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2026 Supreme(Online)(Ker) 964

IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR. ZIYAD RAHMAN A.A., J
C-TWO INFRA STRUCTURE PVT LTD. – Appellant
Versus
THE ASSISTANT ENGINEER II, PWD ROADS MAINTENANCE SUBDIVISION, PALAKKAD CITY – Respondent


Advocates:
For the Appellants/Petitioners: SRI.R.O.MUHAMED SHEMEEM, SMT.NASEEHA BEEGUM P.S.
For the Respondents: SHRI.BINOY DAVIS, GOVERNMENT PLEADER

Table of Content
1. failure to release performance guarantee (Para 1 , 2)
2. counter affidavit opposing reliefs (Para 3 , 4)
3. justification for withholding guarantee (Para 5)
4. determination of liability post-contract (Para 6)

JUDGMENT

The petitioner is a Company, engaged in the business in connection with the undertaking of major civil and allied works under the Government and Non-Government sectors. The grievance highlighted by the petitioner is regarding the failure on the part of the respondents in releasing the performance guarantee furnished by the petitioner, as evidenced by Ext.P4.

2. Earlier, based on a tender floated by the respondents on 30.03.2023, the petitioner submitted the bid and it was selected as the successful bidder. Ext.P1 is the Letter of Acceptance and Ext.P2 is the agreement dated 22.06.2022 executed by the petitioner. The said agreement was for maintenance of various PWD roads in Roads Sections for General Civil Works of Shornur in Palakkad District and the tenure of the contract was one year. According to the petitioner, the said period expired on 21.06.2023. Despite the fact that the tenure of the agreement is over, the amount of performance guarantee has n

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