M/s. M and B Engineering Limited v. The State of Telangana
Case brief
What is this about?
Refund/release of Earnest Money Deposit (EMD) and Security Deposit totalling Rs. 64,34,375/- withheld by Telangana Government departments (Agricultural Marketing; Finance and Planning) for works contracts awarded since 2015, even after finalization and payment of bills and lapse of statutory period; contractor's writ of mandamus under Article 226 alleging arbitrariness (Articles 14, 19, 21); interim payment application under Section 151 CPC; respondents filed no counter; Court directed respondent Nos. 2 to 5 to refund within two months or communicate the reason; writ petition disposed of without costs. Relevant precedential area: recovery of withheld deposits/retention amounts by contractors from public authorities post bill-finalization.
What did the court decide?
Direction to respondent Nos. 2 to 5 to return the Earnest Money Deposit and Security Deposit deposited by the petitioner within two months from the date of receipt of a copy of the order, failing which to communicate the reason to the petitioner; writ petition disposed of; miscellaneous applications, if any, closed; no order as to costs.