The Government of Tamil Nadu v. P.S.T. Engineering Construction

Judgment (Judgment of the Court was delivered by S.M.Subramaniam J.) The respondent preferred a writ petition challenging the resolution No.4.17/487 dated 10.08.2018 of the 2nd respondent, culminating in resolution dated 07.06.2019 of the 2nd respondent and consequential proceedings dated

19.11.2019 of the 4th respondent and further direct the respondents to release the balance sum of Rs.2,755, 44,,915/- along with eligible 1% bonus amount to the appellant herein.

¶2The resolution passed in 487 Board Meeting held on 10.08.2018 reads as follows: Items No. SUBJECT

4.17 PMAY(U)- HFA – Construction of 864 tenements (Stilt +9 floors) including all services such as Internal and external water supply, sanitary, electrification and development works using conventional technology under Lumpsum Turkey Design and build basis contract system at K.P. Park scheme in Cor.Dn.77 under Vertical-III (AHP) – Request of the contractor to pay the GST at the rate of 12% of the accepted tender value in additional to be bill value-Reg. (HFA/4802/17) TNSCB may consult a Consultant/ Auditors approved by CMRL/ Government Department to verify the claims of the contractors, under GST and the same may be placed before the Board for consideration. Page3 of 4

¶3Clause 6.6. as well as the special condition in the contract entered into between the parties would show that all applicable tax are to be paid and the Government Order issued in G.O.264, Finance (Salaries) Department dated 15.09.2017 would apply. In the event of dispute, the parties have to resolve the same either by invoking arbitration clause or by approaching the competent Forum in the manner known to law. Since there is a dispute caused regarding payment of tax, based on the terms and conditions of contract, the issues cannot be resolved in a writ proceedings. Thus, the writ order is set aside and the Writ Appeal stands allowed. No costs. (S.M.S.,J.) (K.S.,J.) 04-03-2026 Index: Yes/No Speaking/Non-speaking order VSI To Mr.V.S.Thennarasu, Managing Partner, P.S.T. Engineering Construction No. 5/72C, Salem Bye-Pass Service Road, Nallipalayam Post, Namakkal 637 003. WAoNo.o1790oofo2022 S.M.SUBRAMANIAMeJ. AND K.SURENDEReJ. vsi WAeNo.e1790eofe2022 and CMPeNo.e13123eofe2022 04-03-2026 Page4oofo4

2026:MHC:950 Page1 of 4 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 04-03-2026 CORAM THE HON'BLE MR JUSTICE S. M. SUBRAMANIAM AND THE HON'BLE MR.JUSTICE K. SURENDER and CMP No. 13123 of 2022 1. The Government of Tamil Nadu Rep. by its Additional Chief Secretary Finance (Salaries) Department, Fort St. George, Chennai. 2. The Tamil Nadu Slum Clearance Board Rep by its Chairman, No. 5, Kamarajar Salai Chennai 600 005 3. The Tamil Nadu Slum Clearance Board Rep. by its Managing Director, No. 5. Kamarajar Salai, Chennai 600 005 4. The Superintending Engineer Chennai Circle III, Tamil Nadu Slum Clearance Board, No. 5, Kamarajar Salai, Chennai 600 ..Appellant(s) Vs P.S.T. Engineering Construction Rep. by its Managing Partner V.S.Thennarasu, No. 5/72C, Salem Bye-Pass Service Road, Nallipalayam Post, Namakkal 637 003. ..Respondent(s) To set aside the order passed by the learned Judge WP.No. 34682/2019 (Common Order passed in WP.Nos.34682/2019 and 34687/2019), dated 4.4.2022. Page2 of 4 For Appellant(s): Mr.Ramanlal, Additional Advocate General, assisted by Mr.T.Arunkumar for Additional Government Pleader For Respondent(s): Mr.H.S.Hredai