Partly allowed

Surabhi Earth Movers v. the General Manager

Kerala HC19 Jul 2022WP(C)/13813/2022

Case brief

AI extract

What is this about?

In a writ petition filed by a contractor disputing withholding of dues by Southern Railway, the court directed the refund of deposits immediately and ordered expeditious processing of the final bill upon compliance with formalities, treating funds paucity as an invalid defense for deposits.

What did the court decide?

Direction to refund Earnest Money Deposit and Security Deposit within two months; to process final bill sanctions after compliance with formalities.

Surabhi Earth Movers Vs the General Manager — Contract and Commercial Disputes | Kerala HC (2022)

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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 V.G.ARUN

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TUESDAY, THE 19^TH DAY OF JULY 2022 / 28TH ASHADHA, 1944 WP(C) NO. 13813 OF 2022

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PETITIONER:

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SURABHI EARTH MOVERS

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HIGH SCHOOL ROAD, KOOTHATTUKULAM, ERNAKULAM REPRESENTED BY ITS PARTNER JINSON N JOHN, AGED 33 YEARS, S/O. N U JOHN, NIRAPPUMYALIL HOUSE, KOOTHATTUKULAM ERNAKULAM 686 662 BY ADVS. S.SHANAVAS KHAN S.INDU

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RESPONDENTS:

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1 THE GENERAL MANAGER SOUTHERN RAILWAY HEAD QUARTERS OFFICE, PARK TOWN, CHENNAI 600 003

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2 THE FINANCIAL ADVISOR AND CHIEF ACCOUNTS OFFICER(CONSTRUCTION) SOUTHERN RAILWAY, ERNAKULAM 682 016

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3 THE DEPUTY CHIEF ENGINEER-II (CONSTRUCTION) SOUTHERN RAILWAY, THIRUVANANTHAPURAM 695 014

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BY ADVS. MANU S., ASGI V. GIRISH KUMAR, CGC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.07.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 13813 OF 2022

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JUDGMENT

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Dated this the 19^th day of July, 2022

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The petitioner executed certain works for the Railways and some payments were made in accordance with the progress of the work. After completing the work, the petitioner submitted a final bill for Rs.40,00,000/- inclusive of the amount due as per the price variation clause. Besides the said amount, an amount of Rs.20,00,000/- is due towards additional items of works and entrusted, Rs.5,60,130/- on account of Earnest Money Deposit and Rs.50,18,805/- towards Security Deposit. Thus, altogether an amount of Rs.1,15,78,935/- is due to the petitioner. The petitioner’s grievance is that, in spite of taking measurements and being satisfied with the work executed, no steps are being taken to disburse the amounts due. Hence, this writ petition.

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Heard the learned Counsel for the petitioner

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WP(C) NO. 13813 OF 2022

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and the learned Central Government Counsel.

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The arguments and the supporting

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documents show that the respondents are admitting the amounts due towards Earnest Money Deposit and Security Deposit. The reason for non-disbursal of the amount is stated to be the paucity of funds. As regards the payment of balance amount towards the final bill, the submission is that the petitioner has to comply with certain procedural formalities, upon which alone, the bills can be verified and sanction for payment accorded.

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Inasmuch as, there is no dispute with respect to the amounts due towards Earnest Money Deposit and Security Deposit, the respondents cannot deny payment on the ground of paucity of funds. Therefore, the respondents are directed to refund the Earnest Money Deposit and Security Deposit within two months. As regards the amount towards the final bill, once the petitioner complies with the requisite formalities, expeditious action for verification and

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WP(C) NO. 13813 OF 2022

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processing of the bill and sanctioning the amount

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shall be taken by the respondents.

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The writ petition is disposed of accordingly.

Sd/-

V.G.ARUN JUDGE

NB/19-7

WP(C) NO. 13813 OF 2022

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APPENDIX OF WP(C) 13813/2022

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PETITION	ER’S EXHIBITS
EXHIBIT	P1	TRUE COPY OF THE LETTER OF ACCEPTANCE DATED 10-
		07-2018 ISSUED BY THE THIRD RESPONDENT
EXHIBIT	P2	TRUE COPY OF THE COMMUNICATION DATED 09-11-2021 ISSUED BY THE PETITIONER TO THE 3RD RESPONDENT
EXHIBIT	P3	TRUE COPY OF THE COMMUNICATION DATED 05-01-2022 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER.
EXHIBIT	P4	TRUE COPY OF THE COMMUNICATION DATED 17-02-2022 ISSUED BY THE PETITIONER TO THE 3RD RESPONDENT

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RESPONDENTS' EXHIBITS: NIL

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TRUE COPY

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P.A. TO JUDGE

Surabhi Earth Movers v. the General Manager

Case brief

What is this about?

What did the court decide?

Surabhi Earth Movers v. the General Manager

Case brief

What is this about?

What did the court decide?

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Surabhi Earth Movers Vs the General Manager