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2026 Supreme(Online)(Ker) 19975
IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J
GROMA INFRASTRUCTURE LIMITED – Appellant
Versus
STATE OF KERALA – Respondent
WP(C) NO. 7149 OF 2026
For the Appellants/Petitioners: SRI.P.SHANES METHAR, SRI.N.KRISHNA PRASAD, SRI.A.MOHAMMED FAIZAL, SRI.ARJUN P.V., SRI.HARKISH SREETHU V.S.
For the Respondents: SRI.JUSTINE JACOB
Court permits substitution of performance guarantees with treasury deposits based on previous judgments, ensuring compliance within stipulated time.
Headnote:This judgment examines the statutes surrounding performance guarantees for contract work as per the Jal Jeevan Mission, outlining the terms under which a petitioner may substitute performance guarantees with treasury deposits. The petitioner sought permission based on previous court judgments to replace guarantees without further bank involvement. Following comprehensive considerations and counsel presentations, the court granted relief definitive of the petitioner’s requests. The petition is disposed of, directing procedural compliance by the third respondent within 30 days.
| Table of Content |
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| 1. details of contract work and request for guarantee substitution. (Para 1 , 2) |
| 2. court's decision to grant relief on performance guarantees. (Para 3) |
JUDGMENT
The petitioner is a contractor, and he is awarded the work of “Jal Jeevan Mission (JJM) – 2022 23-CWSS to 13 panchayaths based on Malankara Reservoir-Package-X-Poonjar – Thekkekara panchayath – Providing transmission mains, construction of service reservoirs, providing Distribution networks and FHTCs and allied tender works”. Based on the same, Ext.P2 agreement was also entered into. As per the terms and conditions in the agreement, the petitioner will have to furnish a performance guarantee to the tune of Rs.35,211,815/- and a further sum of Rs.2,46,609/- as the additional performance guarantee. The said guarantee will have to be furnished by way of a treasury deposit and bank guarantee in equal proportions.
2. In the writ petition, the relief sought by the petitioner is to permit the petitioner to substitute the performance guarantee and the additional performance guarantee to be furnished by the petitioner in the form of a treasury deposit, with Ext.P5 sanctioned bill. It is pointed out that, in Ext.P7 judgment, this Court has already permitted such exercise.
3. After hearing the learned counsel for the petitioner and the learned Standing Counsel for the respondents, I am inclined to dispose of this writ petition, granting reliefs to the petitioner. In the light of the observations made in Ext.P7.
Accordingly, this writ petition is disposed of, directing the
3rd respondent to permit the petitioner to substitute the performance guarantee and additional performance guarantee in the form of a treasury deposit with Ext.P5 bill. Necessary orders in this regard shall be passed by the 3rd respondent within a period of 30 days from the date of receipt of a copy of this judgment upon the petitioner executing the necessary documents.
Sd/-
