High Court's Intervention On Price Escalation Representation by Vardhan Infrastructure Limited in Coimbatore City Corporation

The High Court of Coimbatore directed the Coimbatore City Corporation to consider the representation filed by Vardhan Infrastructure Limited that requested the payment of price escalation for works that have been completed. The petitioner had submitted the representation on 21.09.2022 but received no response from the corporation, leading to a writ petition being filed in court for a direction.


Coimbatore: The High Court of Madras has issued an order instructing the Coimbatore City Municipal Corporation to consider and pass suitable orders on a representation given by Vardhan Infrastructure Limited about the payment of the price escalation.

According to the petitioner, they are a registered Class-I Contractor with the Coimbatore City Municipal Corporation. The petitioner has successfully completed a number of projects for Tamil Nadu government departments. The respondent corporation issued work orders to the petitioner based on successful bidding in contract notifications issued between 2019 and 2020. The corporation subsequently extended the work orders, instructing the petitioner to continue the works at the same tender price. The petitioner completed the works within the extended period.

Despite the completion of the works, the corporation has yet made a decision on the payment of the price increase. On September 21, 2022, the petitioner submitted a representation asking payment at the escalating price. The petitioner filed a writ petition seeking a court order after receiving no answer from the corporation.

In response, Judge Sounthar issued an order directing the Coimbatore City Municipal Corporation to consider and pass appropriate orders to pay the price escalation. For compliance, a copy of the order was provided to the Commissioner of the Coimbatore City Municipal Corporation.

For the respondent, N.Velmurugan, learned Standing Counsel (Coimbatore Corporation), takes notice.

According to the learned Standing Counsel for the respondent, the petitioner filed a petition in W.P.No.630 of 2023 requesting that the respondent consider the petitioner's representation dated 21.09.2022, and this Court directed the respondent to consider the representation and pass orders.

The learned Standing Counsel for the respondent wishes to confirm whether any orders have been issued in accordance with an earlier directive given by this Court.

At his request, schedule the proceedings for July 18, 2023.

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