IN THE HIGH COURT OF KERALA AT ERNAKULAM
DEVAN RAMACHANDRAN, J.
Varghese Scaria, S/o. P.T. Scaria & Ors. - Petitioners
Versus
The State of Kerala, Represented by the Chief Secretary & Ors. - Respondents
WP(C) Nos. 25233, 32096 of 2022, WP(C) No. 32568 of 2023
Decided On : 25-01-2024
Government Orders - Contractors' Entitlement to Benefits - 13.11.2018, 17.04.2020, 25.09.2020, 30.04.2021 - The judgment discusses the entitlement of contractors to claim the difference in the cost of bitumen based on specific Government Orders. It highlights the conditions and categories of contractors eligible for the benefits under the mentioned Government Orders and emphasizes that the benefits were intended only for ongoing projects as of 01.11.2018. The court's decision is influenced by the interpretation of the Government Orders and the classification of contractors eligible for the benefits.
Fact of the Case:
The petitioners, contractors, claimed entitlement to benefits under specific Government Orders related to the cost of bitumen. The Government argued that the benefits were intended only for contractors with ongoing projects as of 01.11.2018.
Finding of the Court:
The court found that the benefits under the Government Orders were intended only for contractors with ongoing projects as of 01.11.2018 and that the subsequent Government Order did not extend the benefits to contractors who entered into contracts after that date.
Issues: Entitlement of contractors to claim benefits under specific Government Orders related to the cost of bitumen.
Ratio Decidendi: The benefits under the Government Orders were intended only for contractors with ongoing projects as of 01.11.2018, and subsequent orders did not extend the benefits to contractors who entered into contracts after that date.
Final Decision: The writ petitions are dismissed, without any further orders.
JUDGMENT :
The petitioners in these cases are contractors who have entered into contracts with the Public Works Department (PWD)of the Government of Kerala, qua road work involving bitumen.
2. The petitioners assert that as per four Government Orders, namely, the ones dated 13.11.2018, 17.04.2020, 25.09.2020 and 30.04.2021, certain specific benefits were given to all the contractors, which enabled them to claim the difference of the cost of bitumen between the date of the Agreement and the date of invoice; and that though the Authorities had granted such benefits to various others, they have been singled out and discriminated, in being denied it.
3. Smt. R. Ranjanie – learned counsel appearing for the petitioners in WP(C) No.32096/2022, assertively argued that the flow of benefit from the afore four Government Orders clearly was available to her client - whose Agreement was entered into on 17.11.2022, which is evident from Exts.P8, P13, P15 and P16 - but that it has not been afforded to him, though; through the subsequent Government Order dated 26.08.2022, the Government made it clear that the payment of the price difference, as ordered in the aforementioned four Government Orders, would stand withdrawn with retrospective effect, but for all future tenders alone. She, therefore argued that her client is entitled to claim the benefits, as admitted in Ext.P8; and thus, prayed that the respondents be directed to disburse the amount mentioned therein without any avoidable delay.
4. Sri. R.T. Pradeep, Sri. Abdul Rasac and the learned counsel appearing for petitioners in WP(C) Nos.32568/2023 and 25233/2022 also made analogous assertions, contending that their clients are also entitled to the benefit of the difference of cost of bitumen, under the aforementioned four Government Orders. They also, therefore, prayed that the reliefs sought for in their respective writ petition be granted.
5. However, in response, Sri. K.V. Manojkumar – learned Government Pleader, submitted that the petitioners cannot impel any claim, as has been done in these cases at this time because, in the judgment delivered in M/s Malabar Tech v. State of Kerala [WP(C) No.22964/2021], a learned Judge of this Court has made it indubitably limpid that the benefits of the aforementioned Government Orders are intended only for those contractors who were continuing with their work as on 01.11.2018. He submitted that, when the said declaration remains without modification, or without challenge, it would not be available to the petitioners to argue to the contrary and to claim such benefit, even when they admit unequivocally that none of their works contracted were continuing as on 01.11.2018; especially when, even the tendering processes, based on which such contracts were given, were much after that date. He, therefore, prayed that these writ petitions be dismissed.
6. Though I have been parsimonious to some extent in recording the pleaded factual details and the submissions made on behalf of the parties, I have indited the essential aspects projected in these cases.
7. As noticed, the controversy in these cases has its genesis in an admitted price escalation of bitumen, which was noticed by the Government in the year, 2018, which lead them to issue the aforementioned order, one after the other.
8. For the sake of convenience, except otherwise specified, exhibits will be referred to in the judgment as they appear in WP(C) No.25233/2022.
9. When one examines the first of the Government Orders referred to and relied upon by the petitioners, namely that dated 13.11.2018 – produced as Ext.P1 - the Government allowed the benefit therein to the contractors because, the price of bitumen, as on April, 2018 was found to have increased by 33% and therefore, it was clarified that the price difference of bitumen on the date of closing of the tenders and the date of invoice – specifying such invoice date to be on or after 01.11.2018 – will be paid to the contractor, on production of the ori
AI
The entitlement of contractors to claim benefits under specific Government Orders is determined by the conditions and categories of contractors eligible for the benefits as specified in the orders.
Section 56 of Indian Contract Act, 1872 makes it clear that an agreement to do an act impossible in itself is void.
The main legal point established in the judgment is that the benefits conferred by Government Orders extending relaxation in performance security and related guarantees were intended for contractors ....
The applicability of government orders to contracts depends on explicit incorporation in the agreement; absent this, the order cannot be enforced.
The court upheld the constitutionality of government orders granting price preference to Labour Contract Co-operative Societies in public tenders, affirming limited judicial review in contractual mat....
Mandamus issued to direct expeditious decision on contractor's rate escalation representation due to material price surge.
The court ruled that escalation of prices for procurement of minor minerals is permissible where the designated quarry was closed due to external factors, contradicting the initial denial based on a ....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.