M/S. Chendur Infrastructure Pvt. Ltd vs Kochi Metro Rail Limited (Kmrl)

Citation : 2025 Latest Caselaw 2244 Ker
Judgement Date : 5 August, 2025

Kerala High Court

M/S. Chendur Infrastructure Pvt. Ltd vs Kochi Metro Rail Limited (Kmrl) on 5 August, 2025

Author: N.Nagaresh
Bench: N.Nagaresh
                                                        2025:KER:58264


               IN THE HIGH COURT OF KERALA AT ERNAKULAM

                               PRESENT

                 THE HONOURABLE MR.JUSTICE N.NAGARESH

     TUESDAY, THE 5TH DAY OF AUGUST 2025 / 14TH SRAVANA, 1947

                       WP(C) NO. 23135 OF 2025

PETITIONER:

          M/S. CHENDUR INFRASTRUCTURE PVT. LTD
          REGISTERED OFFICE AT NO. 45, D-BLOCK,
          ANNA NAGAR EAST, CHENNAI ,
          REPRESENTED BY ITS MANAGING DIRECTOR,
          MS. SHANMUGA PRIYA, PIN - 600102


          BY ADVS.
          SHRI.RAFEEK. V.K.
          SMT.NISHNA P.T.
          SMT.ANNLIYA FLEMIN
          SMT.LYDIA ELIZABETH KOVOOR
          SMT.MUFEEDHA P.
          SHRI.ABDUL RAHOOF P.M.
          SRI.SHAHIM BIN AZIZ
          SHRI.MOHAMMED SHAFI.K
          SMT.O.A.NURIYA


RESPONDENTS:

    1     KOCHI METRO RAIL LIMITED (KMRL)
          REPRESENTED BY ITS MANAGING DIRECTOR,
          REGISTERED OFFICE AT REVENUE TOWER,
          PARK AVENUE, KOCHI, PIN - 682011

    2     THE GENERAL MANAGER (PROJECTS)
          KOCHI METRO RAIL LIMITED,
          REGISTERED OFFICE AT REVENUE TOWER,
          PARK AVENUE, KOCHI, PIN - 682011


          BY ADVS.
                                             2025:KER:58264
W.P.(C) No.23135/2025
                             :2:


           SMT.A.K.PREETHA
           SRI.C.ANIL KUMAR
           SMT.DEVIKA MOHAN
           SMT.RESHMA R.KRISHNAN


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.07.2025, THE COURT ON 05.08.2025 DELIVERED
THE FOLLOWING:
                                                                   2025:KER:58264
W.P.(C) No.23135/2025
                                       :3:


                            N. NAGARESH, J.

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                      W.P.(C) No.23135 of 2025

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                Dated this the 5th day of August, 2025


                             JUDGMENT

~~~~~~~~~ The petitioner is a civil infrastructure company. The petitioner was granted Ext.P1 contract by the respondents for the construction of entry and exit building at Kakkanad junction and Cochin SEZ Metro Station. The contract is of the value ₹25,23,55,968/-. The petitioner submitted Ext.P2 performance guarantee and executed Ext.P3 agreement.

2. The petitioner states that the site was handed over on 20.03.2023. However, the respondents issued first set of Good For Construction (GFC) drawing only on 03.08.2023. There was an initial delay of 143 days. Immediately, the petitioner started work. The respondents were not prompt in 2025:KER:58264 W.P.(C) No.23135/2025 :4: issuing drawings. The most recent drawing was issued only on 09.04.2025. The progress of the work was adversely affected due to the delayed issuance of GFC.

3. the petitioner states that they encountered site constraints including persistent waterlogging which repeatedly submerged the site. Knowing the ground realities, the respondents granted extension of time up to 31.08.2024 without levy of fine / liquidated damages as per Ext.P7. Later, further extension of time was granted up to 28.02.2025 and then up to 13.06.2025.

4. On 10.04.2024, the respondents issued Ext.P9 notice alleging delay and threatening termination of contract. The petitioner submitted Ext.P10 reply. The respondents, however, terminated the contract as per Ext.P12 order dated 12.06.2025, forfeiting the performance guarantee of ₹75,70,679/-. The petitioner states that he has completed 70% of the contracted works and the impugned termination when an application for extension of time was pending is illegal 2025:KER:58264 W.P.(C) No.23135/2025 :5: and unjustified.

5. The 1st respondent-Kochi Metro Rail Limited resisted the writ petition. In their statement dated 06.07.2025, the 1st respondent stated that time was the essence of the contract and the petitioner was given 12 months time to complete the work. The structural drawings were handed over to the petitioner since 03.08.2023. In view of the delay in issuing drawings, the petitioner was granted extension for completion of the contract up to 31.08.2024 without imposing liquidated damages. Even thereafter, extensions were granted at the request of the petitioner at multiple times.

6. The delay in execution of the project is not on account of any fault on the part of the 1st respondent. The petitioner was issued letters requiring to complete the work expeditiously. The petitioner failed to deploy resources at site. No construction activities were taking place during the past 5- 6 months. The petitioner was non responsive. The 1st respondent therefore terminated the contract.

2025:KER:58264 W.P.(C) No.23135/2025 :6:

7. I have heard the learned counsel for the petitioner and the learned counsel appearing for the respondents.

8. It is evident from the pleadings and arguments that a Letter of Acceptance was issued by the respondent on 13.03.2023 and the agreement was executed on 07.06.2023. The site was handed over on 20.03.2023. Stage wise structural drawings were handed over to the petitioner since 03.08.2023. The respondents have taken note of the delay in issuing structural drawings and hence granted extension for date of completion up to 31.08.2024 without imposing any liquidated damages.

9. Even thereafter, the petitioner failed to complete the work. The time was extended again up to 17.12.2024 then up to 28.02.2025 and again up to 13.06.2025. Even in the month of July, 2025, pile cap and tie beams work was not fully completed and the work did not progress beyond construction of piles, in respect of the work at Kakkanad 2025:KER:58264 W.P.(C) No.23135/2025 :7: Junction Station. As regards Cochin SEZ Metro Station the work was not even completed till water level in the month of July, 2025. This would show that delay in execution is not on account of any fault on the part of the 1st respondent.

10. The respondents have given extension of time four times. The respondents would submit that no construction activities were taking place during the past 5-6 months and the contractor was non-responsive while trying to contact them. The work is related to an imported infrastructure project in Kochi. The respondents were therefore forced to terminate the contract.

In the circumstances, I do not find any illegality in the action of the respondents in issuing Ext.P12 termination order. The writ petition is without any merit and it is hence dismissed.

Sd/-

N. NAGARESH, JUDGE aks/04.08.2025 2025:KER:58264 W.P.(C) No.23135/2025 :8: APPENDIX OF WP(C) 23135/2025 PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF THE LETTER OF ACCEPTANCE WAS GRANTED TO THE PETITIONER DATED 13.03.2023 BY THE RESPONDENT, Exhibit P2 TRUE COPY OF THE PERFORMANCE BANK GUARANTEE DATED 30.05.2023 Exhibit P3 TRUE COPY OF THE CONTRACT AGREEMENT DATED 07.06.2023 Exhibit P4 TRUE COPY OF THE FIRST GOOD FOR CONSTRUCTION (GFC) DRAWING ISSUED BY THE RESPONDENTS DATED 03.08.2023 Exhibit P5 TRUE COPY OF THE RECENT GOOD FOR CONSTRUCTION (GFC) DRAWING DATED 09.04.2025 ISSUED BY THE RESPONDENT Exhibit P6 TRUE COPY OF PHOTOGRAPHIC EVIDENCE SHOWING THE WATERLOGGED SITE FROM 20.05.2024 TO 09.06.2025 Exhibit P7 TRUE COPY OF THE REQUEST OF EXTENSION OF TIME AND THE APPROVAL DATED 06.04.2024 Exhibit P8 TRUE COPY OF THE EXTENSION APPLICATION DATED 31.01.2025 AND ITS APPROVAL DATED 02.04.2025 Exhibit P9 TRUE COPY OF THE 14-DAYS NOTICE ISSUED BY THE RESPONDENT DATED 10.04.2025 Exhibit P10 TRUE COPY OF THE REPLY DATED 22.04.2025 SUBMITTED BY THE PETITIONER TO THE 14 DAYS NOTICE ISSUED BY RESPONDENT Exhibit P11 TRUE COPY OF THE EXTENSION OF TIME REQUEST (EOT-IV) SUBMITTED BY THE PETITIONER DATED 07.06.2025 Exhibit P12 TRUE COPY OF THE TERMINATION OF CONTRACT ORDER ISSUED BY THE RESPONDENT DATED 12.06.2025 Exhibit P13 TRUE COPY OF THE RELEVANT CLAUSES FROM THE GENERAL CONDITION OF CONTRACT (GCC) AND SPECIAL CONDITION OF CONTRACT (SCC) IS PRODUCED HEREWITH AND MARKED AS EXHIBIT P13.

2025:KER:58264 W.P.(C) No.23135/2025 :9: Exhibit P14 True copy of Photo of current status Cochin SEZ station Exhibit P15 True copy of the part bill 19 dated NIL RESPONDENT'S ANNEXURES Annexure R1(a) A true copy of the photograph along with a brief narration of actual status of work in Cochin SEZ RHS Annexure R1(b) A true copy of the photographs along with a brief narration of actual status of work in Cochin SEZ LHS Annexure R1(c) A true copy of the photographs along with a brief narration of actual status of work in Kakkanad Junction LHS Amnnexure R1(d) A true copy of the photographs along with a brief narration of actual status of work in Kakkanad Junction RHS