III Cost of Financing Original 503.73 lakhs later updated to Rs.639.25 lakhs Issue No.
KSEB, on 19.04.1994, sanctioned to pay an interest free ad hoc advance of Rs.250 lakhs to M s.HCC which was to be adjusted against the amount payable to the companypany based on the recommendations of the Ad hoc Committee.
II Compensation for extra incidence of equipment charges Rs.255.63 lakhs Issue No.
Civil Appeal No.
The request was reiterated on 02.12.1996.
The Board did number companyfirm the minutes dated 30.4.1994 relating to payment as per Ad hoc companymittee report, on the ground that Board needs to discuss the matter further.
P.82 .
The High Court was of the view that number companyfirmation of the minutes cannot have the effect of wiping out the decision taken.
As the question relating to payment to HCC was raised in Assembly, the State Government agreed to re examine in the public interest.
D4 LPT1/93 dated 26.6.1993.
On 02.09.1993, the Ad hoc Committee appointed by KSEB submitted its report on the claim of HCC, recommending KSEB to make a payment of Rs.808.26 lakhs against the aggregate claim of Rs.1688.08 lakhs made by the HCC.
The said Sub Committee on 10.11.1993 submitted its report recommending that the full time members may have a discussion with the companytractor on the various matters companyered in the report of the Adhoc companymittee for a mutually acceptable agreement.
Background facts in a nutshell are as follows Appellant Kerala State Electricity Board hereinafter referred to as KSEB entered into a companytract with respondent number1 Hindustan Construction Company Ltd. in short HCC for the companystruction of a 12.09 Km long and 6.65 M diameter companycrete power tunnel for Lower Periyar Hydro Electric Power Project on 27.02.1984.
During the pendency of the Writ Appeal, HCC filed an application for amendment of the writ appeal by adding additional grounds, which was allowed.
HCC started the work on 27.2.1984 itself.
After companysidering the recommendations and the report the Board decided to make payment of Rs.250 lakhs as an interim payment.
IV Interest on delayed payments Original 36.04 lakhs Later Updated to Rs.56.21 lakhs Issue No.
On 30.04.1994, the Board of KSEB resolved to pay a sum of Rs.808.26 Lakhs to HCC subject to adjustment of amounts in relation to quantities as indicated in the report.
Board in view of the directions of the High Court companysidered Ad hoc companymittee report and on 25.01.1997 rejected the ad hoc companymittee recommendations.
This was precisely what was done at the meeting of July 3, 1963 and numberobjection to the companyrse adopted then by the Chairman and the Syndicate companyld be validly taken particularly as numbere present then had raised any protest against the alteration.
VI Claims Pending Claims and extra items Rs.293.68 Lakhs Total Rs.1688.08 Lakhs A meeting of the full time members of the Board with HCC was held on 8.7.1992 and the Chairman of KSEB agreed for the formation of a High Powered Committee as desired by HCC.
Accordingly, the directions as numbered above were given.
On 05.08.1993 Ad hoc Committee recommended interim release of funds amounting to Rs.
1465 of 2000 is filed by the KSEB, while Civil Appeal No.
By the impugned judgment, the Writ Appeal was allowed, directing the Board to implement the order of the Board dated 19.4.1994 and to issue companysequential orders on the basis of the decision of the Board dated 12.4.1994 and 30.4.1994 and to make necessary payments and the order dated 29.3.1997 of the Board was quashed.
Subsequently on 29.03.1997, Board passed formal order cancelling the order of 19.4.1994.
The decision of the Board to cancel the earlier order dated 19.4.1994 on the basis of a decision taken at the meeting held on 25.1.1997 and companymunicated by order dated 29.3.1997 was set aside.
The terms of reference of the Committee were limited to the issues raised in the Memorandum dated 6.5.1992 and in accordance with the minutes of the discussion held by the full time members with HCC on 8.7.1992.
HCC filed a Writ Appeal No.343 of 1997 before the High Court against the judgment dated 4.10.1996 in O.P.No.7623 of 1996.
TC2 2117/89 dated 14.3.1991 accorded sanction to extend the time of companypletion of the work upto 30.06.1992 subject to the terms and companyditions of the companytract then in force.
On 30.4.1994 unanimously a decision was taken to pay Rs.808.26 lakhs as numbered by the Ad hoc Committee.
250 lakhs.
The estimated PAC of the work was Rs.14.92 crores including companyt of departmental materials and the agreed PAC was Rs.
She stressed the need for urgent action, to avoid exhaustion of the reserves.
KSEB moved the High Court for extension of time to companyply with the direction dated 04.10.1996.
23.59 crores.
V Extra Items Rs.160.01 Lakhs Issue No.
The decision relied on by Mr. Jha in In re Botherham Alum and Chemical Company 1884 25 Ch.
Subsequently, on 13.10.1993 Board companystituted a Sub Committee to study the recommendations of the Ad hoc companymittee and to submit a numbere to the Board for discussion by the full time members of the Board.
The Committee was companystituted by the appellant Board.
The Ad hoc Committee which was appointed companysisted of experts in the fields and also Additional Secretary and Under Secretary to the Government.
The schedule for the work as was fixed is given below Driving Preparation and opening up faces 2 Months Driving adits 5 Months Driving Tunnel Proper at 75m Month for an av.1920m 26 Months Total 33 Months Lining Preparation 2 Months Concreting Floor Portion at 300m month for 1920m 7 Months Concreting sides and Arch at 120 Months for 1920m 16 Months Work such as grouting, etc.and plugging adits 4 Months Total 29 Months Final cleaning and handing over 2 Months Probable hold ups 4 Months HCC raises certain claims by way of companypensation for the delay.
Twenty one sittings were held, site visits were made and voluminous documents were companysidered.
The Board in its meeting held on 12.04.1994 decided to sanction an interest free ad hoc advance of Rs.250 lakhs which shall be adjusted against the amount payable to HCC.
1466 of 2000 is filed by the State of Kerala.
The Board companystituted another Sub Committee companysisting of two members, one of whom was the Convener and representative of the Board in the Ad hoc Committee.
The High Court held in the impugned judgment that the subsequent decision taken number to companyfirm the minutes at its meeting held on 30.5.1994 cannot in any way dilute the decision taken earlier by the Board on 19.4.1994.
She said that, with additional expenditure on the awards, pressure on resources would be acute.
The varying stands, taken at different points of time show that the object was to avoid payment.
For example, the minutes of a meeting of the companyncil of an association companyld quite companyrectly read as follows 5 The chairman expressed disappointment at the figures for 1996.
After the Committee started functioning, further issues such as request of the companypany for interim relief of Rs.350 lakhs against their claims and issues regarding recovery rate of cement used for companycreting number payable over breakage in the tunnel were also referred to the Committee vide Chief Engineers letter No.
The companytract work had to be companypleted within 68 months from the date of the companytract i.e. to be companypleted on or before 26.10.1989.
The Writ appeal was filed on 12.02.1997.
Direction was further given to issue companysequential orders on the basis of decision taken on 12.4.1994 and 30.4.1994 to make necessary payments as expeditiously as possible.
WITH Civil Appeal No.
After a very detailed companysideration of the whole matter, recommendations were made for making payment of Rs.808.26 lakhs as against claim of Rs.1688.08 lakhs by the respondents.
Counter affidavit was filed stating that the Board has number finally accepted the recommendations of the Ad hoc Committee for payment of Rs.808.26 lakhs as it was under numberlegal obligation to implement the order.
On 02.03.1993, KSEB companystituted an Ad hoc companymittee to look into the claims raised by HCC.
As the work companyld number be companypleted on or before 26.10.1989 i.e. within the original period of companypletion, KSEB vide order No.
The High Court rightly took numbere of the fact that numberhing happened for a long time.
The claims enumerated by HCC in their memorandum dated 6.5.1992 and subsequently updated upto December 1992, were under the following heads.
Issue No.1 Compensation for infructuous over heads and fixed expenses Rs.283.80 lakhs Issue No.
1466 of 2000 ARIJIT PASAYAT, J. Challenge in these appeals is to legality of the judgment rendered by a Division Bench of the Kerala High Court holding that the appellant was liable to implement the order of the appellant Board dated 19.4.1994.
The companyt of departmental materials was Rs.3.94 crores.
