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2021 DIGILAW 300 (KER)

Serms Infrastructure Pvt. Ltd v. State Of Kerala

2021-03-17

P.V.ASHA

body2021
JUDGMENT : Petitioner, who is a Contractor, had undertaken the work of RIDF-XIX Construction of Bridge at Keezharoorkadu across Neyyar Riverin Thiruvananthapuram District. Petitioner seeks the following reliefs: i) Issue a writ of mandamus or writ of similar nature or order or direction commanding the respondents to disburse the retention amount of Rs.14,52,336/-with respect to the works of NABARD-RIDF-XIX construction of bridge at Keezharaoorkadavu across Neyyar River in Thiruvananthapuram District forthwith ii) To issue a writ of mandamus or writ of similar nature or order or direction commanding the respondents to pay the interest at the rate of 18% of the amount due to the petitioner forthwith; iii) Issue such other writ order or direction as this Hon'ble Court may deem fit and proper in the interest of justice. 2. It is stated that the final bill amount has already been paid. The work was completed on 30.11.2019. 3. Learned Standing Counsel for the Kerala State Construction Corporation has filed a statement. According to them Government entrusted the work to the 5th respondent and the 5th respondent entrusted the work to the petitioner as his Sub Contractor. An agreement was executed between petitioner and 5th respondent on 10.08.2015. The 5th respondent has stated that the work was satisfactorily completed on 29.11.2019; a sum of Rs.11,46,800/-was deducted from the 1st and part bill as additional performance security deposit; in addition to that a sum of Rs.19,30,354/-was deducted towards additional security deposit from the part bills and another sum of Rs.4,00,000/-was deducted towards retention amount from 8th and part bill. The 5th respondent further stated that as per Ann.R5(a) and (b) orders the Corporation is exempted from payment of security deposit and retention amount as well as EMD and that amount which has been retained is liable to be disbursed to the Contractor after completion of the work and after the settlement of final bill. It is stated that the 5th respondent has released the payment due to the petitioner except a sum of Rs.14,52,336/-and that the same can be released only on receipt of the same from Government-respondents 1 to 4. 4. The 3rd respondent has filed a counter affidavit, according to which there is no privity of contract between petitioner and the respondents 1 to 4. 4. The 3rd respondent has filed a counter affidavit, according to which there is no privity of contract between petitioner and the respondents 1 to 4. It is stated that as per Ext.R3(a) selection notice the 5th respondent was awarded the work of construction of bridge across Neyyar River under the NABARD as per G.O. dated 16.12.2014. The 3rd respondent further stated that the Contractor-the 5th respondent did not complete the work within the agreed period. It is stated that as per Ext.R3(b) agreement dated 10.08.2015, it is seen that the deed was executed between the Construction Corporation and Superintending Engineer, Roads and Bridges, South Circle, Thiruvananthapuram. It is stated that the amount can be released to the Contractor only after getting acceptance of quality certificate from the Deputy Chief Engineer PWD (Vigilance) Thiruvananthapuram. Several recoveries to be made are also stated in paragraphs 13 and 14. According to the 3rd respondent only the additional security deposit, performance security deposit and retention amount are due to the Contractor which can be released only after the completion of defect liability period of 36 months from the date of completion and that can be released only after acceptance of report from Deputy Chief Engineer PWD (Vigilance), Thiruvananthapuram. 5. Regarding the liability to make the payment there is serious dispute between the respondents 1 to 3 on one side and respondents 4 and 5 on the either side. 6. It is seen that there is no dispute with respect to the completion of work. There is also no dispute that 5th respondent entered into Ext.R3(a) agreement with the Government and 5th respondent has in turn entered into another agreement with the petitioner. 7. Therefore the 5th respondent shall see that the payment is made to the petitioner in accordance with the conditions in the agreement executed between the petitioner and the 5th respondent at the earliest. 8. The learned Standing Counsel for the 5th respondent points out that various Government Orders are in force, based on which work has been executed hither to and payment was also being made without raising any objections. It is also pointed out that the work carried out by the petitioner was being supervised by the Engineers under the second respondent. 8. The learned Standing Counsel for the 5th respondent points out that various Government Orders are in force, based on which work has been executed hither to and payment was also being made without raising any objections. It is also pointed out that the work carried out by the petitioner was being supervised by the Engineers under the second respondent. In these circumstances as there is dispute between the 5th respondent and respondents 1 to 4, there shall be a direction to 1st respondent to convene a meeting with respondents 5 and 6 and to resolve the dispute between them at the earliest, at any rate within a period of 'six weeks' from the date of receipt of a copy of the judgment. On resolving the dispute the amount due to the petitioner shall also be paid at the earliest point of time. The writ petition is disposed of accordingly.