HI-TECH ENGINEERING AND CONSTRUCTION Vs. STATE OF TAMIL NADU; MANAGING DIRECTOR,TAMIL NADU SLUM CLEARANCE BOARD; CHIEF ENGINEER, TAMIL NADU SLUM CLEARANCE BOARD

JUDGEMENT

(1.) This writ petition has been filed challenging the correctness of the impugned order passed by the third respondent, The District Collector, Cuddalore District in Lr.No.SCB/T.Cell/17887/D1/09 dated 22.10.2009 and the consequential order of the first respondent in G.O.Ms.No.209, Housing and Urban Development (SC2(1) Department dated 21.09.2010 and to quash the same.

(2.) Mr.R.Gandhi, learned senior counsel appearing for the petitioner has submitted that one Mr.G.M.Kamaluddin was a qualified Class I Contractor in the Public Works Department. The petitioner along with said G.M.Kamaluddin have established a partnership firm under the name and style of M/s.Hi-Tech Engineering and Construction engaged in the business of civil engineering contracts. However, the petitioner individually invested a sum of Rs.10,00,000/- as his share in the partnership business. Since, the said Kamaluddin was having rich experience in the field and as he was a registered Class-I contractor, the petitioner has totally trusted him and given the total functioning of the firm for participating in the tenders and for obtaining the contracts subsequent to the establishment of the firm. The firm had participated in the tender called for by the fourth respondent for construction of 125 houses under Rajiv Gandhi Rehabilitation Packages (RGRP) Scheme at Periyakuppam Village, Cuddalore Taluk. Since, the firm was a lowest bidder, the contract was awarded and for which the contract of agreement was executed and signed by the said Kamaluddin on 31.01.2008. The total value of the contract was Rs.2,49,000/- x 125 totaling to the tune of Rs.3,12,20,743/- out of which 75% work was successfully completed in the month of February 2010 and remaining 25% work, namely, weathering course of tiles, electrical works etc. were to be completed within one month from February, 2010 and the fourth respondent also effected payment to the tune of Rs.2,13,62,745/-.

(3.) It has been further stated that when the matter stood as above, the petitioner's partner G.M.Kamaluddin had on behalf of the firm participated in the tender called for by the second respondent Board for the work of construction of 23 number of permanent houses for Tsunami Vulnerable Areas at Kottakuppam T.P.Phase-II in Villupuram District under RGRP on 07.01.2009. In these circumstances, the fourth respondent issued a show cause notice in Na.Ka.No.Ma.Se.A4/1777/07 dated 23.03.2010 referring a letter dated 9.2.2010 from the third respondent herein under which it is stated that the earnest money deposit Rs.5,00,000/- dated 14.06.2007 drawn on Union Bank of India, Cuddalore Branch, submitted by the firm was forged one and thereby the firm was permanently banned from participating in any tender of Slum Clearance Board and further even in the contract/tender for construction of 125 houses under RGRP at Periakuppam Village, Cuddalore Taluk, the very same irregularity has been committed and on verification as to the genuinity of earnest money deposit (EMD) and fixed security deposit (FSD) was found as forged one and therefore explanation was called for. The petitioner was totally unaware of the same as the said Kamaluddin has only indulged in such a fraud behind his back. However, the petitioner sent a reply dated 25.03.2010 explaining in detail as to how the said Kamaluddin has cheated the petitioner and indulged in such fraud.