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2017 Supreme(Online)(KER) 33385
HIGH COURT OF KERALA
P. B. Suresh Kumar, J
REENA ENGINEERS & CONTRACTORS PVT LTD – Appellant
Versus
KERALA WATER AUTHORITY – Respondent
WRIT PETITION (CIVIL) 25068/2017
Funds cannot be withheld beyond the agreed period post completion of work if satisfactorily executed.
Headnote:
Contractor - Kerala Water Authority - No specific act or section referenced - The court directed the release of the retention amount and security deposit after 24 months of completion of work, emphasizing the contractual obligation to release funds.
Fact of the Case:
The petitioner, a contractor for the Kerala Water Authority, filed a grievance for the non-release of the security deposit and retention amount after completing the work satisfactorily in March 2014, arguing that the amounts could not be withheld beyond 24 months.
Finding of the Court:
The respondents did not dispute the satisfactory completion of work or the withholding period of 24 months, leading the court to conclude in favor of the petitioner.
Issues: Whether the security deposit and retention amount could be withheld beyond 24 months after the completion of work.
Ratio Decidendi: The court held that since the work was completed satisfactorily and no valid reason was provided for withholding the amounts, the funds must be released.
Final Decision: The court ordered the release of the retention amount and security deposit within three months.
JUDGMENT
The petitioner is a contractor who has undertaken and executed a work of the Kerala Water Authority. The grievance of the petitioner concerns the inaction on the part of the respondents in releasing the security deposit and retention amount of the work. It is stated by the petitioner that the work has been executed by them to the satisfaction of the respondents during March, 2014 and the amounts referred to in the writ petition cannot be withheld beyond 24 months. The petitioner, therefore, seeks appropriate directions for release of the said amounts.
2. Heard the learned counsel for the petitioner as also the learned Standing Counsel for the Kerala Water Authority.
3. The fact that the work referred to in the writ petition has been completed by the petitioner satisfactorily during March, 2014 is not disputed by the respondents. Likewise, the specific case of the petitioner that the amounts referred to in the writ petition cannot be withheld beyond 24 months is also not disputed by the respondents.
In the circumstances, the writ petition is disposed of directing the respondents to release the retention amount as also the security deposit referred to in writ petition to the petitioner, within three months from the date of receipt of a copy of this judgment. The petitioner shall produce a certified copy of this judgment for compliance before the respondents.
