Contractor entitled to Completion Certificate and release of Security Deposit upon fulfillment of contracted work despite procedural delays.

JUDGMENT Dated this the 25^th day of June, 2025 The petitioner is a PWD Contractor for the last 30 years. The petitioner has successfully completed many projects for the respondents. The petitioner was awarded road construction work of SC / ST DD-Construction of Varagampady-Moolagangal Road Km 0/000 to 10/300 in Palakkad District (balance work) as per agreement No.SE(K)/5/2025-16 dated 16.04.2015 for an amount of ₹

1,58,10,503/-. The work commenced on 24.04.2015 and was completed on 16.06.2016.

2. Completion Certificate of the work was prepared by the 3^rd respondent, verified by the 2^nd respondent and approved by the 1^st respondent. All the bills were passed by the respondents and the amount was paid subsequently even though the payment was delayed. The petitioner thereafter submitted request letters for release of the Security ₹

Deposit of 2 lakhs on 20.05.2019 and 10.08.2020. But, the 4^th respondent did not respond to the request of the petitioner.

3. The petitioner went to the office of the

4^th respondent several times. But, there was no result. Finally, the petitioner submitted another letter dated 23.04.2024 to the 4^th respondent requesting to release the Security Deposit immediately since his daughter's marriage was fixed to the month of July, 2024. But, the 4^th respondent has not responded to the letter till now. Hence, the petitioner is before this Court.

4. Government Pleader entered appearance and resisted the writ petition. On behalf of the respondents, it is submitted that after receiving payment from third part bill, numerous letters and notices were sent to the petitioner for completing the balance work as per the contract agreement.

But, the Contractor was reluctant. Construction of retaining wall and Kilometer stone work were to be completed as per the agreement. But, the Contractor was not willing to execute the remaining work. It is because the total amount available ₹

as per deposit from SC / ST Department was 1,82,00,000/-, ₹

out of which 53,75,841/- was paid to the first Contractor and ₹

1,08,71,427/- was paid as part bill to the petitioner.

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Remaining amount available as per deposit was 10,02,123/- and for execution of remaining work as per contract requires ₹ ₹

39,88,467/-. Hence, additional amount of 29,86,344/- was required to complete the work as per the contract agreement.

5. The Contractor was reluctant and there was ₹

shortage of 29,86,344/- and the road was trafficable. Considering all the above facts, the Executive Engineer submitted a letter seeking possibility for closure of work and also recommended to consider third part bill as the final bill.

Based on this, the Executive Engineer recommended for issuing Completion Certificate.

6. As office of the Chief Engineer (CE) is the TS authority, it was forwarded to the CE for decision and further instruction. The CE forwarded it to the Secretary (PWD) for further instruction and action. The Office of the 4^th respondent did not receive any instruction from the higher authority and even to this date, the decision is pending.

7. Hence, the work is treated as non-completed as per records / contract agreement. Only once instructions are received from AS and TS authority, action can be taken by the 4^th respondent. Since the work is not completed as per the contract agreement, the Completion Certificate could not be issued and therefore the 4^th respondent is not in a position to release the security deposit.

8. I have heard the learned counsel for the petitioner and the learned Government Pleader representing the respondents.

9. The specific case of the petitioner is that the petitioner has completed all the works in the year 2016 to the satisfactio