CHAKRA DHAR CONSTRUCTION Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) This petition has been filed by the petitioner M/s Chakra Dhar Construction, a Govt. Contractor through its proprietor under Art 226 of the Constitution of India against the inaction on the part of the respondents to release the bank guarantee/security deposit of Rs.41,71,838/- during the period of its validity.

(2.) The case of the petitioner is that it had entered into an agreement with the respondents Narmada Vally Development Authority on 29.03.2001 for construction of E/W of Indra Sagar Pariyojna Main Canal Group No. ME(B)RD 27.285 KM to 29.419 KM. According to the petitioner, the work was also completed, however, as there was some measurement dispute between the parties pursuant to which contract was rescinded by the respondent on 5.1.2004, and subsequent to which the same was again reallocated to a third party and the cost incurred in the aforesaid process was sought to be recovered from the present petitioner as debitable amount. Hence, a case before M.P. Arbitration Tribunal was also filed by the State which was registered as case No. 28/2007 which came to be dismissed by the Tribunal vide its order dated 31.01.2009 on the ground that no demand notice was issued by the respondent for the recovery of debitable amount. This order was also challenged by the respondent in Arbitration Revision No. 14/2009 under Section 19 of the M.P. Madhyastam Adthikaran Adhiniyam, 1983 was also dismissed by the Division Bench of this Court vide order dated 20.09.2012 confirming the order passed by the Tribunal.

(3.) After passing of the aforesaid order by the Division Bench, the petitioner herein sought to release the Bank Guarantee submitted by them at the time of execution of the Agreement, but as the same was not responded to by the respondents, hence this petition against the inaction of the respondent to release the security deposit of Rs.41,71,838/-.