DEVAN RAMACHANDRAN
Varghese Scaria, S/o. P. T. Scaria – Appellant
Versus
State of Kerala, Represented by the Chief Secretary – Respondent
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, wo
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.
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