The Travancore Devaswom Board vs. The Deputy Director, Local Fund Audit

DBP/7/2021HC KeralaGSTCNR KLHC01014189202131 May 2021Bench: HONOURABLE MR.JUSTICE C.T.RAVIKUMAR,HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN11 pages
AI SummaryAllowed

Held

The Court observed that an exaggerated estimate was prepared and directed the Board to exercise caution in future estimates, particularly regarding 'unforeseen works'. Despite the low bid, the contract sanction was accorded to the lowest bidder, M/s. TJSV Steel Fabrication, subject to obtaining performance security and ensuring quality as per specifications.

Facts

The Travancore Devaswom Board sought judicial sanction for a contract to supply stainless steel Kanikka Vanchies, where the lowest bid of Rs. 29,15,440/- was significantly lower than the estimated cost of Rs. 46,80,000/-. The Ombudsman and the Court raised concerns about this considerable difference.

Key Issues

The key issues were whether to approve a contract where the lowest bid was substantially below the estimated cost, and the need for accurate estimation and quality assurance when public funds are involved.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE C.T.RAVIKUMAR & THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN MONDAY, THE 31ST DAY OF MAY 2021 / 10TH JYAISHTA, 1943 DBP NO. 7 OF 2021 IN THE MATTER OF TRAVANCORE DEVASWOM BOARD-TDB REPORT NO.02/2021 IN PETITION NO.12/2020-IN THE MATTER OF APPROVAL OF CONTRACT SANCTION FOR THE SUPPLY OF “STAINLESS STEEL KANIKKA VANCHIES OF VARIOUS TYPES UNDER TRAVANCORE DEVASWOM BOARD TEMPLES”-SUO MOTU PROCEEDINGS INITIATED PETITIONERS: 0 THE TRAVANCORE DEVASWOM BOARD REPRESENTED BY ITS EXECUTIVE ENGINEER, ESTATE DIVISION, SCCHR LIBRARY BUILDING, THIRUVANANTHAPURAM - 695 001 BY ADV SHRI.G.BIJU,SC,TRAVANCORE DEVASWOM BOARD RESPONDENT: 0 THE DEPUTY DIRECTOR, LOCAL FUND AUDIT THIRUVANANTHAPURAM SR. GOVERNMENT PLEADER SRI.T.K ANANDAKRISHNAN SRI.P.RAMACHANDRAN, AMICUS CURIAE THIS DEVASWOM BOARD PETITION HAVING COME UP FOR ADMISSION ON 7.04.2021, THE COURT ON 31.05.2021 DELIVERED THE FOLLOWING: DBP.7/2021 2

Murali Purushothaman, J. DBP No.7/2021 is registered on the basis of TDB Report No.2 of 2021 in Petition No.12 of 2020 filed by the learned Ombudsman for Travancore and Cochin Devaswom Boards.

Petition No.12/2020 i

The judgment continues below.

Read the full judgment

A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

Reproduced from the public record of the Kerala High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.