K.S.E.B. vs HINDUSTAN CONST. CO.LTD.

The Supreme Court upheld the Kerala High Court's decision that the Kerala State Electricity Board (KSEB) must implement its order dated 19.4.1994, which directed necessary payments to Hindustan Construction Company Ltd. (HCC) based on earlier decisions from 12.4.1994 and 30.4.1994. The Court set aside KSEB's cancellation of the 19.4.1994 order made on 29.3.1997, affirming that KSEB was liable for the claims raised by HCC due to delays in the construction of the power tunnel. The judgment reinforces the principle that contractual obligations must be honored unless legally justified otherwise, leading to the conclusion that KSEB must fulfill its payment obligations to HCC.