KURIEN Vs. STATE OF KERALA

JUDGEMENT

(1.) IN this batch of 119 Original Petitions, the challenge is against the Government Order, G. O. (MS) 127/84/pw. F & P. dated 12-11-1984 revising the fees and other charges leviable in the matter of registration and renewal of contractors and also conditions governing the same. O. P. No. 279 of 1986 was treated as the main case and Mr. V. M, Kurian, Advocate for the petitioners therein, submitted the leading arguments in these batch of cases. The counsel, who appeared in the other cases, substantially adopted the same arguments. Separate arguments advanced by other counsel are also dealt with herein. Since the attack in all the Original Petitions is against the Government Order aforesaid, and the legal arguments advanced were general in nature, it is not necessary to highlight the individual facts in the various Original Petitions. We will take up the facts in O. P. No. 279 of 1986. There are 17 petitioners in this O. P. They are registered (Government) P. W. D. Contractors in category "a". It is stated that the Government have framed rules for registration of contractors and conditions governing registration. Only registered contractors are entitled to submit tenders for contract work. By G. O. (P) 47/pw dated 4-2-1971 (Exhibit p1), Government have prescribed details regarding the forms, security or earnest money deposit, further security to be made by the selected contractor and a certain percentage to be withheld at the time of interim payments, to be released on satisfactory completion of the work. The contractors are classified into four categories as A, B, C and D. The solvency certificate or bank guarantee to be furnished for category 'a' is Rs. 50,000/-, for category 'b' rs. 25,000/-, for category 'c' Rs. 7,500/-and for category 'd' nil. The registration fees for the 4 categories are Rs. 200, Rs. 150, Rs. 100 and Rs. 50/-respectively. With regard to Electrical Contractors there is some modification. The petitioners obtained registration by furnishing solvency certificate or Bank guarantee and are carrying on the profession of Government contractors. The first respondent-State unilaterally revised the fees and charges for taking up works in the P. W. D. , by G. O. (MS) 127/84/pw/f& P dated 12-11-1984 , evidenced by Ext. P2. It resulted in the upward revision in the cost of tender forms, fees for registration of contractor's, quantum of earnest money and security deposit, and insisted cash deposit instead of solvency certificate or bank guarantee for registration and renewal of contractors. The alternations and changes made in Ext. P2, in the conditions and also in the upward revision, in the cost of tender forms, fees for registration etc. , are attacked in these batch of Original Petitions.

(2.) MR. V. M. Kurian, who appeared for the petitioners in op. No. 279 of 1986. attacked Ext. P2 as illegal and arbitrary. It was submitted that the cash deposit is only to improve the receipts of Government. The increase made in the cost of tender forms, registration fees, earnest money and security deposit, are unjustified. The main attack was against the insistence of cash deposit, instead of bank guarantee or solvency certificate, and the enhancement made in the registration fees.

(3.) BRIEFLY, stated, the attack against Ext. P2 by the petitioner's counsel centered round five points. They are. (1) Ext. P2 is illegal and arbitrary. The upward increase in the charges for the tender form, registration fees, earnest money and security deposit as also the insistence of cash deposit is intended to improve the receipts or revenues of the Government. This is unauthorised. (2) Ext. P2 cannot be enforced till the Chief Engineer submits his proposal. (3) Ext. P2 applies only to PWD. Contractors and not to forest Contractors and Abkari Contractors. This is discriminatory. (4) Ext. P2 will apply only for registration and not for renewal and (5) There are vast powers to refuse renewal and the Government need not have gone to the extent of insisting cash deposit for the proper compliance of the works entrusted to the contractors.