MP High Court Issues Contempt Notice To Ujjain Municipal Commissioner For Failing To Explain Delay In Releasing Contractor's Security Deposit

The Madhya Pradesh High Court on Tuesday (October 7) summoned the Commissioner of Ujjain Municipal Corporation to explain why contempt proceedings should not be initiated against him for failure to explain the delay in releasing a contractor's security deposit, despite explicit orders.The court was hearing a petition filed by CMM infrastructures seeking the release of security deposit that had been withheld since 2016 despite completion of the work. The petitioner contended that despite the closure of a complaint by the Lokayukt on November 20, 2020, the corporation failed to release the amount. Vide order dated July 21, 2025, the Court had directed the Corporation to file a reply explaining the delay in releasing the security deposit, identifying the officials responsible for such delay and why interest should not be awarded to the petitioner for the delay of 10 years.Counsel for the corporation had submitted that the petitioner failed to apply for the issuance of a completion certification and, therefore, the security deposit could not be released.The court had rejected this contention, noting; "When this fact is known to the respondent/corporation that the work has been completed long back and the final bill has been prepared, then why the completion certificate has not been issued till date. It is not the case where a third agency is required to issue the completion or no objection certificate and only thereafter the corporation shall release the security deposit". The court observed that the July 21 order was not complied with either partially or wholly. It further noted that no explanation was provided by the corporation for such non-compliance, which amounted to contempt of court. Thus, the bench of Justice Vivek Rusia and Justice Binod Kumar Dwivedi directed,"The Commissioner, Ujjain Municipal Corporation / respondent No.2 is directed to remain present before this Court on the next date of hearing to explain why the proceedings of contempt be not initiated against him for non-compliance of the order of this Court". The case was listed for October 27, 2025.Case Title: CMM Infraprojects Ltd v State [WP-16106-2025]For Petitioner: Advocate Prabuddha SinghFor Respondent: Deputy Advocate General Sudeep BhargavaFor Municipal Corporation: Advocate Vivek PatwaClick here to read/download the Order

MP High Court Issues Contempt Notice To Ujjain Municipal Commissioner For Failing To Explain Delay In Releasing Contractor's Security Deposit

Jayanti Pahwa

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