd. v. Kerala Water Authority

Case brief

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What did the court decide?

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