Kerala High Court Penalizes Government with Rs 2 Lakh Over Contempt Challenge

The Kerala High Court has fined the state government Rs 2 lakh for contesting a single judge's order only after receiving a contempt notice. The matter involved the Challenge Fund Scheme for compensating private schools. The bench criticized the government's appeal as 'atrocious' and ordered the amount be paid to the affected school.

The Kerala High Court has imposed a fine of Rs 2 lakh on the state government for challenging a single judge's order only after it received a contempt notice for failing to implement the directions stipulated in the order.

A bench comprising Justices Amit Rawal and Easwaran S castigated the government, labeling the appeal as 'wholly atrocious, fallacious, repugnant, and aberrative.'

'We are at a loss to understand how a fresh course of action was appropriate when all steps had already been taken to comply with the same judgment,' the bench noted.

The court stated that such practices by the department and the legal department cause unnecessary delays in resolving disputes pending before competent authorities.

The case centered around the implementation of the Challenge Fund Scheme, which compensates private schools for up to 50% of construction costs. The scheme applies to schools that began their construction or renovation projects after March 1, 2018.

An Ernakulam-based school involved in the case claimed it was entitled to the scheme's benefits as its construction was finished and occupancy certificate received in March 2019.

The government had deposited Rs 50 lakh for its share of the construction costs but did not disburse the amount to the school, arguing that the construction had started before March 1, 2018.

The single judge bench directed the government to make a decision concerning construction costs incurred after March 1, 2018, following a hearing with all concerned parties.

The school's senior advocate, Jaju Babu, asserted that the school was extensively heard by three officers appointed by the finance secretary, but no decision was made. The school then filed a contempt plea, prompting the government to appeal the single judge's ruling.

The court dismissed the appeal, instructing the government to pay Rs 2 lakh to the school and recover the amount from the legal officers responsible for filing the writ appeal. 'It is settled law that if a party does not approach the court with clean hands, the plea can be dismissed at any trial stage with exemplary costs,' the bench concluded.

(With inputs from agencies.)