Point of law: Sub-section (14) also makes it clear if the amount is not paid within 30 days after the date of service on him of the decision of the Auditors etc., the amount shall be recoverable as if it were an arrear on land revenue.

JUDGMENT :

Petitioners were the Chairperson and members of Adoor Municipality - the 1st respondent respectively during the period 2000-2005. It is aggrieved by the action initiated by respondents 1 to 3 i.e., the Adoor Municipality, the Director, Urban Affairs Directorate, Thiruvananthapuram, the Secretary to the Government, Department of Local Administration, Thiruvananthapuram, for realisation of an amount of Rs.2,90,366/-, from the petitioners in equal proportion towards the loss caused to the Municipality during their tenure, the writ petition is filed.

2. During the said period, Municipality entered into a contract with a private firm by name, M/s.Ammini Energy Systems Private Limited, for the purpose of purchasing certain electric items for installation of street lights.

Pointing out irregularities, the Finance Department of the State Government caused an inspection and found certain irregularities quantifying the loss so caused to the Municipality at Rs.2,90,366/-. Consequently, proceedings purportedly under section 547(1) of the Kerala Municipality Act, 1994, have been initiated against the 1st petitioner and the Secretary of the Municipality.

3. According to the petitioners, 2nd respondent Municipality, based on the resolution adopted by the Council in its meeting held on 15/9/2004, had invited competitive tenders/quotation from recognised suppliers, for the supply of electric lamps and other items for installation of street lights in various wards within the limits of the Municipality, evident from Exhibit P1.

4. It is the case of the petitioners that the Council had taken the aforesaid decision on the basis of the demands made by all the 22 Councillors, to utilise the own funds of the Municipality earmarked for the development of each ward. The tender notice, besides publishing in the notice board, was published in two vernacular dailies and the details with respect to the lamps were also specified in the notice, evident from Exhibits P2 to P4. The quotations were opened on 19.10.2004 and it was placed before the Municipal Engineer for examination. The Municipal Engineer prepared a note pointing out that M/s.Ammini Energy Systems Private Limited, alone quoted the rate for CFL lights, while two others did not quote any rate. It was further noted that for the supply of sodium vapour lamps, lowest rate was quoted by M/s.Electro Tech Industries, however, without specifying the ISI mark or name of the manufacturer. As regards tube lights, it was noted that the lowest quotation was from M/s.Electro Tech Industries but since it was not shown that the lights to be supplied by the Electro Tech Industries has ISI mark, it was suggested to address the suppliers for clarification. Accordingly, necessary steps were taken in accordance with the note made by the Municipal Engineer. The response from the respective bidder was placed before the Municipal Engineer and it was again verified.

5. After verification, the matter was placed before the Council and a unanimous decision No.7 dated 25.1.2005 of the council preferred the quotation submitted by M/s.Ammini Energy Systems Private Limited and authorised the Chairman of the “Standing Committee for Development” to negotiate further with the supplier. The reasons for preferring M/s.Ammini Energy Systems Private Limited, has been specifically stated in the said decision.

6. On a comparative evaluation, the Council noted that M/s.Ammini Energy Systems Private Limited alone offered automatic CFL and the 550 CFL already supplied by the company installed in several places were in good condition and further that, the maintenance of the street lights were being done promptly. However, as regards the rate quoted by M/s.Ammini Energy Systems Private Limited in respect of CFL was found to be on the higher side and it was decided to negotiate with the representative of the company, evident from Exhibit P5 resolution.

7. Therefore, negotiations were done in respect of the three items quoted by M/s.Ammini