EKK INFRASTRUCTURE LIMITED Vs. KERALA ROAD FUND BOARD

JUDGEMENT

(1.) The petitioner is an A Class Contractor in the Public Works Department. The respondents had invited bids for the work, namely KIIFB Work 2016-2017 improvements to Udumbanchola Chithirapuram Road (Km 0/000 to 45/880) as per the Notice Inviting Tender dtd. 17/8/2019.

(2.) As the petitioner was the lowest tenderer in the above tender proceedings, the 2nd respondent issued Ext.P2 letter accepting tender in respect of the above work for an amount of ?139,90,01,074/-. Thereafter, Ext.P4 contract was entered between the petitioner and the respondents. As per Part I of the Instructions to the bidders which form part of the Notice Inviting Tender, the successful bidder will have to submit Performance Guarantee before executing the agreement. In compliance to the same, the petitioner submitted Ext.P4 Bank Guarantee and Exts.P5 and P6 Treasury Fixed Deposits. Thereafter, the petitioner successfully completed the construction of the work and the 1st respondent issued Ext.P8 Completion Certificate to the petitioner.

(3.) As per Clause 7.10 of the instructions to the bidders, NIT, half of the Performance Guarantee in the form of Treasury Deposit can be released upon submission of an Indemnity Bond of equal amount by the contractor indemnifying the employer any loss on account of this after the virtual completion of the work.