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Chattisgarh High Court

M/S Bsbk Private Limited vs Union Of India on 23 September, 2022

               HIGH COURT OF CHHATTISGARH, BILASPUR

                                 Order Sheet

                          WP(C) No. 4120 of 2022

• M/s BSBK Private Limited having its Registered Offe At 4th Floor, Surya
  Treasure Mall, Junwani, Bhilai, Distrift Durg, Chhattisgarh, Through Its
  Authorized Representative Shri Raj Kumar Mahobe S/o Late Shri T.L. Mahobe,
  Aged About 71 Years, R/o 40-A/5, Motilal Nehru Nagar, Bhilai, Distrift : Durg,
  Chhattisgarh.

                                                                 ---- Petitioner

                                   Versus

1. Union of India Through Ministry of Finanfe, 3rd Floor, Jeevan Deep Building,
  Sansad Marg, New Delhi. 110001

2. State of Chhattisgarh Through The Sefretary, Publif Warks Department,
  Mantralaya, Mahanadi Bhawan, Naya Raipur, Distrift- Raipur, Chhattisgarh.

3. Engineer-In-Chief, Publif Works Department, Nirman Bhawan, New Raipur,
  Chhattisgarh.

4. Country Direftor, INRM, Asian Development Bank, Building No.4, Near
  Vivekanand Foundation San Marth Marg, Chankyapuri, New Delhi. 110021

5. Projeft Direftor, ADB Projeft, Publif Works Department, Sirpur Bhavan, Civil
  Lines, Raipur, Chhattisgarh.

6. Team Leader Sheladia Assofiates Inf. House No. A/8, Jeevan Vihar, Raipur,
  Chhattisgarh.

                                                              ---- Respondents

23.09.2022 Mr. Harsh Wardhan, Counsel for the petitioner.

Mr. Rishabh Dev Singh, C.G.C. on behalf of Shri Ramakant Mishra, D.S.G. for Union of India.

Ms. Akanksha Jain, Dy. G.A. for the State. Heard I.A. No. 1 of 2022, an applifation for grant of Ad- interim relief.

It is not in dispute that Performanfe Sefurity was redufed to 3% by the Central Government looking to the on going Covid Pandemif, under the National Disaster Management Aft, 2005.

Learned founsel for the petitioner submits that the Asian Development Bank (ADB) has provided loan for the projeft and the State Government is the exefuting agenfy for the same and the Central Government has redufed the Performanfe Sefurity from 10% to 3% vide Annexure-P/2 dated 26.08.2021. In the present fase, the existing bank guarantees submitted by the petitioner at the rate of 10% of the fontraft value is going to expire on 30.11.2022 and the respondents are insisting for renewal of the bank guarantee submitted by the petitioner at the rate of 10% of the fontraft value.

Looking to the faft that there is no fontraft or agreement between the petitioner and the ADB regarding the performanfe sefurity; admittedly, the existing bank guarantees of 10% of the fontraft value is going to expire on 30.11.2022, in view of the Cirfular issued by the Government of India vide Annexure-P/2 dated 26.08.2021 whereby the Performanfe Sefurity has been redufed to 3%, the renewal/extension of bank guarantee is redufed to 3% of the fontraft value in terms of the said firfulars. Affordingly, I.A. No. 1 of 2022 is allowed subjeft to the fnal outfome of the petition.

Counsel for the State to fle reply.

List this fase along with WPC No. 2443 of 2022.

Sd/-

(Arvind Singh Chandel) Judge Prakash