AMIN CONTROLLERS PRIVATE LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) The writ petition has been filed seeking to quash Ext.P11 and P12 in so far as imposing a penalty of Rs. 9,00,000/- upon the petitioner.

(2.) The petitioner, a Private Limited Company, entered into an agreement with the 2 nd respondent for a 3rd party Inspection of Materials and Equipments of JBIC assisted Kerala Water Supply Project as per Ext.P1. It is the case of the petitioner that the scope of inspection of materials and equipments is limited to manufacturers premises only. The contract of laying GRP pipelines was allotted to another Company. However when the GRP pipes burst, the respondents are trying to fix the liability on the petitioner illegally and to require amounts from the petitioner by way of penalty as seen in Ext. P12.

(3.) The learned counsel for the petitioner would submit that the liability has been fixed without notice to the Company and the petitioner-Company is not liable to pay any penalty what so ever, going by the agreement entered into.