SOUTHERN DREDGING COMPANY(P) LIMITED Vs. SECRETARY TO GOVERNMENT, COSTAL SHIPPING & INLAND NAVIGATION (A) DEPARTMENT AND ANOTHER

JUDGEMENT

(1.) This writ petition is filed by the petitioner seeking to quash Ext.P14 communication issued by the 2nd respondent dated 19.09.2015, whereby the work awarded to the petitioner for dredging in respect of "Fishing Harbour, Kayamkulam" is terminated at the risk and cost of the petitioner. Material facts for the disposal of the writ petition are as follows:

(2.) Sealed competitive tenders from eligible tenderers were invited by the 2nd respondent for execution of the work "Kayamkulam Fishing Harbour - Maintenance Dredging" with notified time of completion of 8 months. Among the tenders received, the tender offered by the petitioner was the lowest, which was 17.31% below estimate rate. Selection notice was issued dated 011.2012 and the agreement was executed on 23.11.2012 with the petitioner. The site for the work was taken over by the petitioner on 01.1201 As per the agreed rate of progress forming part of the mutually agreed conditions of contract, the whole work is to be completed within a period of 8 months. The amount of contract as per the agreement was Rs.1, 09, 21, 507/- only. The work as per the agreement should have been completed in all respects by 31.07.2013.

(3.) It was noticed by the 2nd respondent that the contractor failed to complete the work within this period and requested to extend the period of completion of work, which was agreed up to 31.12.2013, by proceedings dated 29.10.2013, without imposing any fine. But the contractor could not complete the work within the extended period also, however, submitted another application for extension of time up to 31.08.2014. In the meantime, petitioner stopped the work at site and did not resume the work even after repeated instructions by the Executive Engineer. A final notice was issued on 14.02.2014 and show cause notice was issued on 04.02014.