P.V.SADANANDAN Vs. STATE OF KERALA

JUDGEMENT

(1.) There are a catena of decisions of this Court and Apex Court about the jurisdiction of this Court under Article 226 of the Constitution of India to interfere in contractual matters. The normal rule is that the jurisdiction of this Court to interfere in contractual matters is very limited. But, the parties to the contract are approaching this court in almost all contractual matters contending that their case will come within the sphere of this limited jurisdiction under Article 226 of the Constitution of India. Therefore, now the constitutional courts are forced to consider each and every contractual matter that comes before it and determine whether the same will come within the four corners of the limited jurisdiction of this Court under Article 226 of the Constitution to warrant the Court's interference.

(2.) The main contention of the petitioners in these batch of cases is regarding the applicability of certain office memorandums issued by the Government of India by which the payment of the performance guarantee and additional performance guarantee to be paid by contractors as per the Notice Inviting Tender (NIT) were relaxed due to the Covid 19 pandemic economic slow down. In tune with some of the Government of India orders, the State of Kerala issued certain orders reducing the performance guarantee to be paid and also granting exemption regarding the payment of additional performance guarantee, while executing agreements for the contract works.

(3.) The petitioners in these batch cases are contractors working under the Public Works Department and also under the Kerala Water Authority. The points raised in these batch cases were actually considered by this Court in detail as per judgment dtd. 21/3/2023 in WP(C)No.14051/2022 and connected cases. After the disposal of the above cases, a writ appeal was filed in one of the cases and an interim order was passed in the writ appeal. Thereafter these batch of cases are filed. Contentions almost similar to the contentions which were previously decided by this Court in the judgment dtd. 21/3/2023 in WP(C) No.14051/2022 and connected cases are raised in these writ petitions also.