The entitlement of contractors for payments without delay and the legality of adjusting the amount due to the financial stipulations were the central legal points established in the judgment.

Petitioner is a registered partnership firm and it is an A-class Public Works Department contractor. Petitioner has been awarded the tender for construction of new building for the Government Industrial Training Institute, Eriyad. The tender was accepted for the quoted rate of Rs.1,11,95,363.343/-. By Ext.P1 letter issued by the 2nd respondent, petitioner was directed to produce security deposit for an amount of Rs.5,59,800/- and performance guarantee of Rs.10,36,900/- from a nationalized or scheduled Bank. It is the contention of the petitioner that, for and on behalf of the firm, the Managing Partner executed the works related to construction of Fire and Rescue Station, Eloor, Ernakulam. Ext.P2 is the completion certificate of that work. Out of the four part bills submitted for the aforesaid completed work, only two bills have been paid. The 3rd and 4th part bills amount, which remains unpaid even now comes to Rs.27,21,612/- and Rs.65,53,115/- respectively, and the same is admitted in Ext.P3 letter sent by the 3rd respondent to the 2nd respondent.

2. That apart, it is submitted by the petitioner that, as per Ext.P4 Circular issued by the Government and Ext.P5 judgment rendered by this Court, amounts due to the contractors under completed works can be adjusted towards security deposit for new contracts awarded. Even though petitioner submitted Ext.P6 representation to adjust the amount due from the Department, evident from Ext.P3, towards the security deposit for the work awarded as per Ext.P1, the same is not given a consideration by the respondents, and is insisting for production of the financial stipulations contained under Ext.P1.

3. Second respondent has filed a counter affidavit basically contending that by virtue of revised P.W.D Manual, all former circulars, including Ext.P4 has become inoperative. As per Clause 2009.6 and 7 of the revised PWD Manual, which was revised as per Government Order dated 01.02.2012, the procedure to be followed by the agreement authority has been prescribed, evident from Exts.R2(b) and R2(c) Government Order. Ext.R2(b) has been subsequently revised by Ext.R2(a) to the limited extent as stated therein.

4. Exts.R2(a) and R2(b) do not contemplate for any sort of adjustment as claimed by the petitioner. Security deposit and performance guarantee has been insisted by the 2nd respondent on the basis of Exts.R2(a) and R2(b) and in that circumstances, petitioner cannot rely on Ext.P4. The said facts as stated above were not brought before this Court while passing Ext.P5 judgment and the facts and circumstances existed therein are different and distinct. Therefore, it is contended that petitioner is not entitled to get any reliefs as sought for in the writ petition.

5. Heard learned counsel for the petitioner and the learned Government Pleader and perused the documents on record and the pleadings put forth by the respective parties.

6. Learned counsel for the petitioner has invited my attention to a Division Bench judgment of this Court in 'State of Kerala v. Edward John' [2015 (2) KLT 967], wherein in paragraphs 10, 16 and 17, it is held as follows:

"10. The Kerala Financial Code (hereinafter referred to as 'the Financial Code') contains rules relating to all financial transactions of Government which fall into two broad classes, viz., receipts and disbursements; which should be followed by every Government servant in the matter of receipt, custody and disbursement of Government money. These rules are supplementary to the rules contained in the Kerala Treasury Code and should be applied in conjunction with them. Chapter VII of the Financial Code deals with 'works'. Article 163 of the Financial Code provides that, the rules in Chapter VII are applicable to departments in General and are supplemented for particular departments by the detailed rules and orders contained in the respective department manuals and codes and any other special orders applicable to them. Article 165 provides further tha