Facts of the Case

The Travancore Devaswom Board (TDB), through its Executive Engineer, Electrical Division, Chengannur, had filed Maramath Petition No. 3 of 2023 before the Ombudsman for TDB seeking approval of a contract for constructing a multi-storied building at Puthenchantha, Thiruvananthapuram, including HT & LT electric service connections, a 160 KVA indoor transformer and a 125 KVA DG set, at an estimated cost of Rs. 49,50,000.

During proceedings before the Ombudsman, the Liaison Officer of the Cochin Devaswom Board sought permission to withdraw the petition, stating that the contractor had expressed unwillingness to proceed with the work in the absence of any GST provision in the contract, and because the market rates for the transformer and generator had since increased.

The Ombudsman filed Report No. 43 of 2023 recording this development, and the matter was placed before the Kerala High Court as Devaswom Board Petition (DBP) No. 103 of 2023 for the Court's consideration.

The Standing Counsel for TDB reiterated before the Division Bench that the contractor's unwillingness to proceed, absent a GST provision and given the increased equipment rates, was the reason for seeking withdrawal.

Issues Involved

  1. Whether the Travancore Devaswom Board should be permitted to withdraw its Maramath Petition seeking approval of a construction contract, in light of the contractor's stated unwillingness to proceed without a GST provision in the agreement and increased equipment costs.

Petitioner's Arguments

  • The contractor engaged for the multi-storied building work had expressed unwillingness to proceed in the absence of a GST provision being built into the contract.
  • The cost of the transformer and generator set had increased considerably since the original petition was filed, further justifying withdrawal so that the contract terms could be revisited.

Respondent's Arguments

  • The Deputy Director, Local Fund Audit — the sole respondent — was heard through the Government Pleader; no specific opposition to the withdrawal is recorded in the order.

Court Order / Findings

  • Having considered the Ombudsman's report and the submissions made, the Division Bench closed the DBP, granting the Travancore Devaswom Board permission to withdraw Petition No. 3 of 2023.
  • The withdrawal was allowed without prejudice to the Board's right to file a fresh petition for the same purpose at an appropriate time.
  • No findings were made on any tax question; the order simply records and accepts the reason given for withdrawal.

Important Clarification

This order does not decide any point of GST law. It is a routine procurement/contract-approval matter before the Devaswom Ombudsman and High Court, where the presence or absence of a GST clause in a construction contract was cited only as a commercial reason for the contractor's reluctance to proceed — a reminder that public-works and temple-board contracts should build in GST pass-through provisions from the outset to avoid execution delays.

Sections Involved

  • Travancore-Cochin Hindu Religious Institutions Act, 1950 — governs the constitution and functioning of the Travancore Devaswom Board and its Ombudsman mechanism for Maramath (works) petitions.
  • Central Goods and Services Tax Act, 2017 — referenced only as the tax the contractor wanted expressly provided for in the works contract; no substantive GST issue was adjudicated.

Decision – In Favour of

Disposed of in favour of the petitioner (Travancore Devaswom Board), which was permitted to withdraw its own petition without prejudice to filing afresh — there was no adversarial decision on merits.

Case Details

  • Court: High Court of Kerala at Ernakulam
  • Case No.: DBP No. 103 of 2023 (arising from Maramath Petition No. 3 of 2023 and Ombudsman Report No. 43 of 2023)
  • Coram: Justice Anil K. Narendran and Justice G. Girish
  • Date of Order: 26 October 2023

Link to Download the Order

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