Kerala High Court
M/S. Strefa Projects Private Ltd vs State Of Kerala on 2 August, 2024
Author: V.G.Arun
Bench: V.G.Arun
2024:KER:61477
WP(C) NO. 24711 OF 2024
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE V.G.ARUN
FRIDAY, THE 2ND DAY OF AUGUST 2024 / 11TH SRAVANA, 1946
WP(C) NO. 24711 OF 2024
PETITIONER/S:
M/S. STREFA PROJECTS PRIVATE LTD
PLOT NO. 34, EASWARAIAH ENCLAVE, DAMMAIGUDA,
HYDERABAD, TELANGANA STATE, REPRESENTED BY ITS,
DIRECTOR, P. CHANDRABABU, S/O. P, DASTAGIRI., PIN
- 500062
BY ADVS.
GEORGE MATHEW
SUNIL KUMAR A.G
MATHEW K.T.
GEORGE K.V.
STEPHY K REGI
MEDHA B.S.
RESPONDENT/S:
1 STATE OF KERALA
REPRESENTED BY ITS SECRETARY, WATER RESOURCES
DEPARTMENT, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
2 KERALA WATER AUTHORITY
REPRESENTED BY ITS MANAGING DIRECTOR, HEAD
OFFICE, JALA BHAVAN, VELLAYAMBALAM,
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WP(C) NO. 24711 OF 2024
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THIRUVANANTHAPURAM, PIN - 695033
3 THE SUPERINTENDING ENGINEER
OFFICE OF THE SUPERINTENDING ENGINEER, P.H.
CIRCLE, KERALA WATER AUTHORITY, KOLLAM, PIN -
688001
4 THE EXECUTIVE ENGINEER
WATER SUPPLY DIVISION, KERALA WATER AUTHORITY,
KOLLAM DISTRICT, PIN - 691001
SMT. DEEPA NARAYANAN, SR. GP.
SRI. P.M. JOHNY SC FOR KWA.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 02.08.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) NO. 24711 OF 2024
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JUDGMENT
The petitioner, a private limited company, has been
awarded 8 works by the Kerala Water Authority, evidenced by
Exts.P1 series. The letters of acceptance requires the petitioner to
furnish 50% of the performance guarantee in the form of Treasury
Fixed Deposit and the balance in the form of bank guarantee.
Accordingly, performance guarantees were furnished and the
agreements executed. Thereafter, the work commenced and has
progressed to a substantial extent. The works have now come to a
standstill, since road cutting permits have not been obtained from
the competent authorities. According to the petitioner, a sum of
Rs.3,51,95,532/- is due towards the works executed. The non-
payment of the pending bill amount and the delay in completion of
the work is causing substantial prejudice and the other works are
also getting affected. The petitioner, therefore, requested the
respondents to either release the amounts due under the pending
bills or permit substitution of Ext.P2 series Treasury
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WP(C) NO. 24711 OF 2024
Deposits with bank guarantee for equivalent amounts. The
respondents having failed to accede to either of the requests, this
writ petition is filed.
2. Heard leaned Counsel for the petitioner and the learned
Standing Counsel for the Kerala Water Authority.
3. Learned Counsel for the petitioner relied on Ext.P3
judgment to contend that, under similar circumstances, this Court
has permitted substitution of the Treasury Deposit with bank
guarantee.
4. Learned Standing Counsel submitted that the permission
in Ext.P3 was granted subject to the petitioner therein undertaking
to offer 50% of the performance guarantee in cash, within 7 days of
the Water Authority intimating the contractor about the permission
obtained for road cutting. The Standing Counsel fairly submitted
that, if a written request for substitution is submitted by the
petitioner, the same will be considered positively by the
respondents.
In view of the above submissions, the writ petition is
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WP(C) NO. 24711 OF 2024
disposed of permitting the petitioner to submit a written request for
substitution of Ext.P2 series Treasury Deposits with bank
guarantees, with an undertaking that the substituted bank
guarantees will be replaced with cash within seven days of the Water
Authority intimating the petitioner about receipt of road cutting
permits or removal of other obstructions for continuing the works.
On the petitioner submitting the written request, the same shall be
considered and acceded to by the competent among the respondents
within ten days.
Sd/-
V.G.ARUN
JUDGE
uu
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WP(C) NO. 24711 OF 2024
APPENDIX OF WP(C) 24711/2024
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF SELECTION NOTICE NO.
KWA/PHC/Q/1483/D3/2022 DTD. 13.06.2022
ISSUED BY 3RD RESPONDENT IN RESPECT OF
SL.NO.1 WORK
Exhibit P1 (a) TRUE COPY OF SELECTION NOTICE NO.
KWA/PHC/Q/1472/ D3/2022 DTD. 18.05.2022
ISSUED BY 3RD RESPONDENT IN RESPECT OF
SL.NO.2 WORK
Exhibit P1 (b) TRUE COPY OF SELECTION NOTICE NO.
KWA/PHC/Q/1475/D3/2022 DTD. 18.05.2022
ISSUED BY 3RD RESPONDENT IN RESPECT OF
SL.NO.3 WORK
Exhibit P1 (c) TRUE COPY OF SELECTION NOTICE NO.
KWA/PHC/Q/1471/D3/2022 DTD. 07.07.2022
ISSUED BY 3RD RESPONDENT IN RESPECT OF
SL.NO.4 WORK
Exhibit P1 (d) TRUE COPY OF SELECTION NOTICE NO.
KWA/PHC/KLM/D2/ 447/2021 DTD.
03.08.2022 ISSUED BY 3RD RESPONDENT IS
IN RESPECT OF SL.NO.5 WORK
Exhibit P1 (e) TRUE COPY OF LETTER OF ACCEPTANCE DTD.
NIL ISSUED BY 3RD RESPONDENT IN RESPECT
OF SL.NO.6 WORK
Exhibit P1 (f) TRUE COPY OF LETTER OF ACCEPTANCE DTD.
07.07.2023 ISSUED BY 3RD RESPONDENT IN
RESPECT OF SL.NO.7 WORK
Exhibit P1(g) TRUE COPY OF LETTER OF ACCEPTANCE DTD.
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WP(C) NO. 24711 OF 2024
02.08.2023 ISSUED BY 3RD RESPONDENT IN
RESPECT OF SL.NO.8 WORK
Exhibit P2 TRUE COPY OF TREASURY SAVINGS BANK TERM
DEPOSIT CERTIFICATE NO. JL1434685
DTD.28.06.2022 IN RESPECT OF EXT.P1
Exhibit P2 (a) TRUE COPY OF TREASURY SAVINGS BANK TERM
DEPOSIT CERTIFICATE NO. JL1434585
DTD.17.06.2022 IN RESPECT OF EXT.P1(A)
Exhibit P2 (b) TRUE COPY OF TREASURY SAVINGS BANK TERM
DEPOSIT CERTIFICATE NO. JL1434587
DTD.17.06.2022 IN RESPECT OF EXT.P1(B)
Exhibit P2 (c) TRUE COPY OF TREASURY SAVINGS BANK TERM
DEPOSIT CERTIFICATE NO. JL1434941
DTD.25.07.2022 IN RESPECT OF EXT.P1(C)
Exhibit P2 (d) TRUE COPY OF TREASURY SAVINGS BANK TERM
DEPOSIT CERTIFICATE NO. JL1435230
DTD.24.08.2022 IN RESPECT OF EXT.P1(D)
Exhibit P2 (e) TRUE COPY OF TREASURY SAVINGS BANK TERM
DEPOSIT CERTIFICATE NO. JL1400157
DTD.30.03.2023 IN RESPECT OF EXT.P1(E)
Exhibit P2 (f) TRUE COPY OF TREASURY SAVINGS BANK TERM
DEPOSIT CERTIFICATES DTD.09.08.2023 IN
RESPECT OF EXT.P1(F)
Exhibit P2 (g) TRUE COPY OF TREASURY SAVINGS BANK TERM
DEPOSIT CERTIFICATE NO. JL0769285
DTD.03.10.2023 IN RESPECT OF EXT.P1(G)
Exhibit P3 TRUE COPY OF JUDGMENT DTD. 10.11.2023
IN W.P. (C). NO. 37371 OF 2023
