1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 09.03.2011 CORAM: THE HONOURABLE MR.JUSTICE B.RAJENDRAN W.P.(MD)No.754 of 2011 and M.P.(MD)Nos.1 and 2 of 2011 M/s.IVRCL Project Limited, Rep. by its Joint General Manager, Sri. S.Shanmugam, Chennai Regional Office, No.30-A, South Phase, 6th Cross Road, Thiru.Vi.Ka. Industrial Estate, Guindy, Chennai - 600 032. : Petitioner Vs. 1.The Executive Engineer, TWAD Board, Urban Project Division, Nagercoil. 2.Tamil Nadu Water Supply and Drainage Board, (TWAD Board), Rep. by its Chairman and Managing Director, Head Office: 31, Kamaraj Salai, Chepauk, Chennai - 600 005. 3.Indian Overseas Bank, Rep. by Branch Manager, R.P.Road, Secundarabad - 500 003. : Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus calling for the proceedings in Letter No.FBG/79/Coastal/Supdt/2010, dated 27.12.2010 on the file of the first respondent, quashing the same and directing the first and second respondents not to enforce the Bank Guarantees of the value of Rs.69,12,000/- furnished by the petitioner in respect of the contract as per Work Order Letter No.F98 Coastal/SD04/2007 dated 08.09.2007 relating to implementation of Kanyakumari District for providing CWSS to Tsunami 79 Coastal habitations with bulk provision to SVPS of 19 Wayside Coastal habitations including maintenance and render justice. For Petitioner : M/s.P.Radhakrishnan For Respondents : Mr.M.Ajmal Khan 1 and 2 For Respondent 3: No appearnce. ORDER The Writ Petition has been filed by the Contractor. Originally, as per B.P.Ms.No.80 dated 22.08.2010, 5% of the amount will be withheld as performance guarantee. Later on, it was withdrawn stating that if an irrevocable bank guarantee is issued, the amount could be paid back. Subsequently, the present B.P.Ms.No.14 dated https://hcservices.ecourts.gov.in/hcservices/ 2 25.02.2011 has been issued. Under which, the original B.P.Ms.No.80 dated 22.08.2008 will also be applicable upto 25.02.2011. The petitioners come within the purview of the present B.P.Ms.No.14 dated 25.02.2011. 2. The learned counsel appearing for the respondent Board brought to the notice of this Court, the Board proceedings No.B.P.Ms.No.14 (COM Wing), dated 25.02.2011, under which the Board has given approval to accept the irrevocable Bank Guarantee in a prescribed form towards release of Security Deposit and Retention Money for all works till the warranty period for the particular works based on the bank guarantee after the issuance of B.P.Ms.No.80, dated 22.08.2008, till the date of issuance of proceedings. Therefore, he fairly submits that the impugned order is no more valid. 3. The learned counsel for the petitioner also submits that in view of the present Board's proceedings dated 25.02.2011, the impugned order for recovery of 5% as per the earlier Board's proceedings is no longer effective and therefore, the impugned order has to be quashed. 4. Learned counsel for the respondents fairly submitted that this is the case squarely applicable as per the B.P.Ms.No.14 dated 25.02.2011 and therefore, the impugned orders have got necessarily to be set aside. In fact, the respondents would also contend that the petitioners have already given irrevocable bank guarantees. 5. Recording the said submissions, the impugned order is set aside and bank guarantee as given by the petitioner is also recorded. In the result, the writ petition is allowed. Consequently, connected miscellaneous petitions are also closed. No costs. Sd/- Assistant Registrar (P&A) /True Copy/ Sub Assistant Registrar To 1.The Executive Engineer,TWAD Board, Urban Project Division, Nagercoil. 2.The Chairman and Managing Director, Tamil Nadu Water Supply and Drainage Board, (TWAD Board), Head Office: 31, Kamaraj Salai, Chepauk, Chennai - 600 005. 3.The Branch Manager, Indian Overseas Bank, R.P.Road, Secundarabad - 500 003. +1cc to Mr.P.Radhakrishnan, Advocate Sr.No.5659 +1cc to Mr.M.Ajmal Khan, Advocate Sr.No.5687 srm/ (akm/20.04.11) /2p-6c/ W.P.(MD)No.754 of 2011 https://hcservices.ecourts.gov.in/hcservices/