IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC THURSDAY, THE 14TH OCTOBER 2010 / 22ND ASWINA 1932 WP(C).No. 31471 of 2010(H) --------------------------------------- PETITIONER: ------------------- M.V.POULOSE, GOVT.CONTRACTOR, MAVELI HOUSE,KARUKUTTY P.O,ANGAMALY-VIA, ERNAKULAM DISTRICT. BY ADV. SRI.BABU JOSEPH KURUVATHAZHA. RESPONDENTS: ------------------------ 1. STATE OF KERALA , REP.BY ITS SECRETARY TO GOVERNMENT,DEPT. OF WATER RESOURCES, GOVT. SECRETARIAT,THIRUVANANTHAPURAM-1. 2. THE EXECUTIVE ENGINEER, IDAMALAYAR IRRIGATION PROJECT NO.2, CHALAKUDY,THRISSUR DISTRICT, PIN 680 307. 3. THE DIRECTOR OF VIGILANCE & ANTI CORRUPTION BUREAU,THIRUVANANTHAPURAM-1. 4. THE MANAGER,UNION BANK OF INDIA, KARUKUTTY BRANCH, KARUKUTTY P.O,ERNAKULAM DISTRICT, PIN -683 576. R1 & R3 BY GOVT. PLEADER SRI. P.N. SANTHOSH. R4 BY SRI. A.S.P. KURUP, S.C, U.B.I. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14/10/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. ANTONY DOMINIC, J. ``````````````````````````````````````````````````````` W.P.(C) No. 31471 of 2010 H ``````````````````````````````````````````````````````` Dated this the 14th day of October, 2010 J U D G M E N T Petitioner is a Contractor. 2. He was awarded the work of improvements/maintenance to the canal at Idamalayar Irrigation Project. According to the petitioner, although he completed the work, based on certain complaints and enquiry initiated by the Vigilance and Anti Corruption Bureau, he had to seek the intervention of this Court for getting the amounts due to him released. It is stated that in order to get the final instalment of Rs.7,96,962/- released, pursuant to the directions in Ext.P1 judgment, he had to furnish bank guarantee, which, due to the pendency of a Vigilance Enquiry, was being kept alive from time to time. 3. While so, by Ext.P3 issued by the second respondent, the bank guarantee was invoked and the fourth respondent was called upon to pay an amount of Rs.2,85,633/-. Petitioner submits that no liability has been WPC.31471/10 : 2 : fixed with notice to him and that without fixing a liability with notice to him, the second respondent could not have unilaterally fixed the liability or invoked the bank guarantee on that basis. 4. Although it may be open to the respondent to release any amount due from the petitioner, still before fixing any liability of the petitioner, the petitioner is required to be given notice and his objection in the matter should also be considered. In this case, it is evident that such a course of action was not adopted and on the other hand, unilaterally, the liability of the petitioner was fixed and on that basis, the bank guarantee is invoked. This course of action adopted by the respondent in violation of the principles of natural justice is clearly impermissible. In that view of the matter, I dispose of this writ petition with the following directions:- Ext.P3, communication issued by the second respondent to the bank, with copy to the petitioner, will be treated as a notice, and it will be open to the petitioner to file his objections, if any, in the matter. This, the petitioner should do WPC.31471/10 : 3 : within three weeks from today and if objections are so filed, the second respondent shall consider the objections with notice to the petitioner and fix liability, if any, that is due from the petitioner. It is directed that, subject to the petitioner filing the objections as directed, until the liability is so fixed, further proceedings for realisation of the amount mentioned in Ext.P3 by invoking bank guarantee shall not be continued. 5. Having regard to the submission made by the learned Government Pleader that the bank guarantee furnished by the petitioner will expire on 29-10-2010, it is directed that the bank guarantee already furnished by the petitioner shall be kept alive for a further period of six months from 29-10-2010 and that the liability due from the petitioner shall be fixed in the meanwhile. Petitioner to produce a copy of this judgment and writ petition before the second respondent for compliance. Sd/- (ANTONY DOMINIC, JUDGE) aks // True Copy // P.A. To Judge