Allowed

Zubair v. Vs State of Kerala

Kerala HC21 Nov 2022WP(C)/6987/2022

Case brief

AI extract

What is this about?

Petitioner challenged inordinate delay in releasing security deposit and retention amount for water pumping main work completed in 2020. Court held delay due to non-commissioning caused by other contractors is unreasonable and directed respondents to release dues within four months upon executing a bond.

What did the court decide?

Respondents directed to release amount due within four months from the date of executing a simple bond by the petitioner.

Zubair v Vs State of Kerala — 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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MONDAY, THE 21^ST DAY OF NOVEMBER 2022 / 30TH KARTHIKA, 1944 WP(C) NO. 6987 OF 2022

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PETITIONER:

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ZUBAIR V AGED 50 YEARS S/O ABDULLA, CHERUPARAMBIL HOUSE, KODUR P.O.MANGATTUPULAM, MALAPPURAM-676 504.

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BY ADVS. GEORGE MATHEW M.D.SASIKUMARAN SUNIL KUMAR A.G DIPU JAMES MATHEW K.T. GEORGE K.V. STEPHY K REGI

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RESPONDENTS:

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1 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, WATER RESOURCES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001

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2 KERALA WATER AUTHORITY REP BY ITS MANAGING DIRECTOR, JALA BVHAVAN, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033.

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3 SUPERINTENDING ENGINEER, KERALA WATER AUTHORITY, PUBLIC HEALTH CIRCLE, MALAPARAMBA, KOZHIKODE DISTRICT-673 010

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4 EXECUTIVE ENGINEER, KERALA WATER AUTHORITY, PROJECT DIVISION, MALAPARAMA, KOZHIKODE DISTRICT-673 010

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5 THE FINANCE MANAGER, KERALA WATER AUTHORITY, JALA BHAVAN, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033.

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BY ADV P.M.JOHNY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21.11.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

W.P.(C). 6987/2022

JUDGMENT

Dated this the 21^st day of November, 2022

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The petitioner is aggrieved by the inordinate delay in releasing security deposit, retention amount and other amounts furnished in connection with the work '10 ARWSSNRDW-CWSS to Thariyode, Pozhuthana, Kottathara, Vengapally and Padinharethara Panchayats in Wayanad District – Supplying, laying, testing and commissioning of 350 mm D1 K9 RAW Water pumping main from intake well to treatment plant at Kabanikunnu.' The petitioner completed the work and was issued with Ext.P3 completion certificate on 26.06.2020. Despite issuance of the completion certificate, the retention amount, security deposit and other amounts are not released for the reason that the project is not commissioned and charged.

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Learned Counsel for the petitioner submitted that the project is not commissioned as certain other components of

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W.P.(C). 6987/2022

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the work are yet to be completed. It is submitted that delay on the part of the other contractors cannot result in the amount legitimately due to the petitioner being denied.

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Learned Standing Counsel for the Water Authority submitted that the practice being followed is to release the retention amount on the strength of Bank Guarantee. Reference is made to Clause 8.16.1(c) of the notice inviting tender which reads as under;

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“If the trial running and commissioning is delayed not due to the fault of the contractor, after 6 months of completion, the above 5% (TR&C) may be released on Bank Guarantee equal to the amount of deposit.”

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Having heard learned Counsel on either side, I find substantial merit in the contention of the petitioner that, having completed the work to the satisfaction of the Water Authority almost two years back, delay in completing the other components of the work and the consequential delay in commissioning and charging the project cannot be put forth as a reason for denying the amount legitimately due to the

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W.P.(C). 6987/2022

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petitioner. I also take note of Ext.P4 judgment rendered under similar circumstances.

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The writ petition is hence disposed of directing the respondents to release the amount due to the petitioner on the petitioner executing a simple bond. The amount shall be disbursed within four months from the date on which the petitioner executes the bond.

V.G.ARUN

JUDGE

W.P.(C). 6987/2022

APPENDIX OF WP(C) 6987/2022

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PETITIONER EXHIBITS

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Exhibit P1 TRUE COPY OF RELEVANT PAGES OF NIT NO SE/PHC/KKD/08/2016-17 DATED 13.2.2016 ISSUED BY 3RD RESPONDENT Exhibit P2 TRUE COPY OF WORK ORDER NO SE/KKD/D5-359/16 DATED 8.3.2017 ISSUED BY 3RD RESPONDENT Exhibit P3 TRUE COPY OF COMPLETION CERTIFICATE DATED 26.6.2020 ISSUED BY 4TH RESPONDENT Exhibit P4 TRUE COPY OF JUDGMENT DATED 21.12.2020 IN WPC NO 19204 OF 2020

Zubair v. Vs State of Kerala

Case brief

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Zubair v. Vs State of Kerala

Case brief

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