Kerala State Electricity Board vs Hindustan Construction Co. Ltd.And Ors

The Supreme Court upheld the Kerala High Court's decision that the Kerala State Electricity Board (KSEB) was obligated to implement its order dated 19.4.1994, which mandated payments to Hindustan Construction Company Ltd. (HCC) for delays in the construction of a hydroelectric power project. The Court found that the cancellation of the earlier order by KSEB was invalid, as it was based on a decision made after the fact. The ruling reinforced the principle that contractual obligations must be honored unless legally justified otherwise, affirming the High Court's directive for KSEB to expedite payments to HCC.