Disqualification for Government contracts, etc. —
A person shall be disqualified if, and for so long as, there subsists a contract entered into by him in the course of his trade or business with the appropriate Government for the supply of goods to, or for the execution of any works undertaken by, that Government.
Explanation.—For the purposes of this section, where a contract has been fully performed by the person by whom it has been entered into with the appropriate Government, the contract shall be deemed not to subsist by reason only of the fact that the Government has not performed its part of the contract either wholly or in part.
Section 90 of Kerala Municipality Act:
(1) A person shall be disqualified in the following circumstances for being chosen as and for being a Councillor of a Municipality if he-
90(1)(g)
.....if he is interested in subsisting contract made with, or any work being done for the Government or 9B[any Local Self Government Institution] except as a shareholder (other than a Director) in a company or except as permitted by rules made under this Act.
The Honourable Supreme Court held that the section 9A of The Representation of People Act 1951 does not disqualify persons who are having subsisting contracts with any local or other authority. (Shrikant V. Vasanthrao and Others) for contesting in State Legislature.
But the section 90(1)g of Kerala Municipality Act bars a person from contesting election to local body, if he is interested in subsisting contract made with or any work being done for the Govt or Local body.
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