Chicago Constructions ... vs Kerala Water Authority
2021 Latest Caselaw 750 Ker

         IN THE HIGH COURT OF KERALA AT ERNAKULAM

                            PRESENT

              THE HONOURABLE MR.JUSTICE N.NAGARESH

  FRIDAY, THE 08TH DAY OF JANUARY 2021/18TH POUSHA, 1942

                    WP(C).No.3766 OF 2020(U)


PETITIONER:

              CHICAGO CONSTRUCTIONS INTERNATIONAL (P) LTD,
              TC 22/2703, CHICAGO LANE,
              KOCHAR ROAD, SASTHAMANGALAM,
              THIRUVANANTHAPURAM-695010,
              REP. BY THE MANAGING DIRECTOR,
              MOHANAKUMAR S.

              BY ADVS.
              SRI.N.KRISHNA PRASAD
              SHRI.B.S.SANKAR LAL
              SRI.DEEPAK VARUGHUESE MATHEW
              SMT.GEETHU SUSAN VARGHESE

RESPONDENTS:

     1        KERALA WATER AUTHORITY,
              JALABHAVAN, THIRUVANANTHAPURAM-695033,
              REPRESENTED BY ITS MANAGING DIRECTOR.

     2        THE MANAGING DIRECTOR,
              KERALA WATER AUTHORITY,
              JALABHAVAN,
              THIRUVANANTHAPURAM-695033.

     3        THE SUPERINTENDING ENGINEER,
              PH CIRCLE, KERALA WATER AUTHORITY,
              JALABHAVAN,
              THIRUVANANTHAPURAM-695033.

     4        THE EXECUTIVE ENGINEER,
              PROJECT DIVISION, KERALA WATER AUTHORITY,
              JALABHAVAN, THIRUVANANTHAPURAM-695033.

     5        THE CHIEF EXECUTIVE OFFICER,
              TECHNOPARK, ELECTRONIC TECHNOLOGY PARK KERALA,
              TECHNOPARK CAMPUS,
              THIRUVANANTHAPURAM-695033.
 WP(C) No.3766/2020
                             :2 :


              R1-4 BY ADV. SMT.MARY BENJEMIN, SC
              R1-4 BY SRI.P.BENJAMIN PAUL, SC, KERALA WATER
              AUTHORITY

     THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 08.01.2021, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 WP(C) No.3766/2020
                                     :3 :




                             JUDGMENT

~~~~~~~~~

Dated this the 8th day of January, 2021

The petitioner, a construction Company, seeks to

direct respondents 1 to 5 to release the original of the Bank

Guarantee along with the Security Deposit of ₹3 lakhs

submitted by the petitioner in connection with the work

captioned "Water Supply Scheme to Technocity at Pallipuram-

Design, Construction and commissioning or 9.2 MLD capacity

Water Plant at Avanavanchery".

2. The fact that the petitioner-Company has

completed their work under the agreement with the

respondents, is not in dispute. The Bank Guarantee and

Security Deposit of the petitioner were retained by the

respondents as the project was not commissioned.

Subsequently, pursuant to an interim order of this Court, the

Security Deposit has been released to the petitioner, though WP(C) No.3766/2020

the project is yet to be commissioned.

3. The learned Standing Counsel for the respondents

would submit that Bank Guarantee can be released only after

commissioning of the project. The project in question has not

been commissioned. On a question as to the reason for non-

commissioning of the project, the learned Standing Counsel

for the respondents submitted that other components of the

project work have not been completed by the respective

contractors and that is the reason why the project could not be

commissioned.

4. Heard.

5. The fact that the petitioner has completed their

work is not in dispute. Other contractors who have to do other

component works which are integral to the project, perhaps

have not completed their part of the work. However, that

cannot be a reason for the respondents to indefinitely delay

the release of Bank Guarantee to the petitioner. At the same

time, the interest of the respondents will also have to be

protected.

WP(C) No.3766/2020

In such circumstances, the writ petition is disposed

of directing the respondents that if the petitioner executes an

ordinary bond in place of the Bank Guarantee, the

respondents shall release the Bank Guarantee within a period

of one month, to the petitioner.

Sd/-

N. NAGARESH, JUDGE

aks/08.01.2021 WP(C) No.3766/2020

APPENDIX PETITIONER'S EXHIBITS:

EXHIBIT P1 TRUE COPY OF THE SELECTION NOTICE ISSUED BY THE THIRD RESPONDENT.

EXHIBIT P2 TRUE COPY OF THE COMPLETION CERTIFICATE DATED 11.6.2014.

EXHIBIT P3 TRUE COPY OF THE RELEVANT EXTRACTS OF THE NOTICE INVITING TENDER (VOLUME I).

EXHIBIT P4 TRUE COPY OF THE MINUTES OF THE MEETING DATED 12.4.2019.

EXHIBIT P5           TRUE COPY OF THE COMMUNICATION OF THE
                     FIFTH   RESPONDENT    TO    THE THIRD
                     RESPONDENT DATED 31.5.2019.

EXHIBIT P6           TRUE COPY OF THE COMMUNICATION DATED
                     30.4.2019   ISSUED    BY THE   THIRD

RESPONDENT TO THE DGM (PROJECTS) OF THE FIFTH RESPONDENT.

EXHIBIT P7 TRUE COPY OF THE REPRESENTATION DATED 13.1.2020.

EXHIBIT P8 TRUE COPY OF THE BANK GUARANTEE DATED 17.3.2018 SUBMITTED BY THE PETITIONER

EXHIBIT P9 TRUE COPY OF THE COMMUNICATION DATED 15.9.2020 ISSUED BY THE FOURTH RESPONDENT EXHIBIT P10 TRUE COPY OF THE COMMUNICATION DATED 03.12.2020 ISSUED TO THE PETITIONER BY THE FOURTH RESPONDENT.

SR