Indenture for Secured

Advances [Refer Section 21.3.2]

(For use in cases in where the contract is for finished item of work and the contractor has entered into an
agreement for the execution of a certain specified quantity of work within a specified time.)

This indenture made on the 10th day of January 2018 BETWEEN (hereinafter called the
contractor which expression shall where the context so admits or implies be deemed to include his executors,
administrators and assigns) of the one part and The Chairman, Airports Authority of India (hereinafter called
the Chairman which expression shall where the context so admits or implies be deemed to include his
successors in office and assigns) of the other part.
Whereas by an agreement dated Agreement No: Engg / ED-SR / SM(E-C) / Chennai / Walakalator / 2017 /
01 dated:16.06.2017 (hereinafter called the said agreement) the contractor has agreed.
AND WHEREAS the Contractor has applied to the Chairman that he may be allowed advances on the
security of materials absolutely belonging to him and brought by him to the site of the works the subject of
the said agreement of use in the construction of such of the works as he has undertaken to execute at rates
fixed for the finished work (inclusive of the cost of materials and labour and other charges) AND
WHEREAS The Chairman has agreed to advance to the Contractor the sum of Rupees 5,00,00,000 (Five
crores rupees only)on the security of materials the quantities and other particulars of which are detailed in
Accounts of Secured Advances attached to the Running Account Bill for the said works signed by the
Contractor on and the Chairman has reserved to himself the option of making any further advance or
advances on the security of other materials brought by the Contractor to the site of the said work. NOW
THIS INDENTURE WITNESSTH that in pursuance of the said agreement and in consideration of the sum
of Rupees on or before the execution of these presents paid to the Contractor by the Chairman (the receipt
where of the Contractor doth hereby acknowledge) and of such further advances (if any) as may be made to
him as aforesaid the Contractor doth hereby covenant and agree with the Chairman and declare as follows: -

1. That the said sum of Rupees 5,00,00,000 (Five crore rupees only) so advanced by the Chairman to the
Contractor as aforesaid and all or any further sum or sums advices as aforesaid shall be employed by
the Contractor in or towards expediting the execution of the said works and or no other purpose
whatsoever.
2. That the materials detailed in the said Account of Secured advance which have been offered to and
accepted by the Chairman as security are absolutely the Contractor’s own property and free from
encumbrances of any kind and the Contractor will not make any application for or receive a further
advance on the security of materials which are not absolutely his own property and free from
encumbrances of any kind and the Contractor indemnifies the Chairman against all claim to nay
materials in respect of which an advance has been made to him as aforesaid.
3. That the materials detailed in the said Account of Secured advances and all other materials on the
security of which any further advance or advances may hereafter be made as aforesaid (hereinafter
called the said materials) shall be used by the contractor solely in the execution of the said works in
accordance with the directions of the Jt.GM (Engg.) Shri R. Ganesh (hereinafter called the Engineer-
in-Charge) and in the terms of the said agreement.
4. That the Contractor shall make at his own cost all necessary and adequate arrangements for the
proper watch, safe custody and protection against all risks of the said materials and the until used in
construction as aforesaid the said materials shall remain at the site of the said works in the
Contractor’s custody and on his own responsibility and shall at all times be open to inspection by the

A- 1
 Engineer-In-charge or any other authorized by him. In the event of the said materials or any part
thereof being stolen, destroyed or damaged or becoming deteriorate in a greater degree than is due
to reasonable use and wear thereof the Contractor will forth with replace the same with other
materials of like quality or repair and make good the same as required by the Divisional Officer.
5. That the said materials shall not on any account be removed from the site of the said works except
with the written permission of the Engineer-In-charge or an officer authorized by him on that behalf.
6. That the advances shall repayable in full when or before the Contractor receives payment from the
Chairman of the price payable to him for the said works under the terms and provisions of the said
agreement. Provided that if any intermediate payments are made to the Contractor on account of
works done than on the occasion of each such payment the Chairman will be at liberty to make a
recovery from the Contractor’s bill for such payment by deducting there form the value of the said
materials then actually used in the construction and in respects of which recovery has not been made
previously, the value for this purpose being determined in respect of each description of materials at
the rates at which the amounts of the advances made under these presents were calculated.
7. That if the Contractor shall at any time make any default in the performance of observation in any
respect of any of the terms and provisions of the said agreement of these presents the total amount of
the advance or advance that may still owing to the Chairman shall immediately on the happening of
such default be repayable by the Contractor to the Chairman together with interest thereon at _ percent
per annum from the date or respective dates of such advance or advance to the date of repayment and
with all costs charges damage and expense incurred by the Chairman in or for the recovery thereof or
the enforcement of this security or otherwise by reason of the default of the Contractor and the
Contractor hereby covenants and agrees with the Chairman to repay and pay the same respectively to
him accordingly.
8. That the Contractor herby charges all the said materials with the re payment to the Chairman of the
said sum of Rupees 5,00,00,000 (Five crore rupees only) and any further sum or sums advanced as
aforesaid and all costs charges, damages and expense payable under these presents Provided Always
and it is hereby agreed and declared that notwithstanding anything in the said agreement and without
prejudice to the powers contained therein if and whenever the covenant for payment and repayment
hereinbefore contained shall, become enforceable and the money owing shall not be paid in
accordance there with the Chairman may at any time thereafter adopt all or any of following course
as he may deem best: -
(a) Size and utilize the said materials or any part thereof in the completion of the said works on
behalf of the Contractor in accordance with the provision in that behalf contained in the said
agreement debiting the Contractor with the actual cost of effecting such completion and the
amount due in respect of advances under these presents and crediting the Contractor with the
value of work done as if he had carried it out in accordance with the said agreement and at
the rates thereby provided. If the balance is against the Contractor he is to pay same to the
Chairman on demand.
(b) Remove and sell by public auction the seized materials or any part thereof and out of the
moneys arising from the sale retain all the sums aforesaid repayable or payable to the
Chairman under these presents and pay over the surplus (if any) to the Contractor.
(c) Deduct all or any part of the moneys owing out of the security deposit or any sum due to the
Contractor under the said agreement.

9. Except in the event of such default on the part of the Contractor as aforesaid interest on the said
advance shall not be payable.

10. That in the event of any conflict between the provisions of these presents and the said agreement the
provisions of these presents shall prevail and in the event of any disputes or difference arising over the
construction or effect of these presents the settlement of which has not been hereinbefore expressly
provided for the same shall be referred to the GM (Engg) Shri Tajuddin whose decision
shall be final and the provision of the Indian Arbitration Act for the time being in force shall apply to
any such reference.
 In witness whereof the said and by the order and under the
direction of the Chairman have hereunto-set their respective hands the day and year first above
written.

Signed, sealed and delivered by Signed by Mr. R. Ganesh _ by the order

the said contractor in the presence of and direction of the Chairman in the presence
of
Signature
Signature
Witness Name
For and on behalf of Chairman, Airports
Address
Authority of India.
Witness Name
Address _