Order

22/05/2025

1) Arguments were heard on the application for vacation of the interim orders.

2) All these writ petitions have been filed challenging the action of the respondents in deducting liquidated damages/ compensation/penalty from the running bills or final bills.

3) The respondents' action is based on Clause 2 of the tender document, which reads as follows:-

“Clause 2: Compensation for delay The time allowed for carrying out the work (21 months), as entered in the tender, shall be strictly observed by the Contractor and shall be reckoned from the 10th day after the date of written order to commence the work is given to the Contractor. If the Contractor does not commence the work within the period specified in the work order, he shall stand liable for the forfeiture of the amount of Bid security and Security Deposit. Besides, appropriate action may be taken by the Engineer-in-Charge/ competent authority to debar him from taking part in future tenders for a specified period or black list him. The work shall, throughout the stipulated period of completion of the contract, be proceeded with all due diligence, time being essence of the contract, on the part of the Contractor To en