Allowed¶40

S O H a I L S H a M S U D E E N v. Kerala Water Authority

Kerala HC2 Apr 2025WP(C)/1152/2025

Case brief

AI extract

What is this about?

Substitution of performance guarantee by adjustment against certified bill; Kerala Water Authority works contractor; Ext.P2 agreement; Ext.P4 CB-3 of CC-Xth & part bill; delay in payment of certified bills; undertaking/indemnity letter; one-month compliance; WP(C) 1152/2025; C.S. Dias, J.; writ petition allowed; parallel relief in WP(C) 42936/2024 (Ext.P7).

What did the court decide?

Second respondent directed to substitute the performance guarantee deposited under Ext.P2 agreement by adjusting the amount from Ext.P4 bill, subject to the petitioner executing the requisite undertaking/indemnity letter as per the respondents' regulations, the exercise to be completed within one month of production of a certified copy of the judgment. ¶40

S O H a I L S H a M S U D E E N Vs Kerala Water Authority — Kerala HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the second respondent should be directed to substitute the performance guarantee deposited by the petitioner under Ext.P2 agreement by adjusting the amount from Ext.P4 bill issued by the third respondent.

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Court's answer

On consideration of the facts and materials on record, and especially because the third respondent has issued Ext.P4 bill, the Court is satisfied that the writ petition is to be allowed.

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Ratio / Principle

Writ petition allowed by directing the second respondent to substitute the performance guarantee submitted by the petitioner for Ext.P2 agreement by adjusting the amount from Ext.P4 bill.

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Key takeaways

The petitioner would have to execute the requisite undertaking/indemnity letter in favour of the respondents as per their regulations.obiter¶39
The substitution exercise shall be carried out by the respondents within one month from the date of production of a certified copy of the judgment.ratio¶39

Detailed headnote1 paragraphs

Kerala HC at Ernakulam (C.S. Dias, J.), WP(C) No. 1152 of 2025, decided 02.04.2025: A works contractor who completed the work under Ext.P1 work order/Ext.P2 agreement and deposited Rs.1,10,28,400/- as performance guarantee with the Superintending Engineer (R2), Kerala Water Authority, sought substitution of the guarantee by adjusting the amount against Ext.P4 certified bill (CB-3 of CC-Xth & part bill dated 20.12.2024) issued by the Executive Engineer (R3), pleading delay by the Authority in paying certified bills and relying on Ext.P7 (WP(C) No. 42936 of 2024, dt. 10.12.2024) where identical relief was granted. Holding that, especially since the third respondent had issued Ext.P4 bill, the writ petition was to be allowed, the Court directed R2 to substitute the performance guarantee by adjusting the amount from Ext.P4 bill, subject to the petitioner executing the requisite undertaking/indemnity letter per the respondents' regulations, within one month of production of a certified copy of the judgment.

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2025:KER:28323

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WP(C) NO. 1152 OF 2025

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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 C.S.DIAS

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WEDNESDAY, THE 2^ND DAY OF APRIL 2025 / 12TH CHAITHRA, 1947

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WP(C) NO. 1152 OF 2025

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PETITIONER:

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S O H A I L S H A M S U D E E N AGED 41 YEARS S/O. SHAMSUDHEEN, RESIDING AT VADAPPILLY HOUSE, AMBATTUKAAVU, ALUVA, PIN - 683106

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BY ADVS. P.SHANES METHAR N.KRISHNA PRASAD A.MOHAMMED FAIZAL ARJUN P.V. HARKISH SREETHU V.S.

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RESPONDENTS:

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1 KERALA WATER AUTHORITY REP. BY ITS MANAGING DIRECTOR, JALA BHAVAN, VELLAYAMBALAM, THIRUVANTHAPURAM, PIN - 695033

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2 THE SUPERINTENDING ENGINEER OFFICE OF THE SUPERINTENDING ENGINEER, P.H.CIRCLE, KERALA WATER AUTHORITY, THIRUVALLA, PATHANAMTHITTA, PIN - 689101

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3 THE EXECUTIVE ENGINEER OFFICE OF THE EXECUTIVE ENGINEER, P.H.DIVISION, KERALA WATER AUTHORITY, ADOOR, PIN - 691523

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2025:KER:28323

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WP(C) NO. 1152 OF 2025

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OTHER PRESENT:

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SC - P.M.JOHNY, GEORGIE JOHNY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02.04.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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WP(C) NO. 1152 OF 2025

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2025:KER:28323

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Dated this the 2^nd day of April, 2025

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JUDGMENT

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The writ petition is filed to direct the second respondent to substitute the performance guarantee deposited by the petitioner as per Ext.P2 agreement, by adjusting the amount from Ext.P4 bill issued by the third respondent.

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The petitioner is a works contractor, who was awarded with the work covered by Ext.P1 work order. Consequently, the petitioner had executed Ext.P2 agreement and deposited Rs.1,10,28,400/- towards performance guarantee with the second respondent. The petitioner has successfully completed the work. The third respondent has issued Ext.P4 - CB -3 of CCXth & part bill. Due to the delay on the part of the respondents in paying the certified bills, the petitioner is unable to pay his creditors, suppliers and labourers. In the said background, the petitioner has requested the

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WP(C) NO. 1152 OF 2025

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2025:KER:28323

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respondents to substitute the performance guarantee submitted for Ext.P2 agreement by adjusting the amount from Ext.P4 bill. However, the respondents have not taken any action in the matter. In an identical matter, by Ext.P7 judgment, this Court has permitted the above course. The petitioner is entitled to the benefit of a similar judgment. Hence, the writ petition.

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Heard; the learned counsel for the petitioner and the learned Standing Counsel appearing for the respondents.

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On a consideration of the facts and the materials on record, especially in view of the fact that the third respondent has issued Ext.P4 bill, I am satisfied that the writ petition is to be allowed.

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In the afore said circumstances, I allow the writ petition, by directing the second respondent to substitute the performance guarantee submitted by the petitioner for Ext.P2 agreement by adjusting the

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2025:KER:28323

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WP(C) NO. 1152 OF 2025

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amount from Ext.P4 bill. Needless to mention, the petitioner would have to execute the requisite undertaking/indemnity letter in favour of the respondents as per their regulations. The above exercise shall be carried out by the respondents within one month from the date of production of a certified copy of this judgment.

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The writ petition is ordered accordingly.

SD/-

C.S.DIAS, JUDGE

rmm2/4/2025

2025:KER:28323

WP(C) NO. 1152 OF 2025

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APPENDIX OF WP(C) 1152/2025

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PETITIONER EXHIBITS

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Exhibit P1 A TRUE COPY OF THE LETTER NO. SE/PHC/TVLA/550/2022/JJM-ERTH DATED 08.02.2023 OF THE SECOND RESPONDENT (WORK ORDER)

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Exhibit P2 A TRUE COPY OF THE RELEVANT PAGES OF THE AGREEMENT NO. 38/SE/PHC/TVLA/2022-2023 DATED 23.02.2023 BETWEEN THE PETITIONER AND THE SECOND RESPONDENT

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Exhibit P3 A TRUE COPY OF THE LETTER DATED 28.12.2024 SUBMITTED BY THE PETITIONER BEFORE THE SECOND RESPONDENT Exhibit P4 A TRUE COPY OF THE DULY CERTIFIED CB-3 OF CC -XTH & PART BILL DATED 20.12.2024 OF EXHIBIT P1 WORK

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Exhibit P5 A TRUE COPY OF THE G.O. (RT) NO. 5989/2020/FIN. DATED OCTOBER 16, 2020

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Exhibit P6 A TRUE COPY OF THE ORDER NO. JB/5408/2023 - F1(FUNDS) DATED 06.01.2024 ISSUED BY THE MANAGING DIRECTOR OF THE FIRST RESPONDENT

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Exhibit P7 A TRUE COPY OF THE JUDGMENT OF THIS HON’BLE COURT DATED 10.12.2024 IN W.P. (C) NO. 42936 OF 2024

S O H a I L S H a M S U D E E N v. Kerala Water Authority

Case brief

What is this about?

What did the court decide?

S O H a I L S H a M S U D E E N v. Kerala Water Authority

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

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