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2025 DIGILAW 1284 (KER)

Om Dhar Engineering Pvt. Ltd. , Represented By Its Managing Director, Kothuri Dharmesh Kumar, S/o. Rambabu Kothuri v. Kerala Water Authority, Represented By Its Managing Director

2025-05-20

N.NAGARESH

body2025
JUDGMENT : (N. NAGARESH, J.) The 1 st petitioner is a contracting Firm. The petitioner was awarded nine works of the Kerala Water Authority worth Rs.2,66,79,17,552/-. As the expenditure involved is huge, the 1 st petitioner sought financial assistance / support from the 2 nd petitioner. The 2 nd petitioner consented to support on condition that he will be authorised to accept the payment due to the 1 st petitioner, as a Power of Attorney holder. The 1 st petitioner executed a Power of Attorney. 2. However, on an erroneous appreciation of facts and law, the 2 nd respondent issued Ext.P19 proceedings rejecting the Powers of Attorney executed by the 1 st petitioner authorising the 2 nd petitioner to receive the payment. The petitioners state that Ext.P19 is illegal and unsustainable. 3. The Standing Counsel entered apperance and resisted the writ petition. On behalf of the respondents, it is submitted that many Contractors have the habit of executing agreements and thereafter outsourcing the contract work, by executing Powers of Attorney. This has created serious issues and therefore the Kerala Water Authority has difficulties in accepting such Powers of Attorney. 4. I have heard the learned counsel for the petitioners and the learned Standing Counsel representing the respondents. 5. In somewhat similar circumstances, one Mr. Namshad, a Contractor, approached this Court filing W.P.(C) No.26799/2023 wherein this Court delivered Ext.P20 judgment directing the 2 nd respondent to reconsider the issue. On further refusal to accept the Power of Attorney, the said Namshad filed W.P.(C) No.1030/2024. This Court, in Ext.P21 judgment, held that even if the Power of Attorney allows its holder to sue and be sued on behalf of the power giver, it does not mean that the Kerala Water Authority cannot proceed against the latter. The said writ petition was disposed of with directions. 6. As the issue involved in this writ petition is similar, I am of the view that this writ petition can also be disposed of with appropriate directions. 7. Ext.P19 is set aside. The competent authority of the Kerala Water Authority shall pass a fresh order in the light of Ext.P21 judgment, as expeditiously as possible, but not later than one month. Writ petition is disposed of as above.