M P SUNNY Vs. STATE OF KERALA

JUDGEMENT

(1.) THE petitioner undertook the tarring works of 5 roads under the 2nd respondent Grama Panchayat on contract. Four works were as a contractor and the 5th work was as the convener of a beneficiary committee constituted for doing the work. According to the petitioner, as per the agreement between the parties, the bitumen required for the tarring works was to be supplied by the respondents. For the tar so supplied, the respondents were entitled to deduct the price of bitumen from the contract amount due to the petitioner. But the deduction was to be as per the estimate costs and not as per the market price. While preparing the bill for the works done by the petitioner, the price of bitumen was deducted at the market price at the time of supply instead of the estimate price. The petitioner requested for refund of the excess amount deducted from the petitioner's bill amount. Since the same was not paid to the petitioner, the petitioner has approached this Court by filing this writ petition seeking the following reliefs:

(2.) THE contention of the petitioner is that as is evident from Ext.P3 resolution of the 2nd respondent Panchayat as also Ext.P4 Government order, the petitioner is entitled to the difference of costs of bitumen between the rates included in the estimate and the market rate as on the date of tender as tender excess. The petitioner therefore submits that the respondents may be directed to refund the petitioner the excess amount deducted from the petitioner's bill amount.

(3.) NO counter affidavit has been filed by the other respondents. 6. The 2nd respondent Panchayat has adopted Ext.P3 resolution in respect of deduction of price of bitumen from bill amounts of contractors. The same reads thus: 7. The Government has also issued Ext.P4 order in respect of the same subject matter which reads as follows: As per the Government Order read above, Government have permitted Local Governments to provide market rates as on the date of tender for bitumen and also to supply bitumen in respect of small works. Now Government are pleased to issue the following additional instructions: