IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.J.B.KOSHY & THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR MONDAY, THE 2ND MARCH 2009 / 11TH PHALGUNA 1930 RP.No. 1096 of 2007() --------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.6019/2006 Dated 08/03/2007 .................... REVIEW PETITIONER/ADDL.RESPONDENT NO.3 IN WPC: ------------------------------------------------------------------------------------ EXECUTIVE ENGINEER, ROADS DIVISION, P.W.D. KOLLAM. BY GOVERNMENT PLEADER SMT. K.MEERA RESPONDENT(S): PETITIONER & RESPONDENT 1 & 2 IN WPC: -------------------------------------------------------------------------------------------- 1. T.K.GEORGE VAIDYAN, THENGUVILAYIL HOUSE, MYNAGAPPALLY, THEVALAKKARA, KOLLAM. 2. KERALA FINANCIAL CORPORATION, REPRESENTED BY ITS MANAGING DIRECTOR, H.O.VELLAYAMBALAM, THIRUVANANTHAPURAM. 3. THE CHIEF MANAGER, KERALA FINANCIAL CORPORATION, BRANCH OFFICE, YMCA BUILDING, KOLLAM. R1 BY ADV. MR. R.RAMDAS R2 & R3 BY ADV. MR. A.A.ABUL HASSAN, SC, KFC THIS REVIEW PETITION HAVING COME UP FOR ADMISSION ON 02/03/2009,THE COURT ON THE SAME DAY PASSED THE FOLLOWING: Kss J.B. Koshy,Ag.C.J. & T.R.Ramachandran Nair, J. ---------------------------------------- R.P.No. 1096 of 2007 in W.P.(C) No.6019 of 2006 ---------------------------------------- Dated this the 2nd day of March, 2009 Order Koshy, Ag.C.J. Writ petitioner had entered into a contract with the review petitioner Public Works Department for construction of a road. The above work was completed and bill amount became due in April, 2005. The amount was not paid. Petitioner has taken loan from Kerala Financial Corporation and completed the work. KFC took action to recover the amount. Petitioner approached the Government saying that the Government ought to have paid the amount in time and KFC ought to have taken steps in view of the power of attorney. Finally, it was held as follows: “..... The reason stated for non-payment of the bill by the P.W.D. authority was that there are several other contractors waiting for the same and the payment can be disbursed only on priority basis. Admitted amount due to the petitioner is Rs.4,95,988/-. The admitted amount was due in April, 2005. Since admitted amount was not paid in time, dues to KFC are increased due to the interest. Now, we are in 2007. On the facts of the case, we find there is no justification in not paying the admitted bill amount by R3. Government should act fairly. Rs.4,95,988/- should be paid by R3 on account of the petitioner to KFC directly with interest at the rate of 9% per annum from the date it became due and the above amount should be credited to the KFC on the loan account of the petitioner, within one month from the date of receipt of the judgment and balance amount if any can be R.P. No.1096/2007 in W.P.(C) No.6019/2006 2 demanded by the KFC by fresh demand notice after giving the statement of accounts. Further we note that if there is any further delay in payment of amount by R3, the liability to pay the entire interest demanded by KFC will be on R3. In the meanwhile, KFC shall not take coercive steps.” Contention of the Government in the review petition is that the amount can be paid only on priority basis. Admittedly, the amounts were due from April, 2005. Petitioner had to pay interest at the rate of 24% to KFC because of the delay. Government paid the amount later according to the priority. Government utilised that amount till the payment. Petitioner had to pay interest at the rate of 24%. What is ordered to pay is only 9% interest which is the normal rate of interest. It is submitted by the Government Pleader that out of the amount claimed, Rs.36,200/- was ordered to be withheld. They have already withheld the amount and only balance amount need be paid. We see no ground to review the judgment as direction is only to pay the admitted amount. The review petition is dismissed. J.B.Koshy Acting Chief Justice T.R. Ramachandran Nair Judge vaa