[Cites 0, Cited by 0]
Kerala High Court
Nizamudeen. A vs State Of Kerala on 23 February, 2026
W.A. No. 2322 of 2025 &
W.P. (C) No. 2354 of 2026
-1-
2026:KER:16228
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE THE CHIEF JUSTICE MR. SOUMEN SEN
&
THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M.
MONDAY, THE 23RD DAY OF FEBRUARY 2026 / 4TH PHALGUNA, 1947
WA NO. 2322 OF 2025
AGAINST THE JUDGMENT DATED 13.08.2025 IN WP(C)
NO.38799 OF 2024 OF HIGH COURT OF KERALA
APPELLANT/S:
NIZAMUDEEN A.,
AGED 58 YEARS
S/O.ALIKANNU, THOPPIL GARDENS, THOLIKKUZHY,
ADAYAMON P.O., KILIMANOOR, THIRUVANANTHAPURAM-,
PIN - 695614
BY ADVS.
SRI.ANIL THOMAS(T)
SMT.K.V.RASHMI
SHRI.RAHUL ANIL
RESPONDENT/S:
1 STATE OF KERALA
REPRESENTED BY THE PRINCIPAL SECRETARY,
INDUSTRIES DEPARTMENT, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
2 THE TRAVANCORE CEMENTS LTD.,
REPRESENTED BY ITS MANAGING DIRECTOR, NATTAKAM,
KOTTAYAM, PIN - 686013
3 JACOB THOMAS
S/O CHACKO THOMAS, VAZHAKKALATHIL HOUSE,
W.A. No. 2322 of 2025 &
W.P. (C) No. 2354 of 2026
-2-
2026:KER:16228
PARANTANKUZHI LANE, ARATHUTI, KOTTAYAM, PIN -
686001
4 M.C. JAYACHANDRAN
S/O CHANDRASEKHARAN NAIR, CHANDRALAYAM HOUSE,
S.H.MOUND P.O, KOTTAYAM, PIN - 686006
BY ADVS.
SRI.MILLU DANDAPANI
SRI.K.S.PRENJITH KUMAR
SHRI.BIJOY CHANDRAN, SENIOR G.P.
THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON
23.02.2026, ALONG WITH WP(C).2354/2026, THE COURT ON THE
SAME DAY DELIVERED THE FOLLOWING:
W.A. No. 2322 of 2025 &
W.P. (C) No. 2354 of 2026
-3-
2026:KER:16228
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE THE CHIEF JUSTICE MR. SOUMEN SEN
&
THE HONOURABLE MR. JUSTICE SYAM KUMAR V.M.
MONDAY, THE 23RD DAY OF FEBRUARY 2026 / 4TH PHALGUNA, 1947
WP(C) NO. 2354 OF 2026
PETITIONER/S:
NIZAMUDEEN. A
AGED 62 YEARS
S/O ALIKANNU, THOPPIL BUILDING, THOLIKUZHY,
ADAYAMON PO, KILIMANOOR, THIRUVANANTHAPURAM, PIN
- 695614
BY ADVS.
SRI.ANIL THOMAS(T)
SMT.K.V.RASHMI
SHRI.RAHUL ANIL
RESPONDENT/S:
1 STATE OF KERALA
REPRESENTED BY THE CHIEF SECRETARY, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001
2 PRINCIPAL SECRETARY TO GOVERNMENT
INDUSTRIES DEPARTMENT, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
3 PRINCIPAL SECRETARY TO GOVERNMENT
FINANCE DEPARTMENT, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
4 TRAVANCORE CEMENTS LIMITED
REPERSENTED BY ITS MANAGING DIRECTOR, NATTAKAM,
W.A. No. 2322 of 2025 &
W.P. (C) No. 2354 of 2026
-4-
2026:KER:16228
KOTTAYAM -, PIN - 686013
5 MR. THOMAS SEBASTIAN
S.O LATE SEBASTIAN, MATTAMMEL HOUSE,
DESEEYAMUKKU, VAZHAKKALA, THRIKKAKKARA PO,
ERNAKULAM, PIN - 682021
BY ADVS SRI.MILLU DANDAPANI
SRI. BIJOY CHANDRAN, SR. GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 23.02.2026, ALONG WITH WA.2322/2025, THE COURT
ON THE SAME DAY DELIVERED THE FOLLOWING:
W.A. No. 2322 of 2025 &
W.P. (C) No. 2354 of 2026
-5-
2026:KER:16228
JUDGMENT
Dated this the 23rd day of February, 2026
Soumen Sen, C. J.
Heard Mr. Anil Thomas, learned counsel for the appellant,
Mr. Millu Dandapani, learned counsel for the 2 nd respondent
and Mr. Bijoy Chandran, learned Senior Government Pleader.
2. The appellant/writ petitioner is aggrieved by the
judgment dated 13.08.2025 in W.P. (C) No. 38799 of 2024
filed by him praying inter alia for a direction upon the 2nd
respondent to calculate the amount due to the appellant in
terms of the judgment passed in W.P. (C) No. 13125 of 2022
dated 05.08.2022 and also for stay of all further proceedings
pursuant to Exts. P10 and P11 notices issued by the 2 nd
respondent till final modification of the amount as per Ext. P6
calculation made by the appellant which is due to him. Exts.
P10 and P11 refers to letters issued to the appellant stating
that it is not possible to extent the time limit for completion of
the sale and a direction upon the appellant to remit 55
percent of the total sale amount being the 1st and 2nd
W.A. No. 2322 of 2025 &
2026:KER:16228
instalment on or before 25.10.2024.
3. During the pendency of the appeal, more than once,
opportunities were given to the appellant to deposit a sum of
Rs. 7.5 crores as the Coordinate Bench was of the view that
as on 04.12.2025, the appellant would be liable to pay a sum
of Rs. 7,07,76,469/- which was rounded off to 7.5 crores.
This order was passed on 01.12.2025 followed by a
subsequent order dated 03.02.2026 when this Bench had
extended the time to deposit the aforesaid sum within 10
days from the date of the order. Till date, the said amount
has not been deposited.
4. The learned counsel appearing on behalf of the
appellant has submitted that while disposing of the W. P. (C)
No. 38799 of 2024, the learned Single Judge has overlooked
the direction passed on 05.08.2022 where the present
appellant had prayed for refund of the earnest money deposit
of Rs. 3.50 Crores with interest in accordance with directions
contained in Ext. P7 which is an order passed by the
Government calculating the interest to which the appellant
would be entitled.
W.A. No. 2322 of 2025 &
2026:KER:16228
5. However, we respectfully differ with the said
submission having regard to the fact that while deciding the
writ petition, in paragraph No. 22, the learned Single Judge
has referred to the note submitted by the Senior Government
Pleader wherefrom it would appear that on the basis of the
report of the CA firm, which was entrusted to calculate the
interest payable on the said sum, the amount due to the
appellant would be Rs. 5,38,27,404/- which includes both
principal and interest and calculated after taking into
consideration the rate of interest at the rate fixed by the
Reserve Bank of India from time to time.
6. The learned counsel for the appellant however has
argued that the said calculation is erroneous and this ought
to have been done by the learned Single Judge before
disposing of the writ petition.
7. The 2nd respondent company is on the verge of
closure. When it was operational, the appellant entered into
an agreement with the 2nd respondent namely, Travancore
Cements Ltd. for desiltation programme of Lower Periyar
Reserve. Though the said agreement was executed, the
W.A. No. 2322 of 2025 &
2026:KER:16228
appellant claimed that he had faced several obstacles and
ultimately, the said contract was called off and the
Government directed the 2nd respondent to release the
earnest money and security deposit of Rs. 3.57 Crores with
interest at the prevailing Bank rate from the date of
agreement.
8. In the earlier writ petition, the appellant had claimed
the said amount and the learned Single Judge allowed the
writ petition by directing the respondents to disburse a sum
of Rs. 3,57,50,000/- deposited by the appellant in accordance
with the directions contained in a Government Order Ext. P7
within three months. Due to the non-compliance of the said
order, a contempt petition was filed. During the pendency of
the contempt matter, the 2nd respondent decided to sell the
property in order to meet various liabilities including the
service and retiral benefits of its employees. During that time,
the appellant along with one Mr. M. K. Nassarudeen Musaliar
found a joint venture and submitted the tender. The 2 nd
respondent forwarded the proposal to the Government for
confirmation and the Government granted consent. The writ
W.A. No. 2322 of 2025 &
2026:KER:16228
appellant requested the 2nd respondent to finalise the amount
due to him along with interest as directed in the earlier writ
petition to which the 2nd respondent responded that the
Government was requested to complete and finalise the
amount.
9. In the meanwhile, the 2nd respondent issued a letter
to the appellant directing him to remit an amount of Rs. 2
crores as the 1st instalment amount within a period of one
month as per Ext. P8 letter dated 19.09.2024. The appellant
submitted a letter requesting to extend the time to remit since
the amount due to the petitioner was not quantified. The 2 nd
respondent again issued another letter dated 21.10.2024
directing the petitioner to remit 55 percent of the total sale
amount being the 1st and 2nd instalment on or before
25.10.2024 and threatened to cancel the tender. In such
circumstances, the second writ petition was filed namely W.
P. (C) No. 38799 of 2024.
10. The 2nd respondent before the learned Single Judge
has contended that the issue with regard to the refund in the
earlier writ petition is quite distinct and separate from the
W.A. No. 2322 of 2025 &
2026:KER:16228
issue raised in the present writ petition as the subject matter
of the present writ petition is with regard to performance of
the obligation under the tender issued for reauction of the
landed properties of the 2nd respondent.
11. Although such contention was raised and the
petitioner could not have claimed set off which necessarily
has to be contractual or statutory and the claim for
adjustment is primarily based on equitable consideration
having regard to an earlier adjudication by which the 2 nd
respondent was directed to refund the amount deposited in
respect of the project that was abandoned, the learned Single
Judge applied the equitable principle and after taking into
consideration that in the second tender, a sum of ₹2.50
crores was deposited, disposed of W.P.(C)No.38799 of 2024
with the following directions:
"23. In the facts and circumstances of the
case, the writ petition is disposed of with the
following directions:
(i) The 2nd respondent-Travancore Cements
Limited is directed to set off / adjust the amount of
₹5,38,27,404/- (along with accruing interest, if any)
against the sale price payable by the petitioner's joint
W.A. No. 2322 of 2025 &
2026:KER:16228
venture and intimate the petitioner the balance
amount payable towards sale price.
(ii) The petitioner shall pay the balance sale
consideration to the 2nd respondent within a period
of two months.
(iii) On the petitioner paying the balance sale
consideration within the stipulated time, the 2 nd
respondent shall execute necessary documents
conveying the property to the petitioner's joint
venture.
(iv) If the petitioner fails to pay the balance
amount within the stipulated time, the 2nd
respondent-Company will be free to proceed with re-
auction of the property.
(v) If the petitioner has any further claims,
those claims can be agitated before the appropriate
forum including the Government of Kerala as
adjudicated by this Court in Ext.P2 judgment in W.P.
(C) No.13125/2022."
12. The learned Single Judge has also rejected the
submission on behalf of the 2 nd respondent that the contracts
being separate and requiring final adjudication, set off could
not have been allowed. The learned Single Judge have noted
that huge amounts are due to the appellant since the year
2015 and while disposing of the writ petition, the appellant
W.A. No. 2322 of 2025 &
2026:KER:16228
was granted the benefit of ₹5,38,27,404/- as set off and an
adjustment from the sale consideration payable by the writ
appellant's joint venture and then to pay the balance
consideration within the time scheduled in the order. In
paragraph 23 (v) it was further clarified that further claims to
which the writ appellant is entitled to can be adjudicated
before the appropriate forum including the Government of
Kerala as adjudicated in the previous proceedings. This
would also include resolution of the disputes by arbitration if
the contract permits so. The direction for adjustment was
based on equitable consideration.
13. The quantification to interest cannot form the subject
matter in the present writ petition. Moreover, admittedly, as
observed by the Coordinate Bench, more than Rs. 7 crores
would still remained to be paid towards the sale
consideration. In spite of repeated opportunities, the said
amount was not paid. The capacity to pay the said amount is
a relevant consideration. Under such circumstances, we do
not find any reason to interfere with the order passed by the
learned Single Judge.
W.A. No. 2322 of 2025 &
2026:KER:16228
14. The appeal fails and is accordingly dismissed. There
shall be no order as to costs.
15. This judgment shall also dispose of W.P. (C) No. 2354
of 2026. Registry is directed to make appropriate
endorsement in its record showing disposal of both the
matters.
Sd/-
SOUMEN SEN
CHIEF JUSTICE
Sd/-
SYAM KUMAR V. M.
JUDGE
Eb
W.A. No. 2322 of 2025 &
2026:KER:16228
APPENDIX OF WP(C) NO. 2354 OF 2026
PETITIONER EXHIBITS
EXHIBIT P1 A TRUE COPY OF THE AGREEMENT DATED 23-
12-2015, EXECUTED BETWEEN THE
PETITIONER'S FIRM AND THE 4TH
RESPONDENT
EXHIBIT P2 A TRUE COPY OF THE JUDGMENT IN WP(C)
20613/2019 DATED 14-09-2020
EXHIBIT P3 A TRUE COPY OF THE REPRESENTATION DATED
21-12-2020 SUBMITTED BEFORE THE 2ND
RESPONDENT
EXHIBIT P.3A A TRUE COPY OF THE JUDGEMENT OF THIS
HON'BLE COURT IN W.P.(C) NO. 1142 OF
2021, DATED 08-02-2021
EXHIBIT P4 A TRUE COPY OF THE G.O DATED 09.11.2021
BEARING NO. GO(RT) NO. 1227/2021/ID
EXHIBIT P4A A TRUE COPY OF THE PROVISION BEARING NO
140 (I)(E) CONTAINED IN THE KERALA
FINANCIAL CODE, EIGHTH EDITION 2016
DOWNLOADED FROM WEBSITE OF FINANCE
DEPARTMENT.
EXHIBIT P5 A TRUE COPY OF THE REPRESENTATION DATED
17-03-2022 SUBMITTED BEFORE THE 4TH
RESPONDENT
EXHIBIT P6 A TRUE COPY OF THE JUDGMENT IN WPC
13125/2022 DATED 05-08-2022
EXHIBIT P7 A TRUE COPY OF THE SAID G.O
NO.67/2023/ID DATED THIRUVANANTHAPURAM,
12-09-2023
EXHIBIT P8 A TRUE COPY OF THE COMMUNICATION OF THE
4TH RESPONDENT DATED 18-11-2023
EXHIBIT P9 A TRUE COPY OF THE TENDER FLOATED BY
THE 4TH RESPONDENT VIDE TENDER NO.
TCL/MM/ETEND/2024-2025/5 DATED
20.07.2024
EXHIBIT P10 A TRUE COPY OF THE TENDER SUBMISSION
CONFIRMATION DATED 09.08.2024
EXHIBIT P11 A TRUE COPY OF THE JOINT VENTURE
PARTNERSHIP DOCUMENT EXECUTED DATED 09-
08-2024
EXHIBIT P12 A TRUE COPY OF THE E-MAIL EVIDENCING
ACCEPTANCE OF THE TENDER, DATED 24-08-
2024, AFTER TECHNICAL EVALUATION
EXHIBIT P13 A TRUE COPY OF THE LETTER DATED 13-09-
2024 ISSUED BY THE 2ND RESPONDENT TO
W.A. No. 2322 of 2025 &
2026:KER:16228
THE 4TH RESPONDENT
EXHIBIT P14 A TRUE COPY OF THE SAID COMMUNICATION
ISSUED AS A LETTER OF INTENT DATED 19-
09-2024
EXHIBIT P15 A TRUE COPY OF LETTER DATED 21-09-2024
SUBMITTED BY THE PETITIONER
EXHIBIT P.15.A A TRUE COPY OF THE RELEVANT PAGE OF
KERALA FINANCIAL CODE OBTAINED FROM THE
OFFICIAL WEBSITE I.E.
WWW.FINANCE.KERALA.GOV.IN, EIGHTH
EDITION 2016
EXHIBIT P16 THE COMMUNICATION DATED 08-10-2024,
ISSUED BY THE 4TH RESPONDENT TO THE
PETITIONER AND HIS PARTNER
EXHIBIT 17 . A TRUE COPY OF THE SAID LETTER DATED
21-10-2024, ISSUED BY THE 4TH
RESPONDENT,
EXHIBIT P17A A TRUE COPY OF THE MINUTES OF THE 499TH
MEETING OF THE BOARD OF DIRECTORS OF
THE COMPANY, HELD ON 30-10-2024
EXHIBIT P18 A TRUE COPY OF MSME SAMADHAAN ON
DELAYED PAYMENT DOWNLOADED FROM THE
OFFICIAL WEBSITE OF NSIC DATED NIL.
EXHIBIT P19 A TRUE COPY OF THE AFFIDAVIT FILED IN
COC NO. 2566 OF 2022 DATED 03.04.2025
EXHIBIT P20 A TRUE COPY W.P.(C). NO. 38799 OF 2024
AS WELL AS THE COC. NO 2566 OF 2022
DATED 13.08.2025
EXHIBIT P21 A TRUE COPY OF THE MINUTES RECORDED BY
THE 1ST RESPONDENT DATED 15.10.2025
EXHIBIT P.22 A TRUE COPY OF THE AGREEMENT DATED
10.11.2025 ENTERED BETWEEN THE
PETITIONER AND 5TH RESPONDENT
EXHIBIT P.23 A TRUE COPY OF THE TENDER CANCELLATION
ORDER DATED 23.12.2025 ISSUED BY THE
4TH RESPONDENT
EXHIBIT P.24 A TRUE COPY OF THE FRESH TENDER
NOTIFICATION ISSUED BY THE 4TH
RESPONDENT DATED 30.12.2025
EXHIBIT P25 A TRUE COPY OF THE RELEVANT PAGE OF THE
REPORT OF THE COMPTROLLER AND AUDITOR
GENERAL OF INDIA ON STATE PUBLIC SECTOR
ENTERPRISES FOR THE PERIOD ENDED MARCH
2023, DOWNLOADED FROM WEBSITE
HTTPS://CAG.GOV.IN/AG2/KERALA/EN ON
DATED 25-03-2025
