Compensation for termination of contract; TDB gets interim relief from SC

In a major relief to the Travancore Devaswom Board, the Supreme Court has stayed a Kerala High Court order that directed the Board to pay compensation to Panchami Pax, the company formerly contracted to produce Aravana at Sabarimala.

An official statement issued by the Board said the stay was granted in response to its appeal challenging the High Court’s directive. Panchami Pax had held the contract for Aravana production between 1999 and 2007 and later sought compensation of ₹239 crore, citing losses following the termination of the agreement.

The interim order was passed by a Supreme Court bench comprising Justices Sanjay Kumar and S.C. Sharma.

Following the expiry of the contract in 2007, Panchami Pax initially approached the MSME Tribunal, seeking Rs. 8 crore in damages. The tribunal ruled in favour of the company. However, the TDB contested this verdict in the Thiruvananthapuram District Court, which overturned the tribunal’s decision and ruled in favour of the Board.

Panchami Pax then moved the Kerala High Court, which reinstated the company’s claim and ordered the Board to pay ₹239 crore, including interest. The SC has now put that order on hold.