Gireesh Chandran vs. Chirakkadavu Grama Panchayath
Held
The Court found that the demands for royalty, seigniorage, and GST were unsustainable as they were not stipulated in the tender documents or agreement. Since the Panchayat failed to secure necessary permissions, the petitioner could not be compelled to remove the earth. The Court quashed the Panchayat's demands and directed a refund of the petitioner's deposit.
Facts
The petitioner was the successful bidder for a tender floated by the Panchayat to remove red earth. Due to the Panchayat's failure to obtain permission from the Geology Department, the petitioner could not execute the work. The Panchayat subsequently demanded royalty, seigniorage, and GST, which were not part of the original tender or agreement.
Key Issues
Can a Panchayat unilaterally demand royalty, seigniorage, and GST from a successful bidder when these were not stipulated in the tender or agreement? Can a bidder be compelled to perform work if the tendering authority fails to obtain necessary statutory permissions?
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN MONDAY, THE 4TH DAY OF MARCH 2024 / 14TH PHALGUNA, 1945 WP(C) NO. 3246 OF 2024 PETITIONER: GIREESH CHANDRAN, AGED 30 YEARS S/O. K. N CHANDRAN PILLAI, KANNIPLACKAL HOUSE, PANACHEPPALLY P.O., KOOVAPPALLY, KOTTAYAM, PIN – 686 518. BY ADVS. CHRISTINE MATHEW ABESH ALOSIOUS AISWARYA E J VETTIKOMPIL SEN C PUTHUPPARAMPIL RESPONDENTS: 1 CHIRAKKADAVU GRAMA PANCHAYATH, REPRESENTED BY ITS SECRETARY, PONKUNNAM P.O, KOTTAYAM DISTRICT, PIN – 686 506. 2 THE SECRETARY, CHIRAKKADAVU GRAMA PANCHAYATH, PONKUNNAM PO, KOTTAYAM DISTRICT, PIN – 686 506. BY ADVS. SRI. MATHEW JOHN - SC ABY J AUGUSTINE THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.03.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No.3246 OF 2024 2 JUDGMENT The 1st respondent Panchayat floated tender for removing 1575 M3 of red earth from the site where a building is constructed for Padanilam Primary Health Centre. The petitioner was the successful bidder and he floated tender for an amount of Rs.3,00,500/-. Since the Panchayat did not obtain permission from the Geology Department, t
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