High Court Directs Coimbatore Corporation to Consider Claims related to Diesel Price Escalation

The Madras High Court directed the Coimbatore City Municipal Corporation to consider and pass appropriate orders on the representation filed by KCP Infra Limited, dated 16.09.2022. Honourable Mr. Justice S. Sounthar investigated on the representation requested consideration of the payment of price variation arising due to the diesel price escalation for Tipper Lorries engaged on contract basis for municipal solid waste collection.

K. Muthukumarasamy, Director of KCP Infra Ltd, had been awarded a contract by the Coimbatore City Municipal Corporation for lifting solid waste. Even after the contract period had expired, the petitioner continued the work until the selection of a new contractor. However, the corporation failed to take into account the diesel price escalation during the extended period.

The High Court issued an order to the Coimbatore City Municipal Corporation to consider petitioner’s (KCP Infra) representation dated 16.09.2022 and pass final orders on the merits and in accordance with the law within six weeks from the date of receipt of the court’s order.
This order may provide relief to KCP Infra and set a precedent for handling similar cases related to diesel price escalation claims in municipal contracts.

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