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2026 Supreme(Online)(Ker) 8088

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J
M/S.MANSIONS – Appellant
Versus
COCHIN SMART MISSION LIMITED – Respondent
WP(C) NO. 32353 OF 2024



Advocates:
For the Appellants/Petitioners: SRI.RANJITH VARGHESE, SMT.SANTHA VARGHESE, SRI.RAHUL VARGHESE, SRI.K.L.VARGHESE (SR.), SHRI.RANJAN BABU JOSEPH, SHRI.GEO KENNEDY K.
For the Respondents: SMT.M.U.VIJAYALAKSHMI, SHRI.AMITH KRISHNAN H., SRI.K.JAJU BABU (SR.), SHRI.B.G.HARINDRANATH, SC, KIIFB, SMT.P.DEVIKRISHNA, MS.GAYATHRI C.H., SMT.ANNA MARY MATHEW

The court emphasized the necessity of releasing undisputed contractual payments while advising against pursuing unresolved disputes in writ petitions.

Headnote:In this judgment, the High Court of Kerala addressed the claims of a contractor regarding unpaid amounts under a government construction contract. The petitioner sought relief through mandamus to recover various payments amidst disputes over some claims, including GST reimbursements and contributions. The court determined that undisputed amounts must be released, while other disputes should follow prescribed resolution mechanisms. The court ordered the prompt disbursement of specific approved sums within a month and recognized the need for further documentation for additional claims.

Table of Content
1. contractor's grievance over unpaid amounts. (Para 1)
2. acknowledgment of some admitted claims. (Para 2)
3. dispute resolution mechanisms discussed. (Para 3)
4. court orders approval and disbursement of undisputed claims. (Para 4)

JUDGMENT

This writ petition is submitted by the petitioner, a contractor who entered into an agreement (Ext.P20) with the 2nd respondent, for construction of Cancer Specialty Block for Government Hospital, Ernakulam. The execution of contract by the 2nd respondent was in their capacity as the consultants of the 1st respondent-Cochin Smart Mission Ltd. To be precise, the 2nd respondent was the project management consultant and the amounts are to be disbursed by the 1st respondent. Thereafter, a tripartite agreement was entered into between petitioner, the 1st respondent and the 2nd respondent in respect of the same as well. The grievance of the petitioner is that, even though the petitioner had completed the work as evidenced by Ext.P1, the amounts payable to the petitioner were not completely released. The writ petition was submitted in this circumstances, seeking the following reliefs:

“(i) Issue a writ of mandamus or any other appropriate writ, order or direction, directing the 1st Respondent to release and pay an amount of Rs. 54,88,271/- inclusive of GST as per the built in price variation clause in the agreement under Clause 10 CA and 10 CC, forming part of the agreement.

(ii) Issue a writ of mandamus or any other appropriate writ, order or direction, commanding the 1st Respondent to release an amount of Rs. 2,56,802/- being reimbursement of balance GST amount paid at 18% over and above 12% already paid by the Respondent to the Petitioner on RA Bill No. 10 as per the agreement.

(iii) Issue a writ of mandamus or any other appropriate writ, order or direction, directing the 1st Respondent to pay an amount of Rs. 4,77,357/- being reimbursement of ESI and EPF contributions which are to be released to the Petitioner as per Clause 19 (L) of the agreement.

(iv) Issue a writ of mandamus or any other appropriate writ, order or direction, directing the 1st Respondent to pay an amount of Rs. 9,63,759/- being interest due on the aforesaid amounts under Reliefs (i) to (iii) as per Clause 7 of the Contract Conditions, being interest due on delay in payment of RA Bills, upto 15th August 2024 and future interest, if any, if not paid by that time.

(v) Issue a writ of mandamus or any other appropriate writ, order or direction, directing the 1st Respondent to pay an amount of Rs. 32,61,021/- due to the Petitioner as per Clause 15 of the Contract Conditions and as referred to settlement by the Dispute Redressal Committee set up by the 2nd Respondent-Consultant and in case Dispute Redressal Committee fails to take a decision favourable to the Petitioner as sought for.

(vi) Issue a writ of mandamus or any other appropriate writ, order or direction, directing the 1st Respondent to pay other amounts, if any found due, during the course of pendency of the writ petition for hearing with interest thereof at usual bank rate. (vii) Grant costs to the Petitioner and such other reliefs as are prayed for and deemed fit to be granted in the circumstances of the case.”

2. Separate counter affidavits were submitted by the 1st and 2nd respondents, wherein, the amounts under certain heads were admitted, whereas, with regard to the certain heads disputes were raised by the respondents. The respondents raised objection with regard to the maintainability of this writ petition, as according to the respondents, an alternate dispute resolution mechanism is contemplated as per Ext.P2 agreement.

3. As far as the admitted heads are concerned, the same pertain to an amount of Rs.54,88,271/- as per Clause 10 CA and 10 CC of the General Contract Conditions (GCC), which are included in Ext.P20 agreement. Apart from the above, there is no serious dispute with regard to the ESI and EPF contribution and also the variation in the rate of GS

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