The Kerala High Court on Friday directed the State government and the Motor Vehicles Department (MVD) to release the pending instalment and maintenance payments due to Keltron under the Safe Kerala Project's Automated Traffic Enforcement System.

Justice Ziyad Rahman A A further ordered Keltron to immediately disburse the amounts due to SRIT India Ltd, the contractor engaged to execute the project.

"It is ordered that the quarterly amounts due as on date shall be released by the 1st and 2nd respondents [State and MVD] through the 3rd respondent [Keltron] within a period of one month so as to enable the 3rd respondent to release the same to the petitioner," the court said.

The interim order was passed on a petition filed by SRIT India Ltd, which claimed it had invested ₹151 crore in the project, including a security deposit of ₹6 crore, and continues to incur monthly maintenance expenses of around ₹40 lakh for the AI cameras.

The court had earlier this week sought the State's response to SRIT's allegation that payments had been withheld despite there being no dispute over the amounts due under the tripartite agreement between the MVD, Keltron and SRIT.

During the hearing, SRIT's counsel argued that the State had previously acknowledged the dues in a public interest litigation filed by present Chief Minister V D Satheesan and Home Minister Ramesh Chennithala. The counsel further submitted that quarterly payments were released while the PIL was pending, but were discontinued after the case was disposed of on the ground that there were no longer any court directions requiring such payments.

Seeking an interim order, SRIT contended that the stoppage of payments had no legal basis and was causing severe financial strain.

After hearing the parties, the court observed that there appeared to be inaction on the part of the State in releasing the amounts, despite its contractual obligations. The court subsequently directed that all dues pending as of date be released within one month.

The matter has been posted for further consideration after a month.

(With LiveLaw inputs)