Facts of the Case

Lardner North and Co, a marine survey firm, filed WP(C) No. 19779 of 2023 before the Kerala High Court challenging a cancellation order dated 30.09.2022 (Ext. P10) issued by Fertilizers and Chemicals Travancore Limited (FACT), cancelling a work order dated 04.08.2022 (Ext. P4) that had been awarded to the petitioner pursuant to a tender (Ext. P3, dated 17.06.2022).

The petitioner had, among various supporting documents (a Udyam registration certificate, an IRDA insurance broking licence, and its GST registration certificate dated 27.10.2017), corresponded with FACT before the cancellation, including a show-cause notice dated 09.09.2022 and email exchanges, culminating in FACT's cancellation communication on 30.09.2022.

The petitioner had thereafter sent a further letter dated 17.10.2022 (Ext. P11) to FACT, and at the hearing before the High Court, narrowed its prayer to seeking a direction that FACT consider this letter within a fixed time frame, rather than pressing for the cancellation itself to be set aside or for a declaration that it was entitled to continue under the work order.

Issues Involved

  1. Whether FACT should be directed to consider and decide the petitioner's representation (Ext. P11) within a fixed time frame, after affording a hearing.

Petitioner's Arguments

  • The petitioner limited its prayer to a direction that the respondent consider and pass appropriate orders on its representation, Ext. P11, within a time frame, after giving it a hearing.

Respondent's Arguments

  • The Standing Counsel for FACT appeared at the hearing; the order does not record any specific opposition to the limited relief ultimately sought and granted.

Court Order / Findings

  • The Court held that the writ petition could be disposed of by directing FACT to consider and pass appropriate orders on Ext. P11, after giving the petitioner's representative a hearing, as expeditiously as possible and in any event within two months from receipt of a certified copy of the judgment.
  • The petitioner was directed to produce a certified copy of the judgment along with the writ petition before FACT for compliance.
  • No finding was made on whether the cancellation of the work order was itself justified, or on the petitioner's claim to continue under Ext. P4 — those issues were left to be addressed by FACT in deciding the representation.

Important Clarification

This order does not rule on whether FACT was justified in cancelling the work order — it simply ensures the petitioner's follow-up representation receives a timely, reasoned decision after a hearing. The petitioner's GST registration certificate was one of several documents on record showing its business credentials; it plays no substantive role in the Court's reasoning and this is not a GST dispute.

Sections Involved

  • Article 226 of the Constitution of India – writ jurisdiction invoked by the petitioner
  • General principles of natural justice (right to a hearing before an adverse commercial decision by a public sector undertaking)

Decision – In Favour of

Disposed of with a limited procedural direction — FACT was directed to consider the petitioner's representation within two months after a hearing; the validity of the work-order cancellation itself was neither upheld nor set aside by the Court.

Case Details

High Court of Kerala at Ernakulam. WP(C) No. 19779 of 2023 (Lardner North and Co v. Fertilizers and Chemicals Travancore Limited). Coram: Hon'ble Mr. Justice P.V. Kunhikrishnan. Dated 19.06.2023.

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