KETI CONSTRUCTIONLIMITED Vs. STATE OF M P

JUDGEMENT

(1.) THE present appeal is directed against the order dated 20-5-2006 passed by the learned Single Judge in W. P. No. 6385 of 2006.

(2.) THE facts which are essential to be stated are that the appellant-petitioner (hereinafter referred to as 'the appellant'), a Private Limited company registered under the Indian Companies Act, 1956, is a registered contractor under the Public Works Department (PWD ). A contract was awarded to him for the value of Rs. 5,78,54,000/ -. The appellant executed the work and during the construction work purchased minor mineral from local suppliers/traders from the open market. It completed the work in question, i. e. , upgradation and improvement of Khandwa-Deotali Road Km 1 to 55 within the time and submitted the bill as per measurement from time to time. When the question of payment arose, the respondent No. 2, the Engineer-in-Chief, Public works Department issued a letter dated 25-7-2005, Annexure P-5, requiring it to obtain Royalty Clearance Certificate from the Collector against the purchase of minor minerals like sand, murrum and metal which were used in the construction of road and on failure to obtain the certificate explain why the royalty amount should not be deducted from the deposit of 15% of performance security.

(3.) THE appellant submitted a reply on 29-7-2005 stating, inter alia, the demand of Royalty Clearance Certificate after two years of completion of work was wholly unreasonable and unjust and not legally warranted. There was a prayer to make the payment without insisting for such certificate. Despite the said explanation preferred, the amount was not paid. As the amount was not paid, the writ petition was filed on the ground that the amount could not be withheld in law.