TRANSCONS CORPORATION Vs. STATE OF KERALA

JUDGEMENT

(1.) Petitioner is a registered partnership firm and it is an A- class Public Works Department contractor. Petitioner has been awarded the tender for construction of new building for the Government Industrial Training Institute, Eriyad. The tender was accepted for the quoted rate of Rs.1,11,95,363.343/-. By Ext.P1 letter issued by the 2nd respondent, petitioner was directed to produce security deposit for an amount of Rs.5,59,800/- and performance guarantee of Rs.10,36,900/- from a nationalized or scheduled Bank. It is the contention of the petitioner that, for and on behalf of the firm, the Managing Partner executed the works related to construction of Fire and Rescue Station, Eloor, Ernakulam. Ext.P2 is the completion certificate of that work. Out of the four part bills submitted for the aforesaid completed work, only two bills have been paid. The 3rd and 4th part bills amount, which remains unpaid even now comes to Rs.27,21,612/- and Rs.65,53,115/- respectively, and the same is admitted in Ext.P3 letter sent by the 3rd respondent to the 2nd respondent.

(2.) That apart, it is submitted by the petitioner that, as per Ext.P4 Circular issued by the Government and Ext.P5 judgment rendered by this Court, amounts due to the contractors under completed works can be adjusted towards security deposit for new contracts awarded. Even though petitioner submitted Ext.P6 representation to adjust the amount due from the Department, evident from Ext.P3, towards the security deposit for the work awarded as per Ext.P1, the same is not given a consideration by the respondents, and is insisting for production of the financial stipulations contained under Ext.P1.

(3.) Second respondent has filed a counter affidavit basically contending that by virtue of revised P.W.D Manual, all former circulars, including Ext.P4 has become inoperative. As per Clause 2009.6 and 7 of the revised PWD Manual, which was revised as per Government Order dated 01.02.2012, the procedure to be followed by the agreement authority has been prescribed, evident from Exts.R2(b) and R2(c) Government Order. Ext.R2(b) has been subsequently revised by Ext.R2(a) to the limited extent as stated therein.