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2026 Supreme(Online)(Ker) 26279

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J
SHAJI MATHEW – Appellant
Versus
STATE OF KERALA REPRESENTED BY CHIEF SECRETARY TO GOVERNMENT – Respondent
WP(C) NO. 14740 OF 2026



Advocates:
For the Appellants/Petitioners: SRI.GEORGE A.CHERIAN, SHRI.RUBIN SHIBU, SMT.LATHA SUSAN CHERIAN, SRI.K.JACOB MATHEW, SMT.ARATHI PRABHAKARAN, SMT.ANNA ROSE NAMBADAN, SMT.ROSANNA C. WILSON, SMT.ANNA JOHNSON
For the Respondents: SHRI.BINOY DAVIS, G.P

Court directs consideration of contractor's price escalation claim due to war-induced bitumen price rise, following prior precedents.

Headnote:The petitioner, a contractor, entered into an agreement for road improvement works including provision of bitumen macadam and bitumen concrete to a bridge. Due to war-induced price escalation of bitumen and allied products, continuation at contracted rates became unviable. Prior government orders (Exts.P2-P4) had granted relief in similar 2018 circumstances and COVID-19 context (Ext.P5). Court directed consideration of pending representation (Ext.P6). Issue framed: Whether price escalation warrants relief from contract obligations or rate revision, analogous to past precedents. Ratio: Government must consider representations on merits, affording hearing, as done previously for comparable exigencies. Writ petition disposed directing 2nd respondent to consider Ext.P6 and pass orders within one month after hearing petitioner.

Table of Content
1. contractor seeks price escalation due to bitumen price rise from war. (Para 1)
2. relies on prior government orders for similar relief. (Para 2)

JUDGMENT

The petitioner is a contractor who was entrusted with the work named “General Balance work S/F 2122, improvements and providing BM and BC to Varattar Bridge in M.C.Road to Kallissery-Eraviperoor Road”. The agreement was executed on 25.06.2025. The grievance of the petitioner is that, on account of the war situation the price of bitumen and other allied products has increased considerably and therefore the petitioner is finding it difficult to continue with the work with the present rates. Therefore, the petitioner seeks escalation of price or to be relieved from the obligations of the contract, without the risk and cost.

2. The petitioner points out that, earlier when similar situation arose in the year 2018, the respondents considered the same in favour of the contractors and issued Exts.P2, P3 and P4 Government Orders for redressing their grievances. Therefore the petitioner seeks similar consideration even in this case also. Now the petitioner has highlighted his grievances in Ext.P6 representation which is now pending before the 2nd respondent. The limited relief sought by the petitioner is to direct the 2nd respondent to consider the said representation and pass appropriate orders thereon.

After hearing the learned Senior Counsel for the petitioner and the learned Government Pleader for the respondents, I am inclined to dispose of this writ petition. Accordingly, it is ordered that, the 2nd respondent shall take up Ext.P6 and appropriate orders thereon shall be passed, in accordance with law, after giving the petitioner an opportunity for being heard, within a period of one month from the date of receipt of a copy of this judgment.

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