HINDUSTAN STEEL WORKS CONSTRUCTION Vs. BANKING OMBUDSMAN

JUDGEMENT

(1.) By means of filing the instant writ petition, the petitioner has prayed for following reliefs:

(2.) Brief facts of the case are that the petitioner-Hindustan Steel Works Constructions (HSCL) is a Public Sector Enterprise, (a subsidiary of NBCC(India) Limited) under the administrative control of Government of India which is involved in the business of turnkey execution of large infrastructure projects in India and abroad. It is contended in this petition that the construction and maintenance of the road i.e. Gandacherra to Kalajhari No. TR-04-121, Link No.L038, Length-6.85 Km. Phase-VIII, District-Dhalai, Block-Dumburnagar was sanctioned under the "Pradhan Mantri Gram Sadak Yojana" (PMGY) under scope of NIT No.65 dtd. 16/4/2012. Accordingly, the said work order was awarded to the respondent no.3 by the petitioner- HSCL followed by a Letter of acceptance dtd. 23/7/2012 for agreement value of Rs.26,47,41,720.00 for the said construction and maintenance for 5 years. Thereafter, the respondent no.3, the Contractor had submitted Bank Guarantee No. 026012ILPER0001 dtd. 31/7/2012 for Rs.66,18,543.00 (Rs.Sixty Six Lakhs Eighteen Thousand Five Hundred and Forty Three only) issued by the Punjab National Bank (Formerly known as United Bank of India) in favour of the petitioner-HSCL for the aforesaid project as Performance Security. But, the respondent no.3 failed to complete the work awarded to him and thus, the disputes arose between the petitioner-HSCL and respondent no.3. It is averred in the petition that the said Bank Guarantee was extended from time to time on the undertaking of the respondent no.3, the Contractor upto 31/7/2014 and further extended upto 30/7/2015, 29/7/2016, 29/7/2017, 29/7/2018 and as per the respondent no.2, it was extended lastly upto 29/7/2019 in favour of the petitioner-HSCL.

(3.) On failure to execute the works, Show Cause Notice dtd. 3/7/2019 was issued by the petitioner-HSCL followed by further Notices dtd. 28/9/2019 and 18/10/2019 upon the respondent no.3, but, having found no response to the said Show Cause Notices, Petitioner-HSCL placed demands to the respondent no.2 for invocation of the Bank Guarantee in question vide letters dtd. 21/9/2019 and 18/11/2019. There was no response of email communication dtd. 21/9/2019 from the respondent no.2 but subsequently, the respondent no.2 sent reply dtd. 22/11/2019 to the petitioner making reference to the email dtd. 21/9/2019 stating that -" .With reference to the above and said letter regarding the invocation of Bank Guarantee No.026012ILPER001 issued in favour of HSCL at the request of Mr. Kajal Chakraborty. We would like to inform you that the said Bank Gurantee cannot be invoked as per "point No.8, para iii" of the Bank Guarantee as the invocation claim was made on 21/9/2019 after expiry of the Guarantee."