High Court of KeralaDivision BenchWrit appeal dismissed; liberty to pursue approp...

Kabeer M. v. State of Kerala

Case / Petition Number:W.A.No.1020/2023

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • S.V.N. Bhatti
  • M.R. Anitha
Judgment Date
2023-05-30
Court Decision / Holding
Writ appeal dismissed. However, liberty is given to the appellant to resort to appropriate proceedings against termination and the consequential steps taken by the respondent. All contentions raised by the appellant before this Court are left open.
Final Disposition
Writ appeal dismissed; liberty to pursue appropriate proceedings against termination; contentions left open.

Parties to the Case

Appellants / Petitioners

  • Kabeer M.

Respondents

  • State of Kerala represented by the Secretary to Government, Department of Public Works
  • Chief Engineer Public Works Department (Roads)
  • Executive Engineer Public Works Department, Roads Division, Kozhikode District
  • Assistant Executive Engineer Public Works Department, Roads Sub Division, Koyilandi, Kozhikode District
  • Assistant Engineer Public Works Department, Roads Section, Perambra, Kozhikode District

Legal Representation & Advocates

Counsels for Petitioners

  • • P. Mohandas (Ernakulam)
  • • K. Sudhinkumar Sabu
  • • Pullan Gokul D.
  • • Sudhakar n R. Bhaskara Krishnan
  • • K. P. Satheesan (Sr.)

Counsels for Respondents

  • • GOVERNMENT PLEADER T.K. VINPINDAS

Case Synopsis & Summary

This writ appeal challenges termination of a road-works contract and seeks a mandamus to the Chief Engineer, PWD (Roads), to approve a revised estimate so the appellant could commence work under agreement No.SE(K) 18/2022-23 dated 17/05/2022. The original award was to Faiz M.D. of Kasaragod, which was terminated at risk and cost, and after re-tendering the appellant was selected under Ext.P1 with performance guarantees. The dispute centers on a proposed widening of the carriage way from 3.5 meters to 5.5 meters; the appellant contends that a revision of the estimate was essential under Clause 2111 of the PWD Manual (Revised Edition, 2012) and that tender and approval actions were taken while the revision was pending before the 2nd respondent, the Chief Engineer, PWD (Roads). Allegations include that initial levels were recorded wrong (Ext.P5) and that officials directed deviation to an 8-meter width, later issuing Ext.P7 and Ext.P8, ultimately leading to Ext.P13 recommending termination at the appellant’s risk and cost and blacklisting. After review, the learned Single Judge held the appellant bound by the contract and found no arbitrariness in termination. The High Court dismissed the writ appeal, relying on established contractual principles and precedent, but granted liberty to pursue appropriate proceedings against termination, leaving other contentions open.

Provisions of Law Cited

Clause 2111 of PWD Manual Revised Edition, 2012Article 226 of the Constitution

Legal Doctrines & Maxims

  • A concluded contract is a binding agreement and writ petitions are not the proper remedy to impeach contractual obligations (Har Shankar and Ors. v. The Dy. Excise and Taxation Commissioner and Others)
  • Writ jurisdiction under Article 226 is invoked for illegality or arbitrariness justifying interference in public duties, not for enforcing private contracts (Radhakrishna Agarwal v. State of Bihar)
  • Writ of mandamus may be granted only where there is a statutory duty on the officer and failure to discharge that duty (Lekhraj Satramdas Lalvani v. Deputy Custodian – cum – Managing Officer and Others)
  • Contractual disputes and tender-related decisions are subject to limited judicial review; termination of contract in public works is often not interfered with in writ proceedings (Banchhanidhi Rath v. The State of Orissa and Others)
  • State of Kerala v. M.K.Jose (2015) - reliance on precedents to uphold the standard of review and contract administration

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the widening proposal to 5.5 meters necessitated a revised estimate under Clause 2111 of the PWD Manual (2012). The tender notification issued while the revision was pending and Ext.P5/Ext.P6 records show initial levels; officials allegedly directed deviations to 8 meters, contrary to the approved plan. The appellant argues that without approval of the revised estimate, work cannot proceed and that termination without considering this issue is arbitrary. They sought mandamus to secure approval of the revised estimate to enable completion of work and a fair opportunity to complete under the contract terms. They contend that rejection of these pleas and termination at the appellant’s risk and cost breaches principles of natural justice and proper contract administration.

Contentions of Respondents

The respondents contend the contract was tendered and awarded for a 3.8-meter carriageway (not 3.5 m) and later actions for widening to 5.5 m were not in force. The department maintained that the original sanctioned estimate governed and that the appellant voluntarily participated in the tender knowing the scope. The 5th respondent argued that quantities beyond the agreement were to be executed at agreed rates up to 125% and then at negotiated rates, and that termination was not arbitrary but in accordance with the contract terms when milestones were not achieved. They rely on established contract-law principles and precedents to justify the termination, and emphasize that writs are not a remedy for disputing contractual obligations.

Cited Precedents (5)

Case NameCitationTreatmentExplanation
Radhakrishna Agarwal v. State of Bihar1977 KLT Online 1153 (SC)PositiveCited to support the proposition that writ petitions under Article 226 are not appropriate to challenge contractual obligations.
Har Shankar and Ors v. The Dy. Excise and Taxation Commissioner and OthersMANU/SC/0321/1975 : [1975] 3 SCR 254PositiveUsed to reinforce the principle that a concluded contract comes into existence and writ relief cannot compel performance of contractual obligations.
Banchhanidhi Rath v. The State of Orissa and OthersAIR 1972 SC 843PositiveCited for the rule that contractual employment or obligations cannot be enforced by writ under Article 226.
Lekhraj Satramdas Lalvani v. Deputy Custodian – cum – Managing Officer and OthersMANU/SC/0010/1965PositiveAffirms that writ of mandamus may be granted only for statutory duties; limits writ to public duties.
State of Kerala v. M.K.Jose2015 (9) SCC 433PositiveRelied upon to support the approach to contract administration and review of tender/termination decisions.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE THE ACTING CHIEF JUSTICE MR.S.V.N.BHATTI** **&** **THE HONOURABLE MRS. JUSTICE M.R.ANITHA TUESDAY, THE 30[TH] DAY OF MAY 2023 / 9TH JYAISHTA, 1945 WA NO. 1020 OF 2023** **AGAINST THE JUDGMENT IN WP(C) 1323/2023 OF HIGH COURT OF** ## **KERALA** ## **APPELLANT/PETITIONER:** KABEER M. AGED 40 YEARS S/O. M. ABDULLA, CONTRACTOR, MUNDANGALAM HOUSE, THEKKIL FERRY P.O., KASARAGOD DISTRICT, PIN - 671541 BY ADVS. P.MOHANDAS (ERNAKULAM) K.SUDHINKUMAR SABU PULLAN GOKUL D. SUDHAKARAN R.BHASKARA KRISHNAN K.P.SATHEESAN (SR.) ## **RESPONDENTS/RESPONDENTS:** 1 STATE OF KERALA REPRESENTED BY THE SECRETARY TO GOVERNMENT, DEPARTMENT OF PUBLIC WORKS, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM, PIN - 695001 2 CHIEF ENGINEER PUBLIC WORKS DEPARTMENT (ROADS), PUBLIC OFFICE, VIKAS BHAVAN, THIRUVANANTHAPURAM, PIN - 695033 4 EXECUTIVE ENGINEER PUBLIC WORKS DEPARTMENT, ROADS DIVISION, KOZHIKODE DISTRICT, PIN – 673020 2 ## W.A.No.1020/2023 - 5 ASSISTANT EXECUTIVE ENGINEER PUBLIC WORKS DEPARTMENT, ROADS SUB DIVISION, KOYILANDI, KOZHIKODE DISTRICT, PIN - 673305 - 6 ASSISTANT ENGINEER PUBLIC WORKS DEPARTMENT, ROADS SECTION, PERAMBRA, KOZHIKODE DISTRICT, PIN - 673525 GOVERNMENT PLEADER T.K. VINPINDAS THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 30.05.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.A.No.1020/2023 3 ## **JUDGMENT** ## **M.R.Anitha,J** This writ appeal has been filed against the judgment in W.P.(C) No.1323 of 2023. The same was filed by the appellant challenging the order dated 05/01/2023 terminating the agreement dated 17/05/2022 in between the appellant and third respondent and also seeking for an issue of writ of mandamus to the 2[nd] respondent, the Chief Engineer, Public Works Department to issue approval of the revised estimate so as to enable the appellant to commence the execution of work comprised in the agreement No.SE(K) 18/2022-23 dated 17/05/2022. 2. The facts in brief is as follows: The work was originally awarded to Mr.Faiz.M.D of Kasaragod. But that was terminated at the risk and cost of the said person, at the time when the application seeking revision of W.A.No.1020/2023 4 schedule of work consequent to the enhancement of the width of the road from 3.5 meters to 5.5 meters was pending consideration before the 2[nd] respondent, Chief Engineer, PWD (Roads), Thiruvananthapuram. After inviting re-tender, selection notice was issued to the appellant. Consequent to that, appellant executed agreement dated 17/05/2022 with third respondent on providing performance guarantee of Rs.10,72,500/- and an additional performance guarantee of Rs.37,42,802/- in accordance with Ext.P1 selection notice. It is alleged by the appellant that when the work was in progress, the third and the fourth respondents proposed to enhance the width of the road from 3.5 meters to 5.5 meters. Hence, the revision of estimate according to the appellant has become essential and necessary as contemplated under Clause 2111 of PWD Manual Revised Edition, 2012. It is alleged that the tender notification was issued when the proposal for revision of estimate was pending consideration of the 2[nd] respondent. It is the case of the appellant that based on Ext.P4 detailed estimate of the work, the W.A.No.1020/2023 5 initial levels of the work were recorded by the appellant as per Ext.P5 in the presence of the 6[th] respondent, the Assistant engineer and other officials. It is alleged that Ext.P5 was submitted to the 6[th] respondent along with Ext.P6 letter dated 14/07/2022. Hence the appellant could commence the work only if Ext.P5 initial levels were reported to the Chief Technical Examiner (CTE). But the respondent withheld initial levels without reporting to the CTE and even now Ext.P5 initial levels were not reported to CTE. 6[th] respondent as per Ext.P7 letter dated 18/07/2022 directed the appellant to record the initial levels of the road at the width of 8 meters deviating from the provisions of work contemplated in Ext.P4 detailed estimate. Thereafter, the 5[th] respondent issued Ext.P8 letter dated 20/07/2022 reiterating the directions in Ext.P7 letter. It is contended that without considering any of the contentions raised by the appellant, the 4[th] respondent without allowing the appellant to execute a supplementary agreement, gave Ext.P13 letter to the third respondent recommending to terminate the W.A.No.1020/2023 6 contract with the appellant at the risk and cost of the appellant and to black list the appellant. Thereafter appellant submitted representation to the third respondent and as per Ext.P15, appellant was informed that unless he commences the work within seven days, coercive action would be initiated against him. On getting the letter, appellant submitted a representation requesting to get the approval of the revised estimate for enabling him to commence the work. But it was not heeded and Ext.P17 letter was issued by the third respondent. Thereupon, appellant filed W.P.C No.40025 of 2022 and this Court directed the third respondent to consider the representation filed by the appellant after considering the issue and pass a reasoned order within two weeks as per Ext.P19 judgment. Pursuant to Ext.P19 judgment the third respondent rejected the representation filed by the appellant by Ext.P20 order. But, without any further action, the request made was rejected as per Ext.P21 dated 05/01/2023 terminating the contract. Challenging Ext.P21, writ petition was filed. W.A.No.1020/2023 7 3. 5[th] respondent, on the other hand, contended that the width of the road proposed to be constructed is 3.80 meters (width of tarring portion) and not 3.50 meters. The proposal was made for improving the road to BM and BC standards with a width of 3.80 meters wide carriage way, apart from concrete drains, culverts etc. But, when the work was started by the previous contractors, there was request from the people of the locality as well as Member of Legislative Assembly, to the department to form a carriage way (tarring width) to 5.50 meters instead of 3.80 meters proposed in the estimate. The department agreed for considering the proposal. During that time, the then contractor was doing the work very slowly and hence department terminated the contract at his risk and cost and consequent to that, the proposed revised estimate also cancelled and department decided to carry out the work as envisaged in the original sanctioned estimate with 3.80 meter wide road and the balance work awarded to the appellant was tendered accordingly. The contention of the 5[th] respondent is that the attempt of the W.A.No.1020/2023 8 appellant is to make out a case on the basis of the claim raised by the previous contractor for revision of estimate on the basis of the earlier demand for widening the carriage way to 5.50 meters which is not in force at all, since that was cancelled after the termination of the previous contract. It is also contended that if any of the quantities so worked out exceeds the quantities in the agreement, the contractor is bound to execute the said items of work at his agreed rates till 125% of the agreed quantity and he is entitled to get negotiated rates for quantities executed above 125% based on agreement condition. 4. After hearing both sides, the learned Single Judge found that the appellant executed an agreement in pursuance of Ext.P1 selection notice with respondent No.3 and is bound by the agreement conditions. But the appellant is relying on Ext.P3 proforma of the work issued by the Superintending engineer as against the contract with the previous contractor and consequent detailed estimate in regard to the same. It is also observed that though a proposal was made at the request of the member of the W.A.No.1020/2023 9 legislative assembly to widen the carriage way to 5.8 meters while the work was being carried out by the previous contractor it was terminated. Later, proposal made for widening the carriage way was given up and tender was invited with a carriage way of 3.8 meters and the appellant participated in the tender formalities knowing the nature of the work to be carried out. It is also found that though in the communication issued by the Superintending engineer and other authorities it is stated that the level was to be done as 8 meters from 5.50 meters it never directed the appellant to carry out any work by extending the level to 5.50 meters and further to 8 meters. It was found that there is no deviation from the award of the contract to the appellant as per Ext.P1 selection notice. Ultimately, it has been found that appellant has not made out a case of arbitrariness and illegality for enabling this Court to make interference with respect to Ext.P21 termination order passed by respondent No.3. The decision reported in **State of Kerala v. M.K.Jose : 2015 (9) SCC 433** is also relied on. W.A.No.1020/2023 10 5. Aggrieved by the same, the appellant filed this writ appeal. One of the arguments advanced by the learned counsel for the appellant is that appellant cannot commence the work since the initial level is not approved by CTE and it is his contention that the respondent wanted to terminate the contract in one way or the other. The respondent wanted to award the work to Ooralunkal Labour Co-operative Society and with this motive the contract with appellant is terminated at his risk and cost without any reason. 6. It is well settled that writ jurisdiction under Article 226 of the Constitution can be invoked only if appellant could make out any case of illegality or arbitrariness justifying interference. ## **Radhakrishna Agarwal v. State of Bihar : 1977 KLT Online** **1153 (SC)** laid down the proposition that when the State or the officers purport to operate within the contractual field and only grievance of the citizen could be that the contract between the parties is broken when the action complained of, the appropriate remedy is not by way of a petition under Article 226 of the W.A.No.1020/2023 11 Constitution. In paragraph 24 of **Har Shankar and Ors. v. The Dy. Excise and Taxation Commissioner and Others : MANU/SC/0321/1975 : [1975] 3 SCR 254** it has been held that a concluded contract must be held to have come into existence between the parties and a writ petition is not an appropriate remedy for impeaching contractual obligations. In **Banchhanidhi Rath v. The State of Orissa and Others : AIR** **1972 SC 843** it has been held in para 17 that a contractual employment could not be enforced under Article 226 of the Constitution. In **Lekhraj Satramdas Lalvani v. Deputy Custodian – cum – Managing Officer and Others : MANU/SC/0010/1965** it has been held that writ of mandamus may be granted only in a case where there is a statutory duty imposed upon the officer concerned and there is a failure on the part of that officer to discharge that statutory obligation. The chief function of the writ court is to compel the performance of public duties prescribed by statute and to keep the subordinate tribunals and officers exercising public functions within the limits W.A.No.1020/2023 12 of their jurisdiction. Hence, it is held that any duty or obligation falling upon a public servant out of a contract entered into by him as a public servant cannot be enforced by the machinery of writ under Article 226 of the Constitution. 7. But, as has been found by the learned single Judge, when the tender was confirmed with the appellant and agreement was executed, appellant is duty bound to complete the work as agreed upon between the parties. As per Ext.P2 proforma of the work, a milestone is fixed with regard to the rate of progress and consequent to which appellant had to attain 25% at the end of third month, 75% at the end of sixth month and 100% at the end of 8[th] month. Admittedly, the appellant could not attain the milestone prescribed as per the agreement executed by and between the parties. If the work is not carried out by the appellant in terms of the agreement, the tender authority is vested with the power to terminate the work. That is what has been done by the respondent in the present case. There appears to have no arbitrariness or illegality in the action W.A.No.1020/2023 13 taken by the respondent. So we do not find any illegality or impropriety in the impugned judgment passed by the learned Single Judge. In the result, writ appeal dismissed. However, liberty is given to the appellant to resort to appropriate proceedings against termination and the consequential steps taken by the respondent. All the contentions raised by the appellant before this Court are left open. (sd/-) ## **S.V.N.BHATTI ACTING CHIEF JUSTICE** (sd/-) **M.R.ANITHA JUDGE** jsr