JUDGMENT :

Petitioners are contractors undertaking civil construction works for various agencies including the Kerala Water Authority (the Water Authority). They have approached this court aggrieved by Exts.P6 and P7 orders of the Finance Manager and Chief Accounts Officer of the Water Authority.

2. The facts relevant for adjudication of the dispute, as discernible from the pleadings and the submissions made at the Bar are the following :

Since the Water Authority could not disburse the admitted dues to the contractors in respect of the works satisfactorily executed by them on time due to paucity of funds, a scheme was evolved for early disbursement of the dues to the contractors so as to ease their financial burden. The scheme evolved is that if the contractor exercises option to pay interest for the amounts payable to him, the Water Authority would disburse the dues by borrowing money from the bank, after deducting the interest payable for the said amount for a period of one year. As per the prevailing practice, the contractor is required to exercise option for the said pur