As per case facts, a contractor sought payment for alleged excess work and a security deposit refund after a road construction project. His initial High Court petition was dismissed, leading ...
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.16240 of 2019
======================================================
Amit Kumar Singh Son of Late Ashok Singh R/o Village- Shivganj, P.O.-
Dariyapur, District- Muffasil Munger, District- Munger.
... ... Petitioner/s
Versus
1.The State of Bihar through the Chief Secretary, Govt. of Bihar, Patna.
2.The Principal Secretary, Planning and Development Department, Govt. of
Bihar, Patna.
3.The Executive Engineer, Local Area Engineering Organization, Works
Division, Munger.
4.The Estimating Officer, Local Area Engineering Organization, Works
Division, Munger.
5.The Junior Engineer, Local Area Engineering Organization, Works Division,
Munger.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s: Mr. Uma Shankar Sharma
For the Respondent/s: M/s Vinay Kirti Singh, GA2
Venkatesh Kirti, AC to GA 2
======================================================
CORAM: HONOURABLE JUSTICE SMT. G. ANUPAMA CHAKRAVARTHY
ORAL JUDGMENT
Date : 03-07-2026
1. The Writ petition is filed for the
following reliefs:
“(i) To set aside the award dt.
16.5.2019 passed by Hon'ble Mr. Justice
(Retd) Mungeshwar Sahoo the Chairman
and Mr. Md. Shahid Hussain Member Bihar
Public Works Contracts Disputes
Arbitration Tribunal Patna, in Reference
case No. 64/2015, whereby and
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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whereunder they were pleased to dismiss
the reference case of the petitioner being
reference case 64/2015 with cost Rs.
10,000/- vide order dated 16.5.2019.
(ii) To make payment to the
petitioner of the admitted dues amount of
Rs. 2,38,000/- (Rupees two lakhs thirty
eight thousand) of excess work done by
the petitioner of Agreement No.
44F2/2012-13, for construction of PCC
road in Paswan tola, Rai Tola, Mandal Tola
at Hasanpur, Sadar Munger in the District
of Munger and also make payment of
statutory interest on the said amount.
(iii) To return the security
Deposit amount (SD) of the petitioner.
(iv) To pass any other relief (s)
for which the petitioner would be found
entitled by this Hon'ble High Court in law
as well as facts and circumstances of this
case.”
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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2. The brief facts culled out of the Writ
petition is that the petitioner, a registered
contractor of the respondent Department, was
awarded Agreement No. 44F-2/2012-13 dated
01.02.2013, for construction of a PCC road in
Paswan Tola, Rai Tola and Mandal Tola at Hasanpur,
Sadar, Munger, for a contract value of
Rs.5,50,205/-, with the stipulated period of
completion being three months. According to the
petitioner, the contractual work was completed
within the prescribed time. It is submitted that,
during execution of the work, the departmental
authorities instructed him to execute additional
works, including widening of the road, resulting in
enhancement of the total value of the work from
Rs.5,50,205/- to Rs.7,88,144/-, thereby giving rise
to an additional claim of Rs.2,38,000/-.
3. It is submitted that although the
Measurement Book (M.B. No.98 dated 05.02.2013)
recorded the work executed by the petitioner,
including the alleged additional work, and despite
the authorities having acknowledged the execution
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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of such work, payment was made only in respect of
the original agreement value. Out of the
contractual amount, the petitioner received
Rs.4,29,247/- after statutory deductions, while the
amount claimed towards the additional work,
namely Rs.2,38,000/-, as well as the security
deposit, remained unpaid despite repeated
representations made before the departmental
authorities.
4. The Learned counsel for the petitioner
submitted that aggrieved by the non-payment, the
petitioner had earlier approached this Court by
filing CWJC No.5436 of 2014. The said Writ petition
came to be dismissed by order dated 07.08.2014
on the ground that the dispute involved disputed
questions of fact and was not amenable to Writ
jurisdiction. However, liberty was granted to the
petitioner to approach the competent Civil Court or
to invoke arbitration in terms of the agreement.
5. Pursuant to the aforesaid liberty, the
petitioner filed Reference Case No.64 of 2015
before the Bihar Public Works Contracts Disputes
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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Arbitration Tribunal, seeking payment of the
alleged admitted dues of Rs.2,38,000/- together
with interest and refund of the security deposit.
The Tribunal, by Award dated 16.05.2019,
dismissed the reference holding that the claim was
devoid of merit and also imposed costs of
Rs.10,000/- upon the petitioner.
6. The Learned counsel for the petitioner
submits that the Tribunal failed to properly
appreciate the materials available on record,
particularly the Measurement Book and other
departmental records evidencing execution of the
additional work. It is contended that the authorities
themselves had accepted the execution of the
extra work, yet arbitrarily withheld payment
thereof. It is further submitted that the Tribunal
failed to consider the admitted nature of the claim
of the petitioner and passed the impugned award
without proper appreciation of the facts and
evidence, rendering the award arbitrary, illegal and
unsustainable in law.
7. On the aforesaid submissions, it is
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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prayed that the Award dated 16.05.2019 passed by
the Bihar Public Works Contracts Disputes
Arbitration Tribunal in Reference Case No.64 of
2015 be set aside, the respondents be directed to
pay the petitioner the amount of Rs.2,38,000/-
towards the additional work allegedly executed by
him under Agreement No.44F-2/2012-13 together
with statutory interest; the security deposit be
refunded; and such other consequential reliefs be
granted as may be deemed fit and proper in the
facts and circumstances of the case.
8. A detailed counter affidavit has been
filed on behalf of respondent Nos. 2 to 5 opposing
the Writ petition. The Learned counsel for the
respondents submits that the present Writ petition
is directed against the Award, dated 16.05.2019
passed by the Bihar Public Works Contracts
Disputes Arbitration Tribunal, in Reference Case
No. 64 of 2015, whereby the Tribunal, upon due
consideration of the pleadings and materials on
record, dismissed the claim of the petitioner with
costs. It is contended that the impugned award is
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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reasoned, legal and does not warrant interference
in exercise of the Writ jurisdiction of this Court.
9. It is submitted that the claim of the
petitioner for payment of Rs.2,38,000/- towards
alleged excess work is wholly unfounded.
According to the respondents, no direction or
authorization was ever issued by the competent
departmental authority requiring the petitioner to
execute any work beyond the scope of Agreement
No.44F-2/2012-13. The petitioner has failed to
produce any work order, written instruction or
approval issued by the competent authority
authorizing execution of the alleged additional
work.
10. It is further submitted that neither any
supplementary agreement was executed nor was
any revised estimate sanctioned for carrying out
any excess work. In absence of any such
authorization, the claim for additional payment is
wholly untenable.
11. The Learned counsel for the
respondents further submits that the petitioner
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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was paid the entire contractual amount, in terms of
the agreement after making statutory deductions
towards Income Tax, Sales Tax and other
admissible deductions. The petitioner accepted the
said payment on 31.03.2013, in full and final
settlement without raising any objection at the
relevant point of time. It was only after more than
five months, by representation dated 12.08.2013,
that the petitioner raised the claim for alleged
excess work. Such belated claim, according to the
respondents, has rightly been rejected by the
Tribunal.
12. It is further contended that the
application relied upon by the petitioner, on which
certain endorsements are stated to have been
made by departmental officials, does not
constitute any valid authorization for execution of
additional work. In this regard, reliance is placed
upon the earlier order passed by this Court in CWJC
No.5436 of 2014, wherein it was specifically
observed that there was nothing on record to show
that any work order had been issued by the
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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competent authority authorizing the petitioner to
execute any additional work and that mere
endorsements on an application could not
establish such authorization. The respondents
submit that the findings recorded by this Court in
the earlier proceedings fully support the conclusion
arrived at by the Tribunal.
13. It is also submitted that the Tribunal
has rightly relied upon the settled legal principles
governing such disputes. Reliance has been placed
on the judgment of the Hon'ble Supreme Court in
New India Assurance Co. Ltd. v. Genus Power
Infrastructure Ltd., reported in (2015) 2 SCC
424, wherein it has been held that once payment
is accepted in full and final settlement without
protest, the contractor cannot subsequently invoke
arbitration or raise further claims, unless the
settlement itself is shown to have been vitiated in
accordance with law. According to the respondents,
the petitioner, having accepted the contractual
payment in full and final satisfaction without any
contemporaneous protest, is estopped from
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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claiming any further amount.
14. On the aforesaid grounds, the Learned
counsel for the respondents submits that the
Tribunal has committed no error either on facts or
in law while rejecting the petitioner's claim. It is,
therefore, prayed that the Writ petition, being
devoid of merit, be dismissed.
15. Heard the Learned counsel for the
petitioner and the Learned counsel for the
respondents. Perused the records.
16. At the outset, it is pertinent to notice
that this is the second round of litigation. Earlier,
the petitioner had approached this Court in CWJC
No.5436 of 2014 claiming payment for the alleged
excess work executed under Agreement No.44F-
2/2012-13. While declining to entertain the Writ
petition on the ground that the dispute involved
disputed questions of fact, the Coordinate Bench
had categorically observed that there was nothing
on record to establish that any competent
authority had issued a work order authorizing the
petitioner to execute the alleged additional work.
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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The Court further held that mere endorsements
made on an application submitted by the petitioner
could not be treated as authorization for execution
of additional work nor could they constitute the
basis for directing payment. Liberty was, however,
reserved to the petitioner to pursue such remedy
as may be available in accordance with law.
17. Pursuant to the aforesaid liberty, the
petitioner invoked the jurisdiction of the Bihar
Public Works Contracts Disputes Arbitration
Tribunal. A perusal of the impugned Award reveals
that the Tribunal has considered the entire factual
matrix as well as the observations made by this
Court in the earlier Writ proceedings. The Tribunal
has rightly noticed that the very material on which
the petitioner founded his claim, namely the
endorsements made on his application, had
already been found insufficient by this Court to
establish authorization for execution of additional
work. In absence of any fresh or independent
material demonstrating issuance of a valid work
order or any supplementary agreement authorizing
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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execution of the alleged excess work, the Tribunal
cannot be faulted for declining to grant the relief
claimed by the petitioner.
18. This Court also finds substance in the
reasoning assigned by the Tribunal that the
petitioner has failed to establish that any
competent authority had sanctioned the alleged
additional work or that any revised estimate or
supplementary agreement had ever been
executed. It is well settled that a contractor cannot
claim payment for work allegedly executed beyond
the contractual scope unless, such work is duly
authorized in the manner contemplated under the
contract and the applicable departmental
procedure. Mere assertions or unilateral claims,
unsupported by any valid authorization, do not
create an enforceable contractual liability upon the
State.
19. Another significant circumstance
noticed by the Tribunal is that the petitioner
admittedly accepted payment of the contractual
amount without recording any protest or objection.
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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The petitioner has not disputed the finding that the
payment under the agreement was received in full
and final settlement of the contractual dues. No
material has been placed on record to demonstrate
that such acceptance was under coercion, duress
or undue influence. The Tribunal has, therefore,
rightly relied upon the principles laid down by the
Hon'ble Supreme Court in New India Insurance
Company Ltd. v. Genus Power Infrastructure
Ltd., (2015) 2 SCC 424 , Union of India v.
Master Construction Company , (2011) 12 SCC
349, and ONGC Mangalore Petrochemicals
Ltd. v. ANS Constructions Ltd. , (2018) 3 SCC
373, wherein it has been consistently held that
acceptance of payment in full and final settlement
ordinarily brings the contractual dispute to an end
unless the plea of coercion or undue influence is
specifically pleaded and duly established.
20. It is equally well settled that while
exercising jurisdiction under Articles 226 and 227
of the Constitution, this Court does not sit as an
appellate authority over an arbitral award.
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Interference is warranted only when the decision-
making process is vitiated by patent illegality,
perversity, jurisdictional error or violation of the
principles of natural justice. A mere possibility of
another view on appreciation of evidence would
not justify exercise of the Writ jurisdiction.
21. In the present case, the Tribunal has
considered the pleadings, the documentary
evidence, the earlier order passed by this Court,
and the applicable legal principles before recording
its findings. The findings recorded by the Tribunal
are based on the materials available on record and
cannot be said to be arbitrary, perverse or contrary
to law. The petitioner has failed to point out any
jurisdictional error or patent illegality in the
impugned Award warranting interference by this
Court.
22. In the facts and circumstances noticed
hereinabove, this Court is of the considered
opinion that the impugned Award dated
16.05.2019 does not suffer from any infirmity
requiring interference in exercise of the
Patna High Court CWJC No.16240 of 2019 dt.03-07-2026
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extraordinary Writ jurisdiction of this Court. The
Writ petition, being devoid of merit, deserves to be
dismissed.
23. Accordingly, the writ petition is
dismissed.
24. Interlocutory Application(s), if any,
shall stand disposed of.
Spd/-
(G. Anupama Chakravarthy, J)
AFR/NAFR NAFR
CAV DATE NA
Uploading Date 03.07.2026
Transmission Date
In a significant **Patna High Court judgment on contract disputes**, the Honourable Justice Smt. G. Anupama Chakravarthy recently rendered a pivotal decision in Civil Writ Jurisdiction Case No. 16240 of 2019. This ruling pertains to a **challenge to an arbitral award in Bihar**, specifically concerning claims for alleged excess work and security deposit refund. This detailed analysis of the judgment is now available on CaseOn, offering comprehensive insights for legal professionals and students alike.
The petitioner, Amit Kumar Singh, a registered contractor, was awarded an agreement (No. 44F-2/2012-13 dated 01.02.2013) by the respondent Department for the construction of a PCC road in various tolas of Hasanpur, Sadar, Munger. The initial contract value was Rs. 5,50,205/-, with a stipulated completion period of three months. According to the petitioner, the work was completed on time, but during its execution, departmental authorities allegedly instructed him to carry out additional works, including road widening. This purportedly increased the total work value to Rs. 7,88,144/-, leading to an additional claim of Rs. 2,38,000/-.
Despite the alleged recording of this additional work in the Measurement Book (M.B. No.98 dated 05.02.2013) and acknowledgment by authorities, the petitioner claimed he only received payment for the original agreement value (Rs. 4,29,247/- after statutory deductions). The additional work amount and the security deposit remained unpaid, leading to repeated representations to the department.
Aggrieved by the non-payment, the petitioner first approached the Patna High Court through CWJC No. 5436 of 2014. However, this writ petition was dismissed on 07.08.2014, as the dispute involved contentious factual questions unsuitable for writ jurisdiction. The High Court, however, granted liberty to the petitioner to pursue remedies either through a competent Civil Court or by invoking arbitration as per the agreement.
Pursuant to this liberty, the petitioner filed Reference Case No. 64 of 2015 before the Bihar Public Works Contracts Disputes Arbitration Tribunal. He sought payment of the admitted dues of Rs. 2,38,000/-, along with interest and a refund of the security deposit. The Tribunal, in its Award dated 16.05.2019, dismissed the reference, finding the claim devoid of merit and imposing costs of Rs. 10,000/- on the petitioner.
The core issue before the Arbitration Tribunal was whether the petitioner was entitled to payment for the alleged excess work and a refund of the security deposit, particularly when there was a claim of full and final settlement of the original contract amount.
The Tribunal, and subsequently the High Court, considered several established legal principles:
The High Court's analysis revealed a robust endorsement of the Arbitration Tribunal's reasoning. The court noted that the current writ petition represented a second round of litigation, reiterating findings from the earlier CWJC No. 5436 of 2014.
Crucially, the High Court emphasized that the petitioner failed to establish any competent authority had sanctioned the alleged additional work through a valid work order, revised estimate, or supplementary agreement. The mere endorsements on an application, as previously noted by the High Court, were deemed insufficient to constitute such authorization. It is a well-settled principle that contractors cannot claim payment for work executed beyond the contractual scope unless duly authorized in the manner prescribed by the contract and departmental procedures. Unilateral claims without valid authorization do not create enforceable contractual liability for the State.
A significant factor in the Tribunal's decision, affirmed by the High Court, was the petitioner's undisputed acceptance of the contractual payment in full and final settlement without any protest or objection at the time. The petitioner did not provide any material to demonstrate that this acceptance was under coercion, duress, or undue influence.
The High Court rightly relied on Supreme Court precedents, including New India Assurance Co. Ltd. v. Genus Power Infrastructure Ltd. (2015) 2 SCC 424, Union of India v. Master Construction Company (2011) 12 SCC 349, and ONGC Mangalore Petrochemicals Ltd. v. ANS Constructions Ltd. (2018) 3 SCC 373. These judgments consistently hold that accepting payment in full and final settlement ordinarily concludes contractual disputes unless coercion or undue influence is specifically pleaded and proven.
The Court also clarified its limited role under Articles 226 and 227 when reviewing an arbitral award. It underscored that it does not act as an appellate authority and can only interfere if the decision-making process is tainted by patent illegality, perversity, jurisdictional error, or a breach of natural justice. A mere possibility of an alternative view of evidence does not warrant writ jurisdiction intervention. In the present case, the Tribunal's findings were based on a thorough consideration of pleadings, documentary evidence, prior court observations, and applicable legal principles, thus not appearing arbitrary, perverse, or contrary to law. This comprehensive approach underscores why CaseOn.in 2-minute audio briefs are indispensable, offering legal professionals and students quick, precise summaries of such intricate rulings, enabling swift understanding and application of legal principles.
Based on the detailed analysis, the Patna High Court concluded that the impugned Award dated 16.05.2019 did not suffer from any infirmity that would necessitate interference under its extraordinary writ jurisdiction. Consequently, the writ petition was deemed devoid of merit and was dismissed. Any pending interlocutory applications were also disposed of.
This judgment serves as a crucial reminder of several key principles in contract law and arbitration:
For legal practitioners, this case underscores the importance of meticulous documentation and timely protestation during contractual execution and payment. For students, it offers a practical illustration of the interplay between contract law, arbitration, and the High Court's writ jurisdiction.
All information provided in this article is for informational purposes only and does not constitute legal advice. While efforts have been made to ensure accuracy, readers should consult with a qualified legal professional for advice pertaining to their specific circumstances.
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