The High Court disposed of a writ petition by directing the Kerala Water Authority to pay the due amount of Rs. 19,85,100/- to a contractor within four months, rejecting the defense of financial crisis.
Directing the respondents to pay the amount due to the petitioner within a period of four months.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY,THE 15TH DAY OF DECEMBER 2021/24TH AGRAHAYANA,1943
WP(C) NO. 17146 OF 2021
PETITIONER:
M/S.STANDARD ELECTRICALS, SNDP JUNCTION, MUVATTUPUZHA, REPRESENTED BY ITS PROPRIETOR, GEORGE MATHEW, AGED 65 YEARS, S/O. MATHEW, MUDIYIL HOUSE, ARAKUZHA P.O., MUVATTUPUZHA, PIN – 686 672.
BY ADVS. JOBY JACOB PULICKEKUDY ANIL GEORGE DAJISH JOHN HARIKRISHNAN P.
RESPONDENTS:
BY ADV.SRI.P.BENJAMIN PAUL, SC FOR KWA
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.12.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C)No.17146/2021
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JUDGMENT
Dated this the 15th day of December, 2021
The petitioner is a Contractor engaged by the Kerala Water Authority. The petitioner entered into an agreement for the work of “State Plan 2018-19 – Supply and erection of 120 HP VT Pumpset Adimadakkayam pump house under Karamana reg.” Ext.P1 is the agreement dated 18.02.2019. The work was completed to the satisfaction of the respondents on 13.12.2019, contends the petitioner.
Bill, was generated by the 1st respondent on 13.12.2019. The amount due to the petitioner under Ext.P2 is `19,85,100/-. Inspite of lapse of more than two years, the amount has not been paid. The petitioner submits that the petitioner has taken advances from various financial institutions and is paying heavy interest. Therefore, unless
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WP(C)No.17146/2021
the amount due under Ext.P2 is paid forthwith, the petitioner will be put to untold loss and injury.
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 the petitioner as and when the petitioner's turn arises.
WP(C)No.17146/2021
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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.
In the circumstances, the writ petition is disposed of directing the respondents to pay the amount found due to the petitioner within a period of four months.
Sd/-
N. NAGARESH JUDGE
ncd/15.12.2021
WP(C)No.17146/2021
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APPENDIX OF WP(C) 17146/2021
PETITIONER'S EXHIBITS
Exhibit P1 TRUE PHOTOCOPY OF THE AN AGREEMENT HAS BENN ENTERED BETWEEN THE 2ND RESPONDENT AND THE PETITIONER ON 18.02.2019 WITH AGREEMENT NO. 125 OF 18-19. Exhibit P2 TRUE PHOTOCOPY OF BILL IN FORM FA 9 TOWARDS THE FIRST AND FINAL BILL ISSUED BY THE 1ST RESPONDENT ON 13.12.2019. Exhibit P3 TRUE PHOTOCOPY OF CB3 VOUCHER DATED 17.03.2020 TOWARDS THE FIRST AND FINAL BILL ISSUED BY THE 2ND RESPONDENT ON BEHALF OF THE 1ST RESPONDENT.
3 issues framed by the court
Whether the respondents can delay payment of the dues to the contractor indefinitely due to financial crisis.
Whether a direction for payment of the amount due within a specified period is warranted.
Whether the writ petition successfully challenges the delay in payment.
M/s. Standard Electricals
Kerala Water Authority
The Executive Engineer, Kerala Water Authority
The Finance Manager & Chief Accounts Officer, Kerala Water Authority
N. Nagares
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
