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Kerala HC dismisses Erode firm’s plea against contract termination

Soni Satti

The Kerala High Court upheld Inkel Ltd.’s decision to terminate P and C Projects Pvt. Ltd.’s Erode contract for the construction of Cochin Cancer Research Centre, Ernakulam.

The order was issued by Justice N. Nagaresh in response to a business petition challenging the contract termination.

According to the company’s petition, the project must be completed within 730 days of turning over the project site and the construction began on July 25, 2018, and was scheduled to be finished on July 23, 2020.

The Company contended that further delays were caused by the inability of Inkel, a special purpose vehicle for the project financed by the Kerala State Infrastructure Investment Fund Board (KIIFB), to clear outstanding bills and resolve labour problems.

Inkel denied the charges, claiming that the petitioner had been dragging work from the start and had only finished 35% of their work. The work’s success and consistency were considered to be lacking. As a result, the contract was terminated.

The court dismissed the petition, citing a lack of merit in the writ petition.