Isha Learning Systems Pvt.Ltd. vs State Poverty Eradication ...
2021 Latest Caselaw 8621 Ker

         IN THE HIGH COURT OF KERALA AT ERNAKULAM
                          PRESENT

           THE HONOURABLE MR.JUSTICE N.NAGARESH

 TUESDAY, THE 16TH DAY OF MARCH 2021/25TH PHALGUNA, 1942

                  WP(C).No.35916 OF 2016(L)
PETITIONER:
              ISHA LEARNING SYSTEMS PVT.LTD.,REPRESENTED
              BY ITS AUTHORISED SIGNATORY AND LEAD
              CUSTOMER ENGAGEMENT, MR. SATYENDRA YADAV,
              K.R. PURAM, BANGALORE-560 049.

              BY ADVS.
              SRI.A.ABDUL KHARIM
              SRI.M.SREEKUMAR

RESPONDENTS:
      1     STATE POVERTY ERADICATION MISSION
            (KUDUMBASHREE)REPRESENTED BY ITS EXECUTIVE
            DIRECTOR, KUDUMBASREE, STATE MISSION
            OFFICE,IIND FLOOR,TRIDA REHABILITATION
            BUILDING,NMEDICAL COLLEGE P.O.,
            THIRUVANANTHAPURAM-695 011.

     2        THE EXECUTIVE DIRECTOR,
              STATE POVERTY ERADICATION MISSION,
              KUDUMBASREE STATE MISSION OFFICE,
              IIND FLOOR,TRIDA REHABILITATION BUILDING,
              MEDICAL COLLEGE P.O.,
              THIRUVANANTHAPURAM-695 011.

     3        DIRECTOR (FINANCE AND ADMINISTRATION),
              STATE POVERTY ERADICATION MISSION,
              KUDUMBASREE STATE MISSION OFFICE, IIND FLOOR,
              TRIDA REHABILITATION BUILDING, MEDICAL
              COLLEGE P.O., THIRUVANANTHAPURAM-695 011.

     4        STATE OF KERALA REPRESENTED BY ITS
              SECRETARY TO GOVERNMENT, LOCAL SELF
              GOVERNMENT DEPARTMENT, SECRETARIAT,
              THIRUVANANTHAPURAM-695 001.

              BY GOVERNMENT PLEADER SMT.DEEPA NARAYANAN

     THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD
ON 16.03.2021, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 W.P.(C) No.35916/2016
                                       :2:




                           N. NAGARESH, J.

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                      W.P.(C) No.35916 of 2016

          `````````````````````````````````````````````````````````````
               Dated this the 16th day of March, 2021

                            JUDGMENT

~~~~~~~~~

The petitioner is in the business of Capacity

Building and Training and is engaged in training the

beneficiaries of Kudumbashree in Apparel Sector for the last

seven years. In this writ petition, the petitioner seeks to

command the respondents to release ₹54,96,000/- to the

petitioner as per Ext.P2 invoice, with interest.

2. The 1st respondent is the State Poverty

Eradication Mission (Kudumbashree), which is Government

owned. On 30.09.2014, the petitioner entered into Ext.P1

agreement with the 1st respondent for capacity building and

skilling Kudumbashree women and giving them placement in W.P.(C) No.35916/2016

the concerned Sector. Under the agreement, 1700

candidates had to be trained at a cost of ₹10,000/- per

trainee.

3. The petitioner states that the payment structure as

per Ext.P1 agreement was that training payment will be fully

funded by Kudumbashree and released in four phases; 25%

in the first phase immediately after signing agreement, 40%

in the second phase after one month of starting training, 25%

in third phase after placement and 10% in the last phase

after practising for a period of six months. The petitioner

gave training to 1200 candidates from Thiruvananthapuram,

Ernakulam and Kollam Districts. The training started from

30.10.2014 and the first phase payment of 25% was made in

time, ie. at the time of signing the agreement.

4. On completion of one month of starting the

training, the second phase amount 40% fell due. However,

in spite of repeated requests, the amount was not paid. The

training of all candidates was completed in February, 2016.

The petitioner issued Ext.P2 invoice dated 29.03.2016 for W.P.(C) No.35916/2016

₹54.96 lakhs being the 40% of the contract amount.

5. The petitioner approached the Executive Director

of the 1st respondent and also sent mails for release of the

second phase amount. A meeting was convened on

26.08.2016 to resolve the issue.

6. Thereafter, on 22.09.2016, the 3rd respondent who

is the Director (Finance and Administration) issued Ext.P8

letter requiring the petitioner to provide proof of employment

of candidates trained and placed under the programme. The

petitioner submitted a detailed reply as per Ext.P9 dated

15.10.2016.

7. As Ext.P9 did not yield any result, the petitioner

approached the District Legal Services Authority,

Thiruvananthapuram. The 1st respondent put forth untenable

contentions. The petitioner would submit that as the

petitioner has trained candidates pursuant to the agreement,

the respondents are legally bound to pay to the petitioner the

amounts due under the contract. The respondents are liable

to be compelled by appropriate writs of this Court to do so. W.P.(C) No.35916/2016

8. Respondents 2 and 3 filed a counter affidavit in

the writ petition. Respondents 2 and 3 contended that

Ext.P1 agreement did not only envisage skilling of 1700

women in apparel making, but to develop vocational skill also

and awarding a certificate approved by Sector Skill Council

or National Council for vocational training or Kudumbashree

or other accredited certifying agencies. The petitioner did

not submit invoice in time along with details of candidates.

9. An invoice dated 29.03.016 was received after the

closure of the project. The petitioner ought to have submitted

the invoice during the course of project implementation. As

the project is closed, Kudumbashree is liable to ensure the

deliverables under the contract before the release of further

instalments to the project implementing agency. The

petitioner was required to submit proof for certification and

placement, for release of balance contract amount. The

petitioner has not done so. Third-party assessment bodies

should assess whether the petitioner has delivered the

training as per the curriculum for each vocational trade. W.P.(C) No.35916/2016

10. To the counter affidavit filed by respondents 2 and

3, the petitioner filed a reply affidavit. The petitioner stated

that details of candidates were submitted multiple times since

the 2nd respondent wanted the same in different formats.

The candidates were supplied by the Kudumbashree itself

and hence the 2nd respondent cannot plead ignorance about

the details of the candidates.

11. During the training, the officials of the 2 nd

respondent had conducted field inspection at various training

centres and had submitted the report of training to the 2 nd

respondent through District Mission Coordinator of

Kudumbashree. Therefore, the 2nd respondent cannot be

heard to contend that the respondents had no opportunity to

assess the training. The 2nd respondent had conducted

various review meetings also during the training period.

12. As regards placement, the petitioner stated that

the petitioner had already produced the letters from

employers who are willing to absorb the trained candidates.

The petitioner had trained 1200 candidates and employment W.P.(C) No.35916/2016

offer letters were issued to 1200 candidates. Some

candidates did not join. The petitioner cannot be found fault

with for non-joining of candidates in spite of offer letters.

13. Heard the learned counsel for the petitioner and

the learned Government Pleader appearing for the

respondents.

14. The execution of Ext.P1 is not under dispute. The

fact that the petitioner has given training to 1200 candidates

pursuant to Ext.P1 agreement in Thiruvananthapuram,

Ernakulam and Kollam Districts is also not under dispute.

The argument of the respondents for non-payment of agreed

amount is that the petitioner has not given list of

beneficiaries; that the petitioner did not arrange placement of

the candidates; that the petitioner did not issue certificates to

trainees; that petitioner did not apply for release of second

phase instalment in time and that the petitioner has

approached the District Legal Services Authority,

Thiruvananthapuram.

W.P.(C) No.35916/2016

15. A perusal of Ext.P1 agreement would reveal that

the amount due to the petitioner is to be released in four

instalments, i.e. 25% in first phase immediately after signing

of agreement, 40% in second phase after one month of

starting training, 25% in third phase after placement and 10%

in the last phase after tracking for a period of six months.

The respondents have paid only the first instalment on

execution of the agreement.

16. One of the objections of the respondents is that

the petitioner has not provided a list of beneficiaries. This

reason is not acceptable because the beneficiaries are

selected by the Kudumbashree units themselves and

therefore the respondents are in possession of the details of

beneficiaries. Furthermore, the petitioner would submit that

details of candidates were submitted multiple times since the

2nd respondent wanted the same in different formats.

17. Another objection of the respondents is that the

petitioner did not arrange placement of candidates who have

completed the training. Exts.P18 to P33 would show that the W.P.(C) No.35916/2016

candidates have been given offers. If any candidate did not

join pursuant to the said offer, the petitioner cannot be

blamed off. The counsel for the petitioner would submit that

once the amount of second instalment is paid to the

petitioner, the petitioner will be able to issue certificates to

trainees.

18. This Court do not deem it necessary to consider

all the objections raised by the respondents for non-payment

because in this writ petition the petitioner is claiming only the

second instalment due to the petitioner under Ext.P1

agreement. The second instalment fell due after one month

of starting training. Therefore, even if the objections of the

respondents relating to the alleged failure of the petitioner to

give placements to the candidates or of not issuing certificate

of training are true, the petitioner cannot be denied the 40%

second instalment due under the agreement.

In the circumstances, the writ petition is disposed

of directing the 1st respondent to release the 40% second

instalment amount due to the petitioner pursuant to Ext.P1, W.P.(C) No.35916/2016

within a period of two months. The issue of interest payable

on the amount due to delayed payment, is left open.

Sd/-

N. NAGARESH, JUDGE aks/15.03.2021 W.P.(C) No.35916/2016

APPENDIX PETITIONER'S EXHIBITS:

EXHIBIT P1        TRUE   COPY   OF   THE   AGREEMENT   DATED
                  30/09/2014     ENTERED    INTO     BETWEEN
                  PETITIONER AND IST RESPONDENT

EXHIBIT P2        TRUE    COPY   OF    THE    INVOICE   NO.
                  KDE/1/20162893 DATED 29/03/2016

EXHIBIT P3        TRUE COPY OF THE E-MAIL DATED 23/04/2016
                  FROM THE PETITIONER

EXHIBIT P4        TRUE COPY OF THE E-MAIL DATED 28/04/2016
                  FROM THE PETITIONER

EXHIBIT P5        TRUE COPY OF THE E-MAIL DATED 02/05/2016
                  FROM THE PETITIONER TO THE EXECUTIVE
                  DIRECTOR OF THE IST RESPONDENT

EXHIBIT P6        TRUE COPY OF THE E-MAIL DATED 29/08/2016
                  FROM THE PETITIONER TO THE EXECUTIVE
                  DIRECTOR OF THE IST RESPONDENT

EXHIBIT P7        TRUE COPY OF THE E-MAIL DATED 31/08/2016
                  FROM THE PETITIONER TO THE EXECUTIVE
                  DIRECTOR OF THE IST RESPONDENT

EXHIBIT P8        TRUE COPY OF THE LETTER ISSUED FROM THE
                  3RD RESPONDENT TO THE PETITIONER

EXHIBIT P9        TRUE   COPY OF  THE  LETTER  FROM  THE

PETITIONER TO THE 3RD RESPONDENT DATED 15/10/2016

EXHIBIT P10 TRUE COPY OF REQUEST DATED 05/09/2015 SUBMITTED TO THE 2ND RESPONDENT BY THE PETITIONER.

EXHIBIT P11 TRUE COPY OF LETTER NO. T.D.M.C.

1818/2014 DATED 19/03/2015 ISSUED BY THE DISTRICT MISSION CO-ORDINATOR OF KUDIMBASHREE TO THE 2ND RESPONDENT.

W.P.(C) No.35916/2016

EXHIBIT P12 TRUE COPY OF MINUTES OF THE MEETING HELD ON 07/08/2015.

EXHIBIT P13 TRUE COPY OF THE LETTER ISSUED FROM MAHILA APPARELS (PVT.) LIMITED, ANGAMALY TO THE PETITIONER DATED 24/09/2014.

EXHIBIT P14       TRUE COPY OF THE LETTER ISSUED FROM
                  BOMBAY     RAYON    FASHIONS     LIMITED,

THIRUVANANTHPURAM TO THE PETITIONER DATED 26/09/2014.

EXHIBIT P15 TRUE COPY OF THE LETTER ISSUED FROM MARYAN APPAREL PRIVATE LIMITED, KANNUR TO THE PETITIONER DATED 26/09/2014.

EXHIBIT P16 TRUE COPY OF THE LETTER ISSUED FROM DER PEOPLE'S EMPOWERMENT COMPANY PRIVATE LIMITED, KANNUR TO THE PETITIONER.

EXHIBIT P17       TRUE      BODY     OF     THE      LETTER
                  NO.1818/E3/2014/KSTVM    ISSUED      FROM
                  DISTRICT       MISSION      CO-ORDINATOR,

THIRUVANANTHAPURAM TO THE 2ND RESPONDENT DATED 29/03/2016.

EXHIBIT P18       TRUE COPY OF THE LETTER DATED 30/12/2015
                  ISSUED    BY  FAIR   LADY   COLLECTIONS,
                  ANGAMALY.

EXHIBIT P19       TRUE COPY OF THE LETTER DATED 14/12/2015
                  ISSUED   BY   MAHILA  APPARELS   PRIVATE
                  LIMITED, ANGAMALY.

EXHIBIT P20       TRUE COPY OF THE LETTER DATED 30/12/2015
                  ISSUED BY ICE FASHIONS, ANGAMALY.

EXHIBIT P21       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY
                  CHAIRPERSON,      KUDUMBASREE     C.D.S.,
                  THIRUMADRADY GRAMA PANCHAYATH.

EXHIBIT P22       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY

CHAIRPERSON, KUDUMBASREE C.D.S, EDATHALA. W.P.(C) No.35916/2016

EXHIBIT P23 TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY CHAIRPERSON, KUDUMBASREE C.D.S., VENGOLA GRAMA PANCHAYATH.

EXHIBIT P24       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY
                  CHAIRPERSON,      KUDUMBASREE     C.D.S.,
                  ASAMANNOOR GRAMA PANCHAYATH.

EXHIBIT P25       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY
                  CHAIRPERSON,      KUDUMBASREE     C.D.S.,
                  PALLIPPURAM GRAMA PANCHAYATH.

EXHIBIT P26       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY

CHAIRPERSON, KUDUMBASREE C.D.S.,VENGOOR.

EXHIBIT P27       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY
                  CHAIRPERSON,     KUDUMBASREE      C.D.S.,
                  PALLARIMANGALAM.

EXHIBIT P28       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY

CHAIRPERSON, KUDUMBASREE C.D.S.,PIRAVOM GRAMA PANCHAYATH.

EXHIBIT P29       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY
                  CHAIRPERSON,      KUDUMBASREE     C.D.S.,
                  PUTHENVELIKKARA GRAMA PANCHAYATH.

EXHIBIT P30       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY
                  CHAIRPERSON,      KUDUMBASREE     C.D.S.,
                  VADAKEKKARA GRAMA PANCHAYATH.

EXHIBIT P31       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY

CHAIRPERSON, KUDUMBASREE C.D.S.,NJARAKKAL GRAMA PANCHAYATH.

EXHIBIT P32       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY
                  CHAIRPERSON,      KUDUMBASREE     C.D.S.,
                  KOTTUVALLI GRAMA PANCHAYATH.

EXHIBIT P33       TRUE COPY OF THE ACKNOWLEDGMENT ISSUED BY
                  CHAIRPERSON,      KUDUMBASREE     C.D.S.,
                  MAZHUVANNOOR GRAMA PANCHAYATH.
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