MECON LIMITED Vs. GOVERNMENT OF TAMIL NADU

JUDGEMENT

(1.) This Writ Petition has been filed by the petitioner for a direction directing the respondents to permit the petitioner to raise an invoice for the work done under the contract agreement dtd. 18/12/2019 and disburse the payments which are due for the completed services.

(2.) The petitioner is a public sector company undertaking under the Government of India. It is a frontline engineering, consultancy and contracting organization, offering a full range of services required for setting up projects from concept to commissioning. While being so, the respondents were entrusted with the development of Water Supply and Sewerage facilities in the State of Tamil Nadu, except in the Chennai Metropolitan Development areas. The petitioner was being the lowest bidder in the auction, the respondents had accepted the petitioner as the qualified tender and issued a work order dtd. 15/11/2019 and the contract agreement was signed on 18/12/2019. As per the agreement, the consultancy services to conduct a demand study, pre-feasibility studies including environmental feasibility, preparation of a detailed project report, detailed engineering and bid documents for the Installation of 4.00 MLD capacity containerized sea water reverse osmosis desalination plant at Narippaiyur in Ramanathapuram District including the operation and maintenance of the plant and allied units for a period of 5 years from the date of installation. The total value of the contract was 1.16 crores. The completion of the project was 3 months from the date of the agreement. The payment details as per the contract agreement are as follows:

(3.) Accordingly, the inception report was submitted to the respondents dtd. 19/12/2020 followed by the interim report dtd. 18/2/2020. As per Clause No.4.4 of the contract agreement, the Review Committee has to furnish necessary comments within a period of 7 days from the date of submission of the report and acceptance of the final report within 10 days. The petitioner also submitted reminders dtd. 22/1/2020 and 18/2/2020. The petitioner was advised by the notices dtd. 4/3/2020 and 9/3/2020 to obtain Coastal Regulation Zone clearance before finalization of the DPR and bid document. Thereafter, the petitioner submitted a revised inception report. The Review Committee submitted comments on the inception and interim report during COVID-19. Therefore, the petitioner requested the respondents to extend the time of the contract till 30/12/2020. It was granted on 6/7/2020 valid up to 30/12/2020 and further extension was also granted on 17/3/2021 up to 30/9/2021 and on 12/4/2022 valid up to 30/9/2022. The petitioner submitted a detailed project report. Subsequently, after the completion of environmental studies, the reports were prepared and submitted to The Tamil Nadu Pollution Control Board, Ramanathapuram for Coastal Regulation Zone clearance on 28/9/2022. While being so, by the communication dtd. 17/11/2022, the respondents suspended the project citing administrative reasons. Further, by the communication dtd. 17/8/2023, the entire contract itself was closed by the State Level Technical Committee by its meeting dtd. 3/11/2022 for the preparation of a new multi-Village scheme for Ramanathapuram District with the river Cauvery as source by including all the 117 rural habitations in Kamuthi Union of Ramanathapuram District.