JUDGMENT :

It is a settled position that the unliquidated damages do not give rise to debt especially when the same is disputed until the liability is adjudicated and damages assessed by a decree or order of a court or by any other adjudicatory authority. One party to a contract cannot unilaterally assess the damages. But in these cases, the state challenges this proposition based on certain decisions of the apex court. Since these two writ petitions are connected, I am disposing of these two writ petitions by a common judgment. I will first narrate the facts in WP(C) No.31363 of 2009.

2. The petitioner was awarded the construction work of break waters in connection with the Ponnani Fisheries Harbour Project of the State Government. As per the terms of the agreement entered into by the petitioner with the Government in connection with the execution of work referred above, the petitioner ought to have completed the work on or before 31.3.2007. The case of the petitioner is that due to various reasons attributable exclusively to the respondents, the work could not be completed in full within the time stipulated. For completing the remaining part of the work, a minimum period of seven m