Kerala High Court
B Tech Engineering vs State Of Kerala on 1 July, 2025
Author: N.Nagaresh
Bench: N.Nagaresh
2025:KER:47409
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 1ST DAY OF JULY 2025 / 10TH ASHADHA, 1947
WP(C) NO. 17391 OF 2025
PETITIONERS:
1 B TECH ENGINEERING
BUILDING NO.39/386-4, KATTUKKARA MURI,
THIRUVALLA P.O., PATHANAMTITTA DISTRICT,
REPRESENTED BY MANAING PARTNER BOBY T.KURIAKOSE.
PIN - 689 101.
2 BOBY T. KURIAKOSE
AGED 52 YEARS
LATE T.O. KURIAKOSE,
THOTTATHILPUTHENPURAYIL HOUSE,
THURUTHICADU P.O., THIRUVALLA,
PIN - 689 597.
BY ADV SRI.K.N.RADHAKRISHNAN(THIRUVALLA)
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY SECRETARY,
IRRIGATION DEPARTMENT,
THIRUVANANTHAPURAM, PIN - 695 001
2 KERALA WATER AUTHORITY
REPRESENTED BY MANAGING DIRECTOR,
JALABHAVAN, KERALA WATER AUTHORITY,
VELLAYAMBALAM, THIRUVANANTHAPURAM,
PIN - 695 033.
3 SUPERINTENDING ENGINEER
PUBLIC HEALTH CIRCLE,
2025:KER:47409
W.P.(C) No.17391/2025
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KERALA WATER AUTHORITY,
THIRUVANANTHAPURAM, PIN - 695 033.
4 THE EXECUTIVE ENGINEER
WATER SUPPLY DIVISION,
NEYYATTUMKARA P.O.,
THIRUVANANTHAPURAM DISTRICT,
PIN - 695 121.
BY ADVS.
SRI.JUSTINE JACOB
SRI.P.M.JOHNY
SRI.DHEERAJ A.S., GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY
HEARD ON 12.06.2025, THE COURT ON 01.07.2025 DELIVERED
THE FOLLOWING:
2025:KER:47409
W.P.(C) No.17391/2025
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N. NAGARESH, J.
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W.P.(C) No.17391 of 2025
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Dated this the 1st day of July, 2025
JUDGMENT
~~~~~~~~~ The 1st petitioner, an A Class Contractor, who has undertaken work of the 2nd respondent-Kerala Water Authority, is aggrieved by the forfeiture of Bank Guarantee and other Guarantees furnished for a contract work. The 2 nd petitioner is the Managing Director of the 1 st petitioner- Company.
2. The 1st petitioner quoted ₹2,76,52,109/- for the work of Jal Jeevan Mission (JJM) 2023-2024-Maranalloor Panchayat Phase III - Restoration of tar cut portion in PWD roads - General Civil Work. The work was allotted to the 1st 2025:KER:47409 W.P.(C) No.17391/2025 :4: petitioner. On 04.09.2023, Ext.P1 Letter of Acceptance was issued. The work was to be completed in nine months from the date of handing over the site. The petitioners were required to deposit ₹13,82,605/- as Performance Guarantee and the petitioners provided security deposit of ₹4,63,400/- by way of Treasury Savings Bank Deposit. A Bank Guarantee of ₹4,14,800/- was also given. Ext.P5 agreement was executed by the petitioners on 20.09.2023. Though the petitioners requested the 3rd respondent to handover site for performance of contract, the site was not handed over. On 19.06.2024, the petitioners sent Ext.P8 registered notice stating that the inordinate delay in handing over the site will cause heavy loss to the petitioners. The petitioners requested to pre-close the contract and release the security amount without any risk and cost.
3. To Ext.P8, the petitioners were served with Ext.P9 communication dated 11.11.2024 directing them to complete the work urgently. By Ext.P10 reply, the petitioners 2025:KER:47409 W.P.(C) No.17391/2025 :5: pointed out that the pipeline work was not yet completed by the Contractor who undertook that work. The petitioners again requested pre-closure of contract on account of delay in handing over the site. Ext.P10 was followed by Ext.P11, yet another request dated 03.02.2025.
4. The petitioners were thereupon served with Ext.P12 communication stating that the pipe installation work is nearing completion and the petitioners have to start the work urgently, failing which the work will be rearranged at the risk and cost of the petitioners. The petitioners state that Ext.P12 communication is highly illegal and arbitrary. The petitioners were ready to perform their part of the contract and complete the work within nine months as agreed. But, the Kerala Water Authority failed to handover the site. Therefore, Ext.P12 demand is illegal and unjust.
5. Respondents 2 to 4 resisted the writ petition. The respondents stated that the petitioners executed Ext.P5 agreement on 20.09.2023. Due to delay in obtaining road 2025:KER:47409 W.P.(C) No.17391/2025 :6: cutting permission from PWD, the pipeline works were postponed. The road cutting permission was granted by the National Highway only on 20.11.2024 on condition that the road restoration work should be completed within three months.
6. The respondents submitted that the petitioners were aware of the situation and the Kerala Water Authority was making efforts to obtain required permission. Despite the delay, the petitioners were instructed to commence the work immediately after the completion of the pipeline works. As per Ext.P12, the petitioners were informed that the failure to start work would lead to the work being rearranged at their risk and cost. The petitioners' continued non-performance has hindered progress of the Jal Jeevan Mission work intended to provide functional household tap connections to every rural household. The writ petition is therefore liable to be dismissed.
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7. I have heard the learned counsel for the petitioners, the learned Government Pleader appearing for the 1st respondent and the learned Standing Counsel appearing for respondents 2 to 4.
8. The pleadings would indicate that the petitioners had executed Ext.P5 agreement for the work of Jal Jeevan Mission (JJM) 2023-2024-Maranalloor Panchayat Phase III - Restoration of tar cut portion in PWD roads - General Civil Work, on 20.09.2023. As per the terms of Ext.P5, the Kerala Water Authority was bound to handover the site to the petitioners immediately and the petitioners were bound to complete the work within nine months. It is evident from the pleadings that the pipeline work on the road entrusted with another Contractor was not completed in time and therefore the petitioners requested pre-closure of contract on account of delay in handing over the site, on 14.11.2024.
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9. It is to be noted that the agreement was signed on 20.09.2023 and the work had to be completed within nine months. Even after more than one year, the site was not handed over to the petitioners. Evidently, the petitioners sent Ext.P10 letter dated 14.11.2024 seeking pre- closure of contract after more than one year. Ext.P10 was sent on 14.11.2024. On 24.04.2025, after more than two months from the date of Ext.P10, the petitioners were directed to start the work urgently as per Ext.P12. Even when Ext.P12 was issued, the pipe installation work was not completed.
10. Respondents 2 to 4 would submit that though pipeline work was not completed, the petitioners were required to start the work. The petitioners could have started the work only on completion of the pipeline work and only on handing over hindrance free site to the petitioners, which was not done. The petitioners had sought for pre-closure of contracts after more than one year of executing agreement.
2025:KER:47409 W.P.(C) No.17391/2025 :9: The respondents cannot expect the petitioners to carry out the work at the agreed rates long after the execution of agreement. The writ petition is therefore liable to be allowed.
11. It is declared that the petitioners are not liable for any penalty, risk or cost for non-performance of contract due to the non-handing over of site. Ext.P12 is quashed to the extent it stipulates that the Contractor is liable for risk and cost. The 3rd respondent is directed to consider Ext.P13 and release the Bank Guarantee and other Guarantees to the petitioners within a period of two months.
The writ petition is disposed of as above.
Sd/-
N. NAGARESH, JUDGE aks/27.06.2025 2025:KER:47409 W.P.(C) No.17391/2025 : 10 : APPENDIX OF WP(C) 17391/2025 PETITIONER'S EXHIBITS Exhibit P1 THE TRUE COPY OF ACCEPTANCE ISSUED BY THE THIRD RESPONDENT DATED 04.09.2023.
Exhibit P2 THE TRUE COPY OF TREASURY SAVING DEPOSIT RECEIPT NO.0960203 DATED 16.092023.
Exhibit P3 TRUE COPY OF TREASURY SAVING DEPOSIT RECEIPT NO.0960218 DATED 19.09.2023. Exhibit P4 THE TRUE COPY OF BANK GUARANTEE DATED 15.09.2023 BY THE FEDERAL BANK LTD., THIRUVALLA BRANCH.
Exhibit P5 THE COPY OF AGREEMENT EXECUTED BY THE PETITIONERS IN FAVOUR OF WATER AUTHORITY DATED 20.09.2023.
Exhibit P6 THE TRUE COPY OF LETTER SEND TO THE THIRD RESPONDENT DATED 22.01.2024.
Exhibit P7 THE TRUE COPY OF LETTER SEND TO THE THIRD RESPONDENT DATED 08.04.2024.
Exhibit P8 THE TRUE COPY OF LETTER DATED 19.06.2024 ADDRESSED TO THE THIRD RESPONDENT.
Exhibit P9 THE TRUE COPY OF COMMUNICATION DATED 11.11.2024 FROM THE OFFICE OF FOURTH RESPONDENT.
Exhibit P10 THE TRUE COPY OF LETTER DATED 14.11.2024 ADDRESSED TO THE FOURTH RESPONDENT.
Exhibit P11 THE COPY OF LETTER DATED 03.02.2025 ADDRESSED TO THE FOURTH RESPONDENT.
Exhibit P12 THE COPY OF COMMUNICATION DATED 24.04.2025 ISSUED BY THE OFFICE OF THIRD RESPONDENT.
Exhibit P13 THE COPY OF LETTER DATED 29.04.2025 ADDRESSED TO THIRD RESPONDENT.
RESPONDENT'S EXHIBITS Exhibit R2(A) true copy of minutes of meeting held under the MLA of Kattakkada dated 20.11.2024