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2021 Supreme(Online)(KER) 28469

HIGH COURT OF KERALA
N. NAGARESH, J
MKMS BUILDERS – Appellant
Versus
STATE OF KERALA – Respondent
WP(C)/9585/2020



Advocates:
SRI.T.SANJAY, SRI.K.V.MANOJ KUMAR

Parties to a contract must utilize the dispute resolution mechanisms established in the contract before seeking judicial intervention.

Headnote:

Contract - Writ Petitions - General Conditions of Contract, Clause 24(2) - Dispute Resolution Under Contractual Framework

Fact of the Case:

The petitioner filed writ petitions challenging the termination of a contract, the claim on a bank guarantee, and the subsequent retendering of the work.

Finding of the Court:

The court directed the petitioner to seek remedies available under the contract, specifically invoking Clause 24(2) of the General Conditions of Contract.

Issues: Whether the petitioner had grounds to challenge the contract termination and the actions taken regarding the bank guarantee and retendering.

Ratio Decidendi: The court emphasized contractual provisions requiring parties to resolve disputes through specified contractual mechanisms before approaching the court.

Final Decision: The writ petitions were disposed, directing the petitioner to use the contractual dispute resolution mechanism.

J U D G M E N T

~ ~ ~ ~ ~ ~ ~ ~ ~

Dated this the 24th day of February, 2021 [WP(C) Nos.6762 & 9585 of 2020]

These writ petitions have been filed by the petitioner against termination of the contract, realisation of Bank Guarantee and re-tender of the work.

2. When this matter came up today, it was submitted at the Bar that the work in question has already been retendered. If the petitioner has any dispute regarding the termination of the contract, re-tender or realisation of Bank Guarantee, the petitioner can invoke Clause 24(2) of the General Conditions of the Contract in Ext.P10 to resolve the same.

In the circumstances, relegating the petitioner to avail the said remedy available under the contract, these writ petitions are disposed of.

Sd/-

N. NAGARESH, JUDGE aks/24.02.2021 APPENDIX OF WP(C) 6762/2020 PETITIONER'S EXHIBITS:

EXHIBIT P1 A TRUE PHOTOCOPY OF THE LETTER OF AWARD.

EXHIBIT P2 A TRUE COPY OF THE AGREEMENT DATED

10/05/2018 ENTERED INTO BETWEEN THE PETITIONER AND THE 1ST RESPONDENT, AWARDING THE WORK.

EXHIBIT P3 A TRUE COPY OF THE PERFORMANCE SECURITY DATED 25/04/2018.

EXHIBIT P4 A TRUE COPY OF THE AGREEMENT DATED

6/5/2019.

EXHIBIT P5 A TRUE COPY OF THE SCHEDULE REFLECTING THE DELAY MADE IN THE PAYMENTS.

EXHIBIT P6 A TRUE COPY OF THE RECEIPT OF THE COMPLAINT DATED 15/02/2020.

EXHIBIT P7 A TRUE COPY OF THE SHOW CAUSE NOTICE IN REGARD TO THE DELAY OF WORK.

EXHIBIT P8 A TRUE COPY OF THE REPLY DATED

17/02/2020.

EXHIBIT P9 A TRUE COPY OF THE DETAILED REPLY TO THE SHOW CAUSE NOTICE TO BE HANDED OVER TO THE RESPONDENT.

EXHIBIT P10 A TRUE COPY OF THE SECTION 6 OF General Conditions of Contract OF TENDER NO.KITE/CLUSTER - 6/01.

EXHIBIT P11 A TRUE COPY OF THE TERMINATION LETTER DATED 26/2/2020, SENT VIA EMAIL.

EXHIBIT P12 A TRUE COPY OF THE ORDER ISSUED BY THE

3RD RESPONDENT DATED 27.01.2020.

EXHIBIT P13 A TRUE COPY OF THE ORDER ISSUED BY THE

3RD RESPONDENT DATED 17.02.2020.

EXHIBIT P14 A TRUE COPY OF THE SUPPLEMENTARY AGREEMENT DATED 03.02.2020 ENTERED INTO BY KERALA INFRASTRUCTURE AND TECHNOLOGY FOR EDUCATION (KITE) AND THE PETITIONER BUILDER.

EXHIBIT P15 THE PHOTOGRAPH OF THE ADMINITRATIVE BLOCK OF THE MADRAS HIGH COURT ALONG WITH THE RELEVANT TESTIMONIAL.

EXHIBIT P16 THE PHOTOGRAPH DEPICTING THE ODISHA BHAVAN IN TAMIL NADU ALONG WITH THE RELEVANT TESTIMONIAL.

EXHIBIT P17 THE PHOTOGRAPH OF THE SRI RAMACHANDRA MEDICAL COLLEGE PG HOSTEL CONSTRUCTED BY THE PETITIONER BUILDER ALONG WITH THE RELEVANT TESTIMONIAL.

EXHIBIT P18 THE PHOTOGRAPH OF THE TAMIL NADU GOVERNMENT DENTAL COLLEGE AND HOSPITAL, CHENNAI CONSTRUCTED BY THE PETITIONER BUILDER ALONG WITH THE RELEVANT TESTIMONIAL.

EXHIBIT P19 TRUE COPY OF THE WORK SCHEDULE WITH REGARD TO GOVERNMENT HIGHER SECONDARY SCHOOL VECHOOCHIRA COLONY.

EXHIBIT P20 TRUE COPY OF THE WORK SCHEDULE WITH REGARD TO GOVERNMENT BOYS HIGHER SECONDARY SCHOOL ADOOR, ADOOR.

EXHIBIT P21 TRUE COPY OF THE WORK SCHEDULE WITH REGARD TO KANNASSA SMARAKA G.H.S.S.

KADAPRA.

EXHIBIT P22 TRUE COPY OF THE WORK SCHEDULE WITH REGARD TO G.H.S.S KOZHENCHERRY.

EXHIBIT P22(A) TRUE COPY OF THE WORK SCHEDULE WITH REGARD TO G.H.S.S. KONNI.

EXHIBIT P23 PHOTOGRAPH OF THE CONSTRUCTION WORK FOR THE GOVERNMENT BOYS H.S.S ADOOR.

EXHIBIT P24 PHOTOGRAPH OF THE CONSTRUCTION WORK FOR THE GOVERNMENT H.S.S KONNI.

EXHIBIT P25 PHOTOGRAPH OF THE C0NSTRUCTION WORK FOR THE GOVERNMENT H.S.S VECHOOCHIRA.

EXHIBIT P26 PHOTOGRAPH OF THE CONSTRUCTION WORK FOR THE KANASSA SMARAKA G.H.S.S KADAPRA.

EXHIBIT P27 PHOTOGRAPH OF THE CONSTRUCTION WORK FOR THE G.H.S.S, KOZHENCHERY.

EXHIBIT P28 TRUE COPY OF THE TENDER NOTICE PUBLISHED IN THE WEBSITE.

EXHIBIT P29 THE TRUE COPY OF THE EMAIL SENT TO THE PETITIONER DATED 13.03.2020.

EXHIBIT P30 TRUE COPY OF THE EMAIL DATED

17.02.2020 SENT BY THE PETITIONER TO THE RESPONDENT 1-2 AND THE PERSONAL EMAIL OF THE 3RD RESPONDENT.

EXHIBIT P31 TRUE COPY OF THE AGREEMENTS PREPARED ON THE STAMP PAPER DATED 30.01.2020 FOR THE KANASSA SMARAKA GHSS, KADAPRA.

EXHIBIT P31(a) TRUE COPY OF THE AGREEMENTS PREPARED ON THE STAMP PAPER DATED 30.01.2020 FOR THE GHS KOZHENCHERR

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