High Court Kerala High Court

C.K.Gopi vs Travancore Devaswom Board on 6 July, 2009

Kerala High Court
C.K.Gopi vs Travancore Devaswom Board on 6 July, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 2311 of 2009(A)


1. C.K.GOPI, SIVAS HOUSE, ETTUMANOOR
                      ...  Petitioner
2. P.A. RAVI, PULIKKANTHOTTIYIL,

                        Vs



1. TRAVANCORE DEVASWOM BOARD
                       ...       Respondent

2. STATE OF KERALA REPRESENTED BY ITS

3. THE ASSISTANT DEVASWOM COMMISSIONER

                For Petitioner  :SRI.P.B.SAHASRANAMAN

                For Respondent  :SRI.K.N.VENUGOPALA PANICKER, SC, TDB

The Hon'ble MR. Justice P.R.RAMAN
The Hon'ble MR. Justice P.BHAVADASAN

 Dated :06/07/2009

 O R D E R
                    P.R. RAMAN & P. BHAVADASAN, JJ.
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                           W.P.(C) No. 2311 of 2009
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                      Dated this the 6th day of July, 2009.

                                       JUDGMENT

Raman, J,

Petitioners are stated to be devotees of Ettumanoor

Sree Mahadeva Temple. This writ petition is filed as a public

interest litigation so as to avoid loss to the Devaswom as a

result of non-payment of the contract amount after the

stipulated period. It is pointed out that right to sell the items

through the various stalls are auctioned through Kuthakalelam.

The auction purchaser is to deposit 10% of the amount initially

and if he is the highest bidder, he will have to deposit 50% of

the auction amount on confirmation of auction sale. For the

remaining 50%, the highest bidder used to give solevency

certificates. No bank guarantee or valid security is obtained

for this 50% amount. As a result, in case of default, the

Devaswom will be losing 50% of the bid amount.

WPC. 2311/2009. 2

2. The remarks filed by the Devaswom Board through

Secretary shows that it is only in the rarest of rate cases that this

happends since no extension is normally given after the expiry of

the six months period in case the 25% thereafter is not remitted

before such expiry.

3. The Local Fund Auditor has also suggested that by

incorporating appropriate clauses in the tender condition and in the

agreement so as to plug any loophole and to ensure that no loss is

sustained to insist for a bank guarantee for 50% of the bid amount.

No specific remark is offered by the Devaswom in the matter.

4. Having considered all the aspects of the matter, we

find that sufficient security by way of immovable property is

required to be furnished at the time of entering into the contract.

The problem arises because atleast in some cases where the

contractor is permitted to continue even after six months without

he being remitted 25% of the amount may result in loss owing to

his default in payment of 25% unless suit for realisation is not filed

WPC. 2311/2009. 3

within three years. Therefore, we direct that in cases where six

months period expires and 25% is not remitted before the expiry of

the said period, either the contract be terminated and loss recovered

or insist for security by way of Bank Guarantee.

The writ petition is disposed of as above.

P.R. Raman,
Judge

P. Bhavadasan,
Judge

sb.