The applicability of government orders to contracts depends on explicit incorporation in the agreement; absent this, the order cannot be enforced.

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A.

TH WEDNESDAY, THE 18 DAY OF FEBRUARY 2026 / 29TH MAGHA, 1947 WP(C) NO. 19914 OF 2024 PETITIONER/S:

SOUTH INDIAN CONSTRUCTIONS PVT. LTD REPRESENTED BY ITS MANAGING DIRECTOR R. VINOD KUMAR, S/O. RAGHAVAN, AGED 51 YEARS, VAWAKKAVU (P.O.), KARUNAGAPPALLY, KOLLAM, PIN - 690528 BY ADVS.

SRI.C.UNNIKRISHNAN (KOLLAM)

SRI.NIDHI BALACHANDRAN SMT.UTHARA A.S SHRI VIJAYKRISHNAN S. MENON SHRI.GOUTHAM KRISHNA U.B.

SHRI.VIVEK NAIR P.

SMT.SRUTHI SINDHU SHRI.M.R.RADHAKRISHNAN SHRI.PRAVEEN P.

SRI.D.JAYAKRISHNAN RESPONDENT/S:

1 KERALA INFRASTRUCTURE & TECHNOLOGY FOR EDUCATION (KITE)

REPRESENTED BY IT'S CHIEF EXECUTIVE OFFICER, SCERT BUILDING, POOJAPPURA, THIRUVANANTHAPURAM, PIN - 695012

2 THE CHIEF EXECUTIVE OFFICER KERALA INFRASTRUCTURE INVESTMENT FUND BOARD (KIIFB), 2ND FLOOR, FELICITY SQUARE, KODER LN., PALAYAM, THIRUVANANTHAPURAM, PIN - 695001 BY ADVS.

SMT.V.A.HARITHA SMT. MIDHUNA BHASKAR OTHER PRESENT:

SHRI.S.CHANDRASEKHARAN NAIR, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 18.02.2026, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

J U D G M E N T

Petitioner is a company and was entrusted with works as per Ext.P1 to P3 agreements executed between the petitioner and the 1^st respondent. Those works were related to the modernization of schools to international standards as center of excellence. As per Ext.P1 to P3, altogether 11 schools were to be modified in different districts. All the aforesaid works were the balance works, in respect of which, there were originally contracts entered into between the 1^st respondent and some other contractors.

2. During the process of execution of the original contracts, certain discrepancies were found in fulfilling the obligations under the contract by the respective contractors and it resulted in termination of the said contracts at the risk and costs of the respective contractors. The tender notifications based on which Ext.P1 to P3 were entered into, were published as a consequence of such termination of such contracts at the risk and costs of the respective contractors. 3. The petitioner had completed the work as per the terms and conditions in the contract, but the entire amount payable to the petitioner has not been released. When the claim for the same was made, an objection was raised by the 2^nd respondent, KIIFB, which is the funding agency, in connection with the price escalation claimed in the bills for the additional quantities of work carried out by the petitioner in excess of 25% of the agreed quantity. The KIIFB insisted that Ext.P5 Government Order bearing No.G.O.P.No.54/2019/Fin dated 04.05.2019 has to be made applicable as far as the fixing the rate for the excess quantity and extra items of works are concerned.

4. However, acting upon the representation submitted by the petitioner before 1^st respondent, Ext.P6 was issued clarifying that, the 1^st respondent had decided not to implement Ext.P5 Government Order in respect of the re- tendered works in which, original contracts were terminated at the risk and costs of the respective contractors.

5. Apparently, a clarification was sought by the 2nd respondent with respect to the said stand, from the 1^st respondent and Ext.P7 was issued by the 1^st respondent in response to the same, where, the circumstances under which, Ext.P6 decision was taken, were clearly mentioned. Ext.P7 would indicate that, a conscious decision has been taken based on the technical, financial and legal advice received by the 1st respondent from the competent authorities. The grievances of the petitioner is that, despite the fact that 1^st respondent had made the stand clear that the Ext.P5 Government Order is not applicable to the contract, the payment receivable to the petitioner was denied and it was these in the circumstance this writ petition was submitted seeking the following reliefs: i Declare that Exhibit P5 Government Order is not applicable to the works executed as pe