IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMAN & THE HONOURABLE MR. JUSTICE P.BHAVADASAN THURSDAY, THE 11TH JUNE 2009 / 21ST JYAISHTA 1931 DBAR.No. 3 of 2000() -------------------- IN THE MATTER OF COCHIN DEVASWOM BOARD AUDIT REPORT PETITIONER(S): -------------------- THE DEPUTY DIRECTOR, LOCAL FUND AUDIT, COCHIN DEVASWOM BOARD AUDIT, THRISSUR. BY GOVERNMENT PLEADER SRI. LAXMI NARAYANAN. RESPONDENT(S): ----------------------- THE SECRETARY, COCHIN DEVASWOM BOARD, THRISSUR. SRI. KRISHNAKUMAR MANGOT -AMICUS CURIAE FOR OMBUDSMAN. ADV. SRI.C.E.UNNIKRISHNAN,SC,COCHIN DEV.BOAR THIS DEVASWOM BOARD AUDIT REPORT HAVING COME UP FOR ADMISSION ON 11/06/2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: P.R. RAMAN & P. BHAVADASAN, JJ. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - D.B.A.R. No. 3 of 2000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 11th day of June, 2009. JUDGMENT Raman, J, Final Report No.35 of 2009 dated 12.3.2009. This is a matter pertaining to the work relating to electrification of West Pallithanam Shopping Complex, Thrissur. The audit objection is that 21% excess of the estimate rate cannot be admitted, which comes to Rs.3,47,588/-. The Ombudsman has reported that as per the PWD Manual, if items not included in the departmental schedule of rates are included in an estimate, the data for unit rate should be worked out based on the market rate for the item or its components. It is also stated that tender excess is not paid at the time when market rate is provided. The contractor, who is quoting the tender excess or below based on the total cost, which he will have to incur for executing the work, includes materials, labour, transportation probable hike in cost etc. When competitive tenders are invited, the lower tender has to be accepted. In the circumstances, Ombudsman reported that there is no reason why DBAR.3/2000. 2 the tender excess should be disallowed. 2. We have heard the parties and for the reasons stated in the report, we accept the same and the audit objection is overruled. 3. However, the Devaswom Board shall before acceptance of the final tender, sanction from this court be obtained in all cases so that any defect in the tender submitted before the same is approved could be brought out to the notice of this court by the Local Fund Audit. Report dated 23.1.2009 4. Paragraph 2 of the report refers to spending an amount of Rs.70,647/- for repair of an Ambassaror Car. The audit objection is that the original cash bills, receipts etc., were not furnished. But the Board had passed an amount of Rs.41,900/-. Though this was stated to be on a hire side for an Ambassador car and the matter was required to be enquired into, a reply has been filed by the Board contending that Sri.C.N.Vasudevan was the Secretary during the relevant period and he retired in 2000 itself and hence no explanation could be called from him. The Ombudsman reports that at this distance of time, no useful DBAR.3/2000. 3 purpose will be served by further enquiry and there is no possibility of realising the amount. Report accepted. Objection dropped. Report dated 23.7.2008 5. Paragraph 6 of the report refers to Paragraph 45(12) of the audit report relating to arrears of rent due from one Nandakumar. An amount of Rs.94,265/- is due from him. After perusing the file produced by the Board, Ombudsman reports that the suit filed for arrears of rent was decreed only for Rs.16,524/- with interest and costs and on deposit of the amount the Advocate endorsed full satisfaction. For the subsequent period, notice dated 1.10.1992 was issued by Sri.Nandakumar offering to surrender the building. The tenant requested to absolve from the responsibility of paying rent from November, 1992 onwards. Actual possession was taken only on 6.5.1995 and Board resolve to write off the subsequent rent as per the resolution dated 5.10.2004. DBAR.3/2000. 4 6. We find that at this distance of time, steps for realisation of arrears of rent, which fell due in 2004 is rather impossible. We record our dissatisfaction in the manner in which the same was dealt with. Whenever there is default committed for six months by the tenant, hereafter, the officer concerned under whose jurisdiction the building is situated, must bring it to the notice of the Board and the Bord shall give appropriate direction for the realisation of rent. A Circular to this effect may be issued by the Board or by the Commissioner now in charge to all Devaswom Officers and thereafter if any default is committed by the officer to bring it to the notice of the Board, appropriate action will be taken against that officer. 7. Paragraph 11 of the report of the Ombudsman relates to paragraph 57 of the Local Fund Audit Report relating to the non- deduction of the welfare fund contribution from Sri C.V.Subramonian, who is no more now. The successor Sri. Vasudevan has also retired long back. In the circumstances, as recommended by the Ombudsman matter may be treated as closed. Further action dropped. DBAR.3/2000. 5 8. Paragraph 13 of the report refers to paragraphs 5(ii) and 8(ii) of the audit report. The objection is with regard to late deposit of interest on Fixed Deposit in S.B. Account. The deposit got matured on 28.9.1999. But the interest is credited only on 27.10.2000. As a result, there is a loss of interest of Rs.47,864/-. Taking into consideration that the officers concerned have already retired and one of them is dead, there is no purpose served by proceeding against the legal heirs or against the retired employee. However, we direct that wherever the deposit is got matured, in case of any loss of intimation given to the Bank, the account may be renewed from the date on which it matured so as to avoid this loss. Accordingly the application is closed. P.R. Raman, Judge P. Bhavadasan, Judge sb.