Disposed

George Mathew v. State of Kerala

Kerala HC4 Dec 2021WP(C)/16958/2021

Case brief

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What is this about?

The petitioner, a Public Works Department contractor, filed a writ petition for non-payment of dues from a completed water supply project. The respondent Authority cited financial crisis as the reason for delay. The Court held that it cannot use financial emergency to indefinitely delay payment and directed a 50% advance payment.

What did the court decide?

Directing respondents to pay 50% of the amount due on or before 31.03.2022 and the balance 50% within two months thereafter.

George Mathew Vs State of Kerala — Contract and Commercial Disputes | Kerala HC (2021)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR.JUSTICE N.NAGARESH

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SATURDAY, THE 4^TH DAY OF DECEMBER 2021/13TH AGRAHAYANA, 1943 WP(C) NO. 16958 OF 2021

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PETITIONER:

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GEORGE MATHEW, AGED 57 YEARS, S/O. MATHEW, EDAPAZHATHIL HOSUE, MANJALLOOR, VAZHAKULAM P.O., MUVATTUPUZHA, ERNAKULAM DISTRICT-686 670.

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BY ADVS. GEORGE MATHEW PRAVEEN S. M.D.SASIKUMARAN SUNIL KUMAR A.G DIPU JAMES ELSA DENNY PINDIS MATHEW K.T. GEORGE K.V. STEPHY K REGI

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RESPONDENTS:

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1 STATE OF KERALA, REPRESENTED BY ITS SECRETARY, WATER RESOURCES DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695 001.

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2 KERALA WATER AUTHORITY, REP. BY ITS MANAGING DIRECTOR, HEAD OFFICE, JALA BHAVAN, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033.

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3 SUPERINTENDING ENGINEER, KERALA WATER AUTHORITY, PUBLIC HEALTH CIRCLE, MALAPPURAM-676 505.

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4 EXECUTIVE ENGINEER, KERALA WATER AUTHORITY, PROJECT DIVISION,

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WP(C)No.16958/2021

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MALAPPURAM-676 505.

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5 THE FINANCE MANAGER & CHIEF ACCOUNTS OFFICER, KERALA WATER AUTHORITY, JALABHAVAN, VELLAYAMBALAM, THIRUVANANTHAPURAM-695 033.

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BY ADVS.

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R1 - SMT.VINITHA B., SR.G.P. R2-R5 SHRI.P.BENJAMIN PAUL, SC

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 04.12.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WP(C)No.16958/2021

JUDGMENT

Dated this the 4^th day of December, 2021

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The petitioner is an 'A' Class PWD Contractor. The petitioner undertook the work of “State Plan – 2019-20 – Rural Water Supply Scheme – Water Supply Scheme to Cheekode and adjoining Villages – Package-II – laying balance distribution lines to Vazhayur and Vazhakkad Panchayaths in Malappuram District”.

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The work was for amount of `6,41,00,000/-

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(Rupees Six crore forty one lakhs only). The petitioner executed an agreement on 05.11.2020 with the 3^rd respondent. The 4^th respondent is the implementing agency and the 5^th respondent has to release fund for the work.

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The petitioner commenced the work and completed the same on 26.11.2021. Inspite of the completion of the work, the amount due to the petitioner has not been

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paid. The petitioner would submit that an amount `2,15,56,835/- (Rupees Two crore fifteen lakhs fifty six thousand eight hundred and thirty five only) is due to him under the Part Bill. The amount has not been paid so far. The petitioner has raised funds borrowing from private financial sources. Unless the amount is paid, the petitioner will be put to great hardship.

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The learned Standing Counsel for the respondents entered appearance and stated that the Kerala Water Authority is facing acute financial crisis now and they are not in a position to honour all bills submitted by various contractors at one go. The KWA has adopted a criteria and is making payments to the contractors on the basis of such criteria. The petitioner will be paid the amount due to him as and when his turn arises.

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I have heard the learned counsel for the petitioner and the learned Standing Counsel representing the respondents.

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The fact that the petitioner has executed an agreement with the KWA and has completed the work as per the agreement, is not disputed. The petitioner has raised Bills for the completed work. The only reason advanced by the respondents for delay in payment is the financial crisis of the KWA. This Court is of the considered view that after extracting the work from the petitioner, the KWA cannot delay payments due to the petitioner for an indefinite period.

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In the circumstances, the writ petition is disposed of directing the respondents to pay the 50% amount found due to the petitioner on or before 31.03.2022 and the balance 50% amount within another two months thereafter.

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Sd/- N. NAGARESH JUDGE

ncd/04.12.2021

APPENDIX OF WP(C) 16958/2021

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PETITIONER'S EXHIBITS

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Exhibit P1 TRUE COPY OF PERFORMA FOR FUND REQUEST ALONG WITH FORWARDING LETTER NO.KWA/PROJ/MPM/HC/24/2021 DATED 15.7.2021 ISSUED BY 4TH RESPONDENT TO 5TH RESPONDENT.

George Mathew v. State of Kerala

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George Mathew v. State of Kerala

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