ABDUL RUSSAK Vs. CHERANELLOOR GRAMA PANCHAYATH

JUDGEMENT

(1.) The petitioner is a contractor, who had supplied goods to the first respondent Panchayat.

(2.) There is no dispute that the Stores Purchase Manual, issued by the Authority of the Government of Kerala, binds the Panchayat and regulates its activities, in so far as the purchases are concerned. Clause 52 of the Stores Purchase Manual provides that security may be taken in any of the nine forms enumerated therein, namely (i) Cash, (ii) Government Promissory Notes, Municipal Debentures or Port Trust Bonds, (iii) Stock Certificate of the Central or State Government/s (iv) National Savings Certificates, Government of India 12 years National Plan Savings Certificates and 10 year Treasury Savings Certificate, (v) Treasury Savings Bank Deposits, (vi) Post Office Savings Bank Deposits, (vii) Post Office Cash Certificates, (viii) Deposit receipts of recognized Banks and Co-operative Societies approved by Government for the purpose, and (ix) Bank guarantees from Scheduled Banks in India.

(3.) The controversy between the parties is as to whether the contractor is entitled to choose from the aforesaid nine types of securities, which he may offer or whether the Panchayat is entitled to insist the form in which it would take the security.