IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K.NARENDRAN, P.G. AJITHKUMAR, JJ.
SITCO Associates, Represented By Its Managing Partner, M.P. Sidheek, S/o. Pareekunju – Petitioner
Versus
State Of Kerala, Represented By Its Secretary To Government and Ors. – Respondents
W.P.(C) No.8407 Of 2022
Decided On : 01-02-2023
No statutes were referenced or discussed in the judgment.
Fact of the Case:
The petitioner submitted a tender for a construction project and was awarded the contract. However, the contract was terminated and the petitioner's security amount was forfeited. The petitioner filed a writ petition seeking to quash the termination and recover the security amount.
Finding of the Court:
The court considered the maintainability of the writ petition and held that since the contract was of a non-statutory nature and the relationship was governed purely by the contract, a writ petition was not the appropriate remedy. The court stated that disputes relating to contractual obligations should be resolved through civil suits. The court cited various precedents to support this position.
Ratio Decidendi: A writ petition is not the proper procedure for adjudicating disputes relating to contractual obligations. Disputes arising from non-statutory contracts should be resolved through civil suits.
Result: The writ petition was dismissed on the ground of maintainability.
JUDGMENT :
(Anil K. Narendran, J.)
The petitioner submitted a tender pursuant to an e-tender notification issued by the 2nd respondent High Power Committee for Implementation of Sabarimala Master Plan, for the construction of a straight walkway including side drain and utility ducts along the trekking path of Chandranandan Road, for a length of 800 meters, in Sabarimala. On 31.01.2018, when the bids were opened, the petitioner was the lowest bidder, who quoted 7.86% below the sanctioned estimate rate, which works out to contract PAC of Rs.3,43,79,519/- against the sanctioned estimate PAC of Rs.3,73,12,263/-. Accordingly, the petitioner was issued with Ext.P1 selection notice dated 25.02.2018 of the 2nd respondent, awarding the contract. By Ext.P1 selection notice, the petitioner was directed to produce a performance guarantee (security deposit) of Rs.17,19,000/- along with a micro-level PERT Chart indicating the milestones of various activities. As per Ext.P1, the petitioner shall complete the work in all respects, on or before 30.09.2018, as per the instructions of the Chief Engineer (General), Travancore Devaswom Board, the Executive Engineer, Sabarimala Development Project and the Assistant Engineer, Sabarimala Master Plan. In terms of Ext.P1 selection notice, the petitioner executed Ext.P2 agreement dated 31.03.2018 with the 2nd respondent High Power Committee. The document marked as Ext.P3 is the schedule of items to Ext.P2 agreement.
2. The petitioner has filed this writ petition, under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P16 proceedings dated 08.02.2022 of the 2nd respondent High Power Committee, whereby the contract awarded to the petitioner stands terminated for re-arranging the work at the risk and cost of the petitioner; and Ext.P17 proceedings dated 23.02.2022 of the 2nd respondent High Power Committee, whereby it was decided to forfeit the security amount of Rs.17,19,000/- plus interest accrued till date and to credit that amount in the account of the Member Secretary of the High Power Committee. The further relief sought for is a writ of mandamus commanding the respondents to relieve the petitioner from Ext.P2 agreement, by executing a closure agreement, on returning the Earnest Money Deposit of Rs.1,00,000/- and security amount of Rs.17,19,000/-, forthwith.
3. On 14.03.2022, when this writ petition came up for admission, the learned Standing Counsel for the 2nd respondent High Power Committee and also the learned Standing Counsel for the Travancore Devaswom Board were directed to get instructions.
4. A counter affidavit on behalf of the 2nd respondent High Power Committee is placed on record, on 27.06.2022. The petitioner has filed a reply affidavit dated 08.12.2022.
5. On 15.12.2022, when this writ petition came up for consideration, the learned Standing Counsel for the 2nd respondent High Power Committee submitted that the project in question, which was a Central Government funded project, has already been dropped due to the delay in execution of the work by the petitioner. The learned Standing Counsel submitted that an additional counter affidavit of the 2nd respondent shall be placed on record within two weeks. By the order dated 15.12.2022, the learned Standing Counsel for Travancore Devaswom Board was directed to get instructions as to whether the petitioner has been awarded with any other contracts at Sabarimala or in any other temples under the management of the Travancore Devaswom Board.
6. On 03.01.2023, an additional counter affidavit on behalf of the 2nd respondent High Power Committee was placed on record. The petitioner has filed a reply affidavit dated 27.01.2023 to that additional counter affidavit.
7. Heard the learned counsel for the petitioner, the learned Senior Government Pleader for the 1st respondent State, the learned Standing Counsel for the 2nd respondent High Power Committee and also the learned Standing Counsel for Travancore Devaswom Board for
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A writ petition is not the appropriate remedy for disputes relating to contractual obligations. Such disputes should be resolved through civil suits.
Reimbursement of amount - Entitlement of - Grant of relief of this nature would virtually amount to a money decree. Petitioner is at liberty to take recourse to remedies available by raising such a c....
The power of the High Court under Article 226 of the Constitution is plenary in nature, and the court has the discretion to entertain a writ application in spite of an alternative remedy being availa....
The main legal point established in the judgment is that in contractual matters, the court may not entertain a writ petition if there is a public law element, and the parties should resort to the con....
The court reinforced that the existence of an arbitration clause limits the scope for judicial intervention in contractual disputes involving the state.
The court emphasized the importance of honoring contractual agreements and the need for parties to adhere to the terms of the contract. It also highlighted the significance of approaching the compete....
The court affirmed that contractual obligations must be honored when supported by competent authority approvals and committee recommendations, reinforcing the binding nature of such decisions.
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