The petitioner was one of the bidders against the

notification issued by the respondent No.2 on 12.01.2005

for the tender work namely “Remodeling of Primary and

Secondary

Storm

Water

Drains,

Remodeling

of

Culvert/Bridges and Formation of service roads etc., in

Vrishabhavathi Main Valley (V100)” in Bangalore City i.e.,

3

from Ch.0.00 m. upto Ch.8000.00 m. i.e., from Sankey

Tank near Malleshwaram upto Gali Anjaneya Temple,

Mysore Road and its connected secondary drains.

The bid submitted by the petitioner was

accepted and after negotiations an agreement was entered

into between the petitioner and respondent No.2 on

20.03.2006. The petitioner claims that the work was to be

completed within 18 months from the date of handing over

the site, which included the period of monsoon. The

petitioner

furnished

two

Bank

Guarantees

towards

performance security each amounting to Rs.2,12,04,300/-

and aggregating to a sum of Rs.4,24,08,600/- being 10%

of the contract value. The petitioner claims that it had

mobilized the required men and machinery and materials

for execution of the work within the time prescribed.

However, the respondent Nos.2, 3 and 4 failed to handover

the possession of the site within the time agreed, which

culminated

in

various

correspondence

between

the

petitioner and respondent No.2. The petitioner, therefore,

4

alleged that there was a fundamental breach on the part of

the respondents in not handing over the possession of the

site in time, resulting in delay in issuance of drawings and

further needful action. The petitioner alleged that it could

only perform works which were valued at a sum of

Rs.10.26 Crores as against contracted value of Rs.42.40

Crores. The petitioner sought settlement of the pending

bills and for release of the Bank Guarantees, the earnest

money deposit and security deposit in terms of the various

letters which are enclosed at Annexures - F, F1 to F3.

Likewise, in respect of another tender for

“Remodeling of Primary and Secondary Storm Water

Drains, Remodeling of Culvert/Bridges and Formation of

service roads etc., in Vrishabhavathi Main Valley - II

(Kathriguppe Valley - V300)” in Bangalore City i.e., from

Ch.0.00 m. upto Ch.5000.00 m. i.e., from Srinivasanagara

Main Road upto BWSSB, STP, at Mysore Road and its

connected secondary storm water drains, which was

modified from time to time, the bid of the petitioner was

5

accepted. After negotiations, an agreement was entered

into on 20.03.2006. Even in respect of this project, the

respondent No.2 failed to handover the project area within

the time, which resulted in reduced work, which was

valued at Rs.19.77 Crores as against the contracted value

of Rs.45.82 Crores. The petitioner prayed for payment of

the bills raised, refund of the security deposits furnished

etc.

In order to resolve the imbroglio, a Conciliation

Committee comprised of six members was set up by the

respondent Nos.2 and 3 to settle the issues as per the

advice of the Technical Advisory Committee. The

Committee in terms of its conclusions held that the

petitioner had undertaken the work of “Remodeling of

Primary

and

secondary

storm

water

drains

in

Vrishabhavathi Valley Package - 1”. The Committee also

held that the petitioner had agreed for foreclosure of the

contract awarded to it and for release of the security

deposit recovered by the respondent No.2 and that the

6

balance work could be got executed through another

agency without operating the risk and cost clause and also

the petitioner would not putforth any claims. The

Committee held that the petitioner was entitled to the

payments in respect of the works already executed. Based

on such conclusions of the Conciliation Committee dated

07.01.2012, the respondent No.3 addressed a letter to the

respondent

No.1

highlighting

the

issues

concerning

delayed execution of the works. The respondent No.3,

thereafter, on 22.01.2013 addressed a communication to

the respondent No.1 narrating all the issues that came in

the way of