SALIM P. Vs. STATE OF KERALA AND ORS.

JUDGEMENT

(1.) THE petitioner is a Contractor, who had undertaken various construction works for the Public Works Department and as evident from Ext. P3 non -payment certificate issued by the 4th respondent dated 20.7.2015, a total amount of Rs. 12,14,155/ - is pending payment for want of letter of credit.

(2.) WHILE so, the Public Works Department invited tender for execution of Pre -monsoon work, 2015 for rectification of water accumulated reaches and repairs to various roads under Roads Section, Tirur. As evident from Ext. P1 selection notice, the tender submitted by the petitioner was accepted at 27.66% below the estimate rate and the petitioner was asked to produce bank guarantee for security deposit of Rs. 34,700/ - as per Ext. P6 Government order dated 5.1.2015, out of which 50% of the security deposit and performance guarantee of Rs. 2,05,100/ - should be in the form of Treasury Deposit for the fulfilment of the contract for which necessary declaration in the form of bank guarantee from Nationalised/Scheduled Bank for a period of 18 months should be produced. It is relying Ext. P3 non -payment certificate, the petitioner is contending that, when a total sum of Rs. 12,14,155/ - is pending payment, the 2nd respondent has absolutely no justification in insisting the petitioner to produce security deposit as well as performance guarantee, without adjusting the amount covered by Ext. P3.

(3.) ON 22.7.2015, the petitioner made Ext. P2 request before the 2nd respondent to adjust the security deposit and performance guarantee referred to in Ext. P1 from the pending payment covered by Ext. P3 non -payment certificate. But the said request was turned down by Ext. P5 communication dated 22.7.2015, relying on Ext. P6 Government Order dated 5.1.2015, which provides that 50% of the performance guarantee will be in the form of Treasury Deposit and rest in the form of Bank guarantee or any other form prescribed in the revised PWD Manual.