High Court of KeralaSingle JudgeDisposed of

K.S. Rajesh v. State of Kerala and Others

Case / Petition Number:WP(C) No.23602/2021

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • P. V. Kunhikrishnan
Judgment Date
2022-04-06
Court Decision / Holding
Disposed of with directions. The petitioner must deposit the amounts claimed by respondents 2 and 5 for the courses 2021-2022 and 2022-2023 within ten days, execute the necessary agreement with the 5th respondent within the same period, and seek referral to arbitration as per Ext.P1 Clauses 38 and 39. Contentions not disposed of are left open, and the Government is to take follow-up action based on Ext.R1(a).
Final Disposition
Disposed of

Parties to the Case

Appellants / Petitioners

  • K.S. Rajesh

Respondents

  • State of Kerala represented by the Principal Secretary, Industries & Commerce Department, Government Secretariat, Thiruvananthapuram-695001
  • Kerala State Rural Women's Electronics Industrial Co-Operative Federation Ltd. (Kerala State RUTRONIX), C-11 Elamkom Gardens, Vallayambalam, Thiruvananthapuram-695010
  • S. Suresh Kumar, Managing Director, Kerala State Rural Women's Electronics Industrial Co-Operative Federation Ltd. (Kerala State RUTRONIX), C-11 Elamkom Gardens, Vallayambalam, Thiruvananthapuram-695010
  • Jagadeesh Chandra Kumar, Technical Officer in charge of Vijayaveedhi Project and Public Relations Officer, (Kerala State RUTRONIX), C-11, Udarasiromani Road, Vallayambalam, Thiruvananthapuram-695010
  • Groware Education Solutions, Nayyanam, Nallumukku, Petta P.O., Thiruvananthapuram-695024
  • K. Padmakumar, Former Managing Director, Kerala State RUTRONIX and presently Secretary, Public Sector, Re-structuring & Internal Audit Board (RIAB), Government of Kerala, USRA-54, Udarasiromani Road, Vallayambalam, Thiruvananthapuram-695010

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. Rajit
  • • V. Rajeev Kumar
  • • Manoj P. Kunjachan
  • • C.P. Sudhakara Prasad (Sr.)
  • • K.C. Vincent
  • • S. Ramesh
  • • A. Chandra Babu
  • • Aparna Saraswathi

Counsels for Respondents

  • • SmT. Deepa Narayanan, Sr. GP

Case Synopsis & Summary

This writ petition (WP(C) No.23602/2021) by K.S. Rajesh, Director of IT Kerala Computer Education, challenges the actions of the Kerala State Rural Women's Electronics Industrial Cooperative Federation Ltd. (Kerala State RUTRONIX) and related agencies in connection with the Vijayaveedhi Project. Petitioner contends that Rutronix, without proper authorization, engaged three Principal Affiliates to oversee and manage training centers, including collection and management of funds, and to appoint or designate those affiliates for the project. He asserts that two of his training centers in Kunnamkulam and Erumapetty have suffered losses due to fixed costs such as rent, electricity, and staff allowances, and that government orders for closure contributed to those losses. The petitioner alleges that Exhibit P6, a communication from the 3rd respondent, cancelled his affiliations without notice, and Exhibit P11 reveals further stalled action after signing agreements. He contends that an arbitration clause exists in Ext.P1 and seeks quashing of Exhibits P6 and P11, mandamus to inform him of the affiliation fee and to accept payment, and a demand for a transparent e-tendering process for selection of affiliates. The court heard arguments and, recognizing the arbitration clause, disposed of the petition by directing the petitioner to deposit the sums claimed for 2021-22 and 2022-23 within ten days, execute the necessary agreement with the 5th respondent, and refer the dispute to arbitration under Ext.P1 Clauses 38 and 39; contentions were left open, and the government was directed to act on Ext.R1(a).

Provisions of Law Cited

Arbitration Clause in Ext.P1 (Clauses 38 and 39)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner argued that Rutronix, without proper authority, engaged three Principal Affiliates to oversee training centers and to collect and manage funds for the Vijayaveedhi Project, resulting in losses at two petitioner centers. He contended that Ext.P6 cancels affiliations without notice, and Ext.P11 shows delays after agreement signing. Relying on Ext.P1 arbitration clause, he sought quashing of Exts. P6 and P11 and mandamus to inform and accept affiliation fees, while urging a transparent e-tendering process for affiliate selection. He urged deposit and arbitration as per Ext.P1, and requested the court to dispose the matter with a direction to deposit dues for 2021-22 and 2022-23 and to execute the agreement with the 5th respondent, with a reference to arbitration.

Contentions of Respondents

The respondents urged that the dispute falls under the arbitration clause in Ext.P1 and should be referred to arbitration. They sought to preserve the contractual governance of the Vijayaveedhi Project, allowing deposit and execution of the agreement, while leaving broader contentious issues to arbitration. Government Pleader and counsel for the Federation argued that the petitioner’s reliefs are contractual and can be resolved by arbitration, with the court issuing appropriate orders in line with Ext.P1 and the prior order dated 9.11.2021.

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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 MR. JUSTICE P.V.KUNHIKRISHNAN`** ``` WEDNESDAY, THE 6[TH] DAY OF APRIL 2022 / 16TH CHAITHRA, 1944 ``` ## **`WP(C) NO. 23602 OF 2021`** ## **`PETITIONER:`** ``` K.S. RAJESH ``` ``` AGED 51 YEARS ``` ``` S/O. K.SANKARAN, RESIDING AT KOTTARAPPATT HOUSE, WESTERN BAZAAR, MANAKKULAM, KUNNAMKULAM P.O., THRISSUR DISTRICT. ``` ``` BY ADV RAJIT ``` ## **`RESPONDENTS:`** - `1 STATE OF KERALA REPRESENTED BY THE PRINCIPAL SECRETARY, INDUSTRIES & COMMERCE DEPARTMENT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001.` - `2 KERALA STATE RURAL WOMEN'S ELECTRONICS INDUSTRIAL CO-OPERATIVE FEDERATION LTD.` - `(KERALA STATE RUTRONIX), C-11, ELAMKOM GARDENS, VALLAYAMBALAM, THIRUVANANTHAPURAM-695010.` - `3 S.SURESH KUMAR, MANAGING DIRECTOR, KERALA STATE RURAL WOMEN'S ELECTRONICS INDUSTRIAL CO-OPERATIVE FEDERATION LTD. (KERALA STATE RUTRONIX), C-11 ELAMKOM GARDENS, VALLAYAMBALAM, THIRUVANANTHAPURAM-695010.` - `4 JAGADEESH CHANDRA KUMAR, TECHNICAL OFFICER IN CHARGE OF VIJAYAVEEDHI PROJECT ANNOUNCED BY THE GOVERNMENT OF KERALA AND PUBLIC RELATIONS OFFICER, (KERALA STATE RUTRONIX), C-11, UDARASIROMANI ROAD, VALLAYAMBALAM, THIRUVANANTHAPURAM-695010.` - `5 GROWARE EDUCATION SOLUTIONS, NAYANAM, NALLUMUKKU, PETTA P.O., THIRUVANANTHAPURAM-695024, REPRESENTED BY ITS CHAIRMAN, AJEEMSH MUHAMMED BASHEER.` - `6 K.PADMAKUMAR, FORMER MANAGING DIRECTOR, KERALA STATE RUTRONIX AND PRESENTLY SECRETARY, PUBLIC SECTOR, RESTRUCTURING & INTERNAL AUDIT BOARD (RIAB), GOVERNMENT OF KERALA, USRA-54, UDARASIROMANI ROAD, VALLAYAMBALAM, THIRUVANANTHAPURAM-695010.` **2** ## **W.P.(C).No.23602/2021** ``` BY ADVS.V.RAJEEV KUMAR MANOJ P.KUNJACHAN C.P.SUDHAKARA PRASAD (SR.) K.C.VINCENT S.RAMESH A.CHANDRA BABU APARNA SARASWATI ``` ## **`OTHER PRESENT:`** ``` SMT.DEEPA NARAYANAN, SR.GP ``` ``` THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06.04.2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` **W.P.(C).No.23602/2021** **3** ## **P.V.KUNHIKRISHNAN, J. -------------------------------W.P.(C).No.23602 of 2021** **---------------------------------------------Dated this the 06[th] day of April, 2022** ## **JUDGMENT** This writ petition is filed with following prayers: - i. Call for the records leading upto Ext-P11 and quash Exhibit P6 and Exhibit P11 by issuance of a writ of certiorari or any other appropriate writ, order or direction. - ii. Issue a writ of mandamus or any other appropriate Writ, Order or Direction commanding the respondents 1 & 2 to inform the petitioner, the fees of affiliation to be paid by the petitioner to the 2[nd] respondent and accept the affiliation fees from the petitioner. - iii. Issue a writ of mandamus or any other appropriate Writ, Order or Direction commanding the 1[st] respondent herein to submit the enquiry report ordered by the 1[st] respondent in 2018 including quantification of wealth amassed by any agency without proper authority. - iv. Issue any appropriate Writ, Order or Direction to the 2[nd] respondent herein to ensure that transparent e-tendering procedures are adopted for selection or further designation of the **W.P.(C).No.23602/2021** **4** Principal Affiliate or Technical Support Agencies and that they are to be remunerated only by the 2[nd] respondent based on strict monitoring of support outlined in their contracts. v. Any other relief that this Hon'ble Court deems fit considering the facts and circumstances of hte above petition. **==> picture [36 x 12] intentionally omitted <==** 2. Petitioner is the Director of the firms namely IT Kerala Computer Education situated in Kunnamkulam and Erumapetty in Thrissur District. These educational establishments have been authorized training centres of Kerala State Rural Women's Electronics Industrial Cooperative Federation Ltd (Kerala State RUTRONIX), which is the 2[nd] respondent organization. It is the case of the petitioner that the 2[nd] respondent organization, without proper authority had been engaging three Principal Affiliates without following transparent selection procedures. It is further stated in the writ petition that these agencies were given the role of collection and management of funds from various training Centers. It is also stated in the writ petition that two training centres of the petitioner has been suffering because of Government orders for closure. These centres were incurring **5** ## **W.P.(C).No.23602/2021** huge losses on account of fixed costs like rent, electricity charges and subsistence allowance for teachers and staff. According to the petitioner, this forced him to request for time to pay the renewal fees in full in spite of the fact that considerable amounts were due to the petitioner from the 2[nd] respondent organization. While considerable time was allowed for many training centres, it is the case of the petitioner that as per Ext.P6, the 3[rd] respondent who is the Managing Director of the 2[nd] respondent public institution, has taken a decision to cancel affiliation of the training centres of the petitioner without any notice by suppressing various submissions given by him sufficiently early. It is also stated in the writ petition that the 3[rd] respondent has now stalled even a Government approved "Vijayaveedhi Project" for giving coaching for PSC examinations, after approving the petitioner's institute and collecting the requisite affiliation fees, as evident by Ext.P11. Challenging Exts.P6 and P11, this writ petition is filed. 3. Heard the learned counsel for the petitioner and the learned Government Pleader. I also heard the learned counsel for respondents 2 and 3, learned counsel for the 4[th] **W.P.(C).No.23602/2021** **6** respondent and the learned counsel for the 5[th] respondent. 4. The learned counsel for the petitioner argued the matter in detail. After arguing for some time, the learned counsel for the petitioner submitted that in Ext.P1 there is an arbitration clause. The learned counsel also submitted that huge amount is due to the petitioner from the 5[th] respondent. If the matter is referred for arbitration, the petitioner is ready to pay the requisite amount for affiliation for the academic year 2021-22 and 2022-23. The learned counsel appearing for the respondent also submitted that if the petitioner is ready to pay the requisite amount and execute the agreement with the 5[th] respondent, there may not be any problem in referring the matter for arbitration as per Ext.P1. 5. In the light of the above submission, I think this writ petition can be disposed of allowing the petitioner to do the needful as stated above and also referring the matter for arbitration in accordance to Ext.P1. 6. When this writ petition came up for consideration on 09.11.2021, this Court passed the following order: “Admit. There will be an interim stay on the operation of Exts.P6 and P11, on condition that the petitioner **7** ## **W.P.(C).No.23602/2021** deposits the amount claimed by the 2[nd] respondent at Sl. Nos.1 to 3 of Ext.P6, within a period of one month.” 7. The learned counsel for the petitioner submitted that this was for the academic year 2021 and the amount as directed above is already paid and the agreement is also executed. Therefore, this writ petition is disposed of in the following manner: 1. The petitioner will deposit the amount claimed by respondents 2 and 5 to conduct the course and to grant affiliation of the training centres for the period 2021-2022 and 2022-2023 within ten days from the date of receipt of a copy of this judgment. 2. After paying the requisite amount, the petitioner will execute necessary agreement also with the 5[th] respondent within the same period mentioned above. 3. The petitioner is free to file a representation before the competent authority among the respondents for referring the matter for **8** ## **W.P.(C).No.23602/2021** arbitration as per Clauses 38 and 39 in Ext.P1 and if such a representation is received, the competent authority among the respondents will refer the matter for arbitration in accordance to Ext.P1. 4. All the contentions raised by the petitioner is left open. 5. The Government will take necessary follow up action based on Ext.R1(a). JV sd/- **P.V.KUNHIKRISHNAN JUDGE** **W.P.(C).No.23602/2021** **9** ## **`APPENDIX OF WP(C) 23602/2021`** |`PETITIONER`|`EXHIBITS`| |---|---| |`Exhibit P1`|`TRUE COPY OF THE CONTRACT SIGNED`| ||`BETWEEN THE PETITIONER AND THE`| ||`PRINCIPAL AFFILIATE M/S.GROWARE WHO`| ||`ACTED ON BEHALF OF THE 2ND RESPONDENT`| ||`DATED 1.4.2019.`| |`Exhibit P2`|`TRUE COPY OF A NEWSPAPER REPORT OF`| ||`2018 IN MATHRUBHUMI DAILY ABOUT AN`| ||`ENQUIRY IN THE 2ND RESPONDENT`| ||`ORGANIZATION BY SHRI.K.SUNIL KUMAR,`| ||`DEPUTY SECRETARY TO GOVERNMENT,`| ||`INDUSTRIES & COMMERCE DEPARTMENT DATED`| ||`19.2.2018.`| |`Exhibit P3`|`TRUE COPY OF THE GOVERNMENT ORDER`| ||`APPROVING THE E-KERALAM AND`| ||`VIJAYAVEEDHI PROJECTS DATED`| ||`24.12.2020.`| |`Exhibit P4`|`TRUE COPY OF THE ADVERTISEMENTS ISSUED`| ||`BY THE 2ND RESPONDENT CALLING FOR`| ||`APPLICATIONS TO AFFILIATE TRAINING`| ||`AGENCIES FOR THE VIJAYAVEEDHI PROJECT.`| |`Exhibit P5`|`TRUE COPY OF THE COMMUNICATION SEND BY`| ||`THE 3RD RESPONDENT ON 20.9.2021 AND`| ||`RECEIVED BY THE PETITIONER FOR SIGNING`| ||`THE AGREEMENT FOR VIJAYAVEEDHI`| ||`PROJECT.`| |`Exhibit P6`|`TRUE COPY OF THE COMMUNICATION FROM`| ||`THE 3RD RESPONDENT DATED 6.10.2021.`| |`Exhibit P7`|`TRUE COPY OF THE REPLY GIVEN BY THE`| ||`PETITIONER TO THE 3RD RESPONDENT`| ||`THROUGH E-MAIL ON 10.10.2021 FOLLOWING`| ||`ISSUED OF EXHIBIT P6 BY THE 3RD`| ||`RESPONDENT.`| |`Exhibit P8`|`TRUE COPY OF THE COMMUNICATION DATED`| ||`28.9.2021 FROM THE PETITIONER TO THE`| ||`3RD RESPONDENT.`| |`Exhibit P9`|`TRUE COPY OF RECEIPT NO.0152 DATED`| ||`11.10.2021 FROM THE 2ND RESPONDENT`| ||`ACCEPTING A PAYMENT OF INR 5900/- FOR`| ||`GIVING AFFILIATION FOR THE`| ||`VIJAYAVEEDHI PROJECT TO THE`| **10** ## **W.P.(C).No.23602/2021** ``` PETITIONER'S TRAINING CENTRE IN KUNNAMKULAM WITH REGISTER NO. AS VC- 014. ``` ``` Exhibit P10 ``` - `TRUE COPY OF CONDITIONS ISSUED BY THE 2ND RESPONDENT ORGANIZATION FOR IMPLEMENTING VIJAYAVEEDHI PROJECT DATED 11.10.2021.` ``` Exhibit P11TRUE COPY OF THE COMMUNICATION DATED 11.10.2021 FROM THE 3RD RESPONDENT COMMUNICATED BY THE 4TH RESPONDENT TO THE PETITIONER. ``` - `Exhibit P12 TRUE COPY OF THE COMMUNICATION DATED 19/01/2021 WRITTEN BY THE 3RD RESPONDENT TO THE 1ST RESPONDENT` - `EXHIBIT P12 COPY OF THE EXCESS PROFIT REPORT OF THE YEAR 2012-2021` - `RESPONDENTS’ EXHIBITS` - `EXT.R6(A) COPY OF THE REVISED CONTRACT DATED 17.07.2019` - `EXT.R6(B) COPY OF THE G.O.(ORD) NO.197/2021/IND DATED 12.02.2021` - `Ext.R5(a) True copy of the agreement signed` ``` between the 2nd Respondent Rutronix ``` ``` and the 5th Respondent in the year ``` ``` 2006 dated 1-9-2006. ``` ``` Ext.R5(b)- True copy of the contract entered between the 5th Respondent Principal Affiliate in 2018 and the 2nd respondent dated 16-7-2018. ``` ``` Ext.R5(c)- True copy of the contract enteredintobetweenthe2nd Respondent Rutronix and the 5th Respondent Principal Affiliate dated 13-6-2008. ``` ``` Ext.R5(d) True copy of the contract enteredintobetweenthe2nd Respondent Rutronix and the 5th Respondent Principal Affiliate dated 14-1-2009. Ext.R5(e) -True copy of the contract ``` **11** ## **W.P.(C).No.23602/2021** ``` enteredintobetweenthe5th Respondent and the 2nd Respondent Rutronix dated 6-7-2019. ``` ``` Ext.R5(f) - True copy of the Student Leads Count provided to the Petitioner ATC's by IT Kerala Computer Education, Kunnumkulam for the year 2016 to 2021. Ext.R5(g) - True copy of the 2019 SC/ST Registration payments remitted by the petitioner with dates and amount (SC Fund Remitted Details). ``` ``` Ext.R5(h) - True copy of the Admission Summary Report of the years 2015-2021 by way of tabular statement and graphical data. ``` ``` Ext.R5(1) - True copy of the Statement regarding the payment remitted by the petitioner towards the Registration and Renewal fee for years 2013-2021 remitted by IT Kerala Computer Education. ``` ``` Ext.R5(j) True copy of the Study Materials Dispatch Statement for the years 2019 to 2021 to the Petitioner's Centres including that of SC/ST Students. ``` ``` Ext.R5(k) - True copy of the Circular of the 2[nd] Respondent Rutronix dated 15-3-2021regardingrenewal intimations given to all ATC's including the petitioner by Email. Ext.R5(L) - True copy of the Activity Online Proposal to Rutronix dated 24- 4-2020. ``` ``` Ext.R5(m) - True copy of the SC/ST Project Affidavit signed by the petitioner dated 27-7-2019. ``` ``` Ext.R5(n) - True copy of the relevant pages along with Index page of the Writ Petition. ``` ``` EXT.R4(A)COPY OF THE GO (ORD) NO.274/2018/IND DATED 15.03.2018 ```