THRIMATHY CONTRACTING COMPANY Vs. STATE OF KERALA

JUDGEMENT

(1.) These writ petitions are materially connected in respect of award of contract and consequential imposition of guarantee to be provided by the successful bidders. Therefore, I heard them together and propose to pass a common judgment.

(2.) Petitioner in W.P.(C) . No. 41987/2017 is conferred with a work of improvements to KallamthoduKoolimadu Road and letter of acceptance dated 13.12017 is issued. Certain conditions are prescribed as a prelude to the execution of the agreement and one of which is to provide 50% of the performance guarantee by way of Treasury Fixed Deposit. So far as W.P.(C) .No. 41988/2017 is concerned, the same is in respect of a work awarded to the petitioner therein for improvements to Thamarassery-Varattiakkal Road in Kozhikode District. Therein also as per Ext.P1 letter of acceptance, financial stipulations and guarantee stipulations are prescribed by which the petitioner is liable to provide 50% of the performance guarantee by way of Treasury Fixed Deposit.

(3.) According to the petitioners, there is no rhyme or reason for insisting for Treasury Fixed Deposit and the petitioners are prepared to provide bank guarantee for the 50% of the performance guarantee in lieu of Treasury Fixed Deposit. The issue with respect to providing Treasury Fixed Deposit is considered by a learned Single Judge of this Court in Joseph Velupuzhakkal v. State of Kerala and Others, 2017 5 KHC 406 and held that the situation will suffice, if the petitioner offers bank guarantee for the 50% of the performance guarantee in lieu of Treasury Fixed Deposit. However learned counsel appearing for the respondents pointed out that the State has preferred appeal against the said judgment of the learned Single Judge, which is pending consideration.