JUDGMENT : 1. The petitioner is an A Class Contractor in the Public Works Department. The respondents had invited bids for the work, namely KIIFB Work 2016-2017 improvements to Udumbanchola Chithirapuram Road (Km 0/000 to 45/880) as per the Notice Inviting Tender dated 17.08.2019. 2. As the petitioner was the lowest tenderer in the above tender proceedings, the 2 nd respondent issued Ext.P2 letter accepting tender in respect of the above work for an amount of Rs. 139,90,01,074/-. Thereafter, Ext.P4 contract was entered between the petitioner and the respondents. As per Part I of the Instructions to the bidders which form part of the Notice Inviting Tender, the successful bidder will have to submit Performance Guarantee before executing the agreement. In compliance to the same, the petitioner submitted Ext.P4 Bank Guarantee and Exts.P5 and P6 Treasury Fixed Deposits. Thereafter, the petitioner successfully completed the construction of the work and the 1 st respondent issued Ext.P8 Completion Certificate to the petitioner. 3. As per Clause 7.10 of the instructions to the bidders, NIT, half of the Performance Guarantee in the form of Treasury Deposit can be released upon submission of an Indemnity Bond of equal amount by the contractor indemnifying the employer any loss on account of this after the virtual completion of the work. 4. Though the petitioner submitted Exts.P9 and P10, till date no action has been taken by the respondents for releasing half of the Performance Guarantee in the form of Treasury Deposits relying on Exts.P11 and P12 Government Orders. Those Government Orders have no relevance to the work executed by the petitioner as nowhere in the NIT, tender conditions or the agreement or special conditions of contract, it has been specified about the Government Orders, contends the petitioner. 5. Standing Counsel entered appearance on behalf of the respondents and resisted the writ petition. On behalf of the respondents, it is submitted that the successful bidder will have to submit Performance Guarantee before executing the agreement and the Performance Security Deposit which is to be recovered from the running bills. The Performance Guarantee to be submitted for executing agreement shall be 5% of the contract amount and performance security deposit shall be deducted at 2.5% from the running bills. The Performance Guarantee to be submitted for executing agreement shall be 5% of the contract amount and performance security deposit shall be deducted at 2.5% from the running bills. The relevant clauses dealing with the Performance Guarantee and the Performance Security Deposit are explained in paragraph 7 and sub paragraph of Part I Instructions to the Bidders of SBD. 6. In clause 7.10, it is stated that the Performance Bank Guarantee submitted in the form of Bank Guarantee will be returned to the contractor without any interest after 28 days after the satisfactory completion of the Defects Liability Period (DLP). Half of Performance Guarantee in the form of Treasury Fixed Deposit can be released upon submission of an Indemnity Bond of equal amount by the contractor, indemnifying the employer any loss on account of this after the virtual completion of the work. The balance half of Performance Guarantee in the form of Treasury Fixed Deposit will be released after the satisfactory completion of defect liability period. As per the Letter of Acceptance, the petitioner has submitted Bank Guarantee for an amount of Rs. 3,49,75,050/- and Treasury Deposit for an amount of Rs. 3.5 Crores. 7. Standing Counsel further submitted that Ext.P9 request of the petitioner dated 30.10.2024 for releasing the Performance Guarantee in the form of Treasury Deposit after executing the Indemnity Bond cannot be admitted. Along with the SBD clause, the Government Orders issued from time to time are also applicable in the case of execution of works. In light of the Government Orders marked as Exts.P11 and P12, the security deposit cannot be released. 8. It is further submitted that the Security Deposit submitted in the form of Treasury Deposit cannot be released by the 2 nd respondent, in the light of the guidelines explained in Government Orders G.O. (P) No.429/15/Fin dated 28.09.2015 and G.O. (P) No.168/2018/Fin dated 02.11.2018 in which it is clearly ordered that "the Performance Guarantee, the amount collected at the time of executing the contract agreement will be 5% of the contractor value (agreed PAC), and this deposit will be retained till the expiry of Defects Liability Period (DLP)". It is clearly mentioned in notice inviting Tender that all subsequent G.O.'s connected to tender and revision in the rate of taxes are applicable to this tender. It is clearly mentioned in notice inviting Tender that all subsequent G.O.'s connected to tender and revision in the rate of taxes are applicable to this tender. Also, the Chief Engineer PWD, Administration, the Administrative Head of PWD, as per letter dated 30.03.2023 has issued a clarification that as per Government Order security deposit needs to be retained till the expiry of Defect Liability Period. Furthermore, based on the request of the petitioner, a clarification was sought from Government as per letter No.4400/Estt/Fin/2024 dated 27.11.2024 whether half of security in the form of Treasury saving to be released on the strength of an Indemnity Bond. 9. I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the respondents. 10. The contention of the petitioner is that the petitioner is entitled to refund of half of the Performance Guarantee in the form of Treasury Fixed Deposit as the petitioner has already completed the work. The petitioner states his claim on the basis of conditions of Performance Guarantee. 11. The contention of the Standing Counsel is that since as per Exts.P11 and P12 Government Orders, the Performance Guarantee can be released only after the period of defect liability and the defect liability period in respect of the work undertaken by the petitioner is yet to get over, the petitioner cannot claim the amounts now. 12. The pleading would indicate that Clause 7 of the General Conditions of Contract at sub Clause 10 provides that the Performance Bank Guarantee submitted in the form of Bank Guarantee will be returned to the contractor without any interest after 28 days after the satisfactory completion of defect liability period. Half of Performance Guarantee in the form of Treasury Fixed Deposit can be released upon submission of an indemnity bond of equal amount by the Contractor indemnifying the Employer any loss on account of this after the virtual completion of Work. What is sought for by the petitioner at this stage is only return of half of the Performance Guarantee in the form of Treasury Fixed Deposit. This being a part of the General Conditions of Contract, I am of the view that the 2 nd respondent has to honour the said Clause. 13. What is sought for by the petitioner at this stage is only return of half of the Performance Guarantee in the form of Treasury Fixed Deposit. This being a part of the General Conditions of Contract, I am of the view that the 2 nd respondent has to honour the said Clause. 13. In the circumstances, the writ petition is disposed of directing the respondents to release half of the Performance Guarantee in the form of Treasury Fixed Deposit to the petitioner on the petitioner executing Indemnity Bond of equal amount. This shall be done within a period of one month.