IN THE HIGH COURT OF JUDICATURE AT PATNA

Civil Writ Jurisdiction Case No.461 of 2023

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M/s Ghanshyam Lal through its partner Sanjeev Kumar Madhogaria, Aged

about- 43 years, Gender- Male, Son of Ghanshyam Lal Madhogaria, Resident

of Simrahi Bazar, P.S.- Raghopur, District- Supaul.

... ... Petitioner/s

Versus

1.The State of Bihar through the Chief Secretary, Government of Bihar, Old

Secretariat, Patna.

2.The Secretary, Rural Works Department, Visheshwaraiya Bhawan, Bailey

Road, Patna.

3.The Additional Chief Executive Officer-cum- Secretary, Bihar, Rural Road,

Bihar, Patna.

4.The Engineer-in- Chief, Rural Works Department, Visheshwaraiya Bhawan,

Bailey Road, Patna.

5.The Chief Engineer-2, Rural Works Department, Visheshwaraiya Bhawan,

Bailey Road, Patna.

6.The Superintending Engineer, Rural Works Department, Works Circle,

Madhepura.

7.The Executive Engineer, Rural Works Department, Works Division, Birpur.

... ... Respondent/s

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Appearance :

For the Petitioner/s: Mr. Lal Babu Singh, Advocate

For the Respondent/s: Mr. Kumar Alok ( SC 7 )

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CORAM: HONOURABLE JUSTICE SMT. G. ANUPAMA CHAKRAVARTHY

ORAL JUDGMENT

Date : 24-07-2026

1. The petitioner has filed the instant

application for the following reliefs:

“(i) For a direction to the

Respondents to make payment of

admitted dues to the petitioner for

maintenance works under PMGSY

Scheme in connection with: - (a)

Package No. BR-35R021; from Shiv

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Nagar to Kataiya Road, (b) Package No.

BR-35R-028; from Chhitahi Kanal to

Gopalpur Road (19th KM Koshi Bandhi),

(c) Package No.BR-35R-033, from

Shreepur to Mansapur Road and (d)

Package No. BR-35R-035; from

Souranjan to Thalha Road.

(ii) For a further direction to

the Respondents to pay interest at

Commercial rate to the petitioner on

illegal withholding of admitted dues for

the maintenance works completed by

the petitioner.

(iii) For a declaration that

the action of the respondents of

withholding of admitted dues amounts

to unjust enrichment.

(iv) For any other relief(s) or

consequential relief(s) to which the

petitioner may be found entitled to in

the facts and circumstances of this

case."

2. The brief facts culled out of the Writ

petition is that the petitioner is a partnership firm

represented through its partner, Shri Sanjeev

Kumar Madhogaria. The petitioner is a registered

contractor in the respondent department and is

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engaged in carrying out construction and

maintenance works under the respondent

department and other works departments in the

State of Bihar.

3. The respondent department issued

Notice Inviting Tender for construction and

maintenance of four road projects, namely,

Package Nos. BR-35R-021, BR-35R-028, BR-35R-

033 and BR-35R-035. The petitioner participated in

the tender process and, being the lowest and most

responsive bidder, was awarded all the four works.

Consequently, agreements were executed between

the parties.

4. Each agreement comprised two

components, namely, execution of the construction

work and maintenance of the road for a period of

five years. The petitioner completed the

construction work, in accordance with the terms of

the agreements and there was no complaint

whatsoever regarding the quality or quantity of the

work executed. Thereafter, the petitioner also

carried out the maintenance work during the

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stipulated period and completed the same to the

satisfaction of the respondent authorities.

5. It is the case of the petitioner that

although the maintenance work was duly

completed, verified through site inspection and

found satisfactory by the departmental authorities,

the payment towards the maintenance work has

not been released. According to the petitioner, the

respondents have admitted the dues payable

towards the maintenance work, but have withheld

payment solely on the ground of non-allotment of

funds by the Government.

6. It has further been pleaded that,

after the creation of the Birpur Works Division, the

four works in question were transferred from the

Works Division, Supaul to the newly constituted

Works Division, Birpur. The Executive Engineer of

the Birpur Division addressed communications

dated 09.06.2018 and 08.10.2020 to the

Government requesting for allotment of funds

towards payment of maintenance works under the

PMGSY Scheme, wherein the petitioner's works

Patna High Court CWJC No.461 of 2023 dt.24-07-2026

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were specifically included in the requisition.

Despite of repeated requests made by the

petitioner and the recommendations of the

departmental authorities, no payment has been

released till date.

7. According to the petitioner, the

amount claimed is an admitted contractual liability

and the continued withholding of payment has

caused him substantial financial hardship. It is the

petitioner's case that non-payment of the admitted

dues is arbitrary, unreasonable and amounts to

unjust enrichment on the part of the respondents

and violates the petitioner's legal and

constitutional rights. Having no other efficacious

alternative remedy, the petitioner has preferred

the present Writ petition.

8. The Learned counsel for the

petitioner submits that there is no dispute with

regard to the execution and completion of the

maintenance work. The respondents themselves

have verified the work through site inspection,

found it satisfactory and admitted the petitioner's

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entitlement to payment.

9. It is submitted that the only reason

assigned by the respondents for withholding

payment is non-allotment of funds by the

Government. Learned counsel for the petitioner

contends that paucity of funds cannot be a valid

ground to deny payment for work duly executed,

accepted and certified by the department.

10. It is further submitted that the

Executive Engineer, on more than one occasion,

requested the Government to allot maintenance

funds and specifically included the petitioner's

claims in the requisition, which clearly establishes

that the respondents have acknowledged the

liability.

11. The Learned counsel further

submits that once the work has been completed,

accepted and the liability has been admitted, the

respondents are under a legal obligation to release

the admitted dues within a reasonable time. The

continued non-payment is arbitrary, unreasonable

and violative of Article 14 of the Constitution of

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India and also amounts to unjust enrichment, as

the respondents have enjoyed the benefit of the

work without making payment.

12. Accordingly, it is prayed that this

Court may direct the respondents to release the

admitted amount payable towards the

maintenance work under the four agreements

along with all consequential benefits and such

other reliefs as may be deemed fit and proper in

the facts and circumstances of the case.

13. A counter affidavit was filed on

behalf of the respondents. The Learned counsel

appearing for the respondents, while relying upon

the counter affidavit filed on behalf of the

Executive Engineer, submits that the petitioner

was awarded the four road projects under the

PMGSY Scheme pursuant to a valid tender process

and the agreement were duly executed between

the parties.

14. It is contended that the

construction works were completed and the

maintenance period commenced from the

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respective dates of physical completion of the

works. According to the respondents, under

Clauses 38.2 and 39.4 of the Standard Bidding

Document (PMGSY), payment towards

maintenance work is required to be made on the

basis of monthly bills submitted by the contractor

and after certification of satisfactory maintenance

by the Engineer.

15. The Learned counsel for the

respondents further contended that although

requisitions for allotment of maintenance funds

were sent to the Government by the Executive

Engineer vide letters dated 09.06.2018 and

08.10.2020, it was subsequently noticed that the

entries relating to the maintenance work had been

made in the Measurement Book in a consolidated

manner at the end of the five-year maintenance

period instead of being recorded periodically in

accordance with the contractual provisions.

16. It is contended that, in view of the

aforesaid irregularity, the competent authority

initiated a preliminary enquiry and show-cause

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notices were issued to the concerned officers to

ascertain whether the maintenance work had been

carried out in accordance with the agreement and

whether the entries made in the Measurement

Book were genuine and in conformity with the

prescribed procedure.

17. The Learned counsel for

respondents contends that the claim of the

petitioner is presently under examination by the

department and, if upon verification the claim is

found to be genuine and admissible, the payment

shall be released in accordance with law. It is,

therefore, submitted that as the verification

process is still continuing and the liability has not

yet attained finality, the petitioner cannot claim

that there are admitted dues payable by the

respondents.

18. A rejoinder to the counter affidavit

was filed on behalf of the petitioner. In reply, the

Learned counsel for the petitioner submits that the

stand taken by the respondents in the counter

affidavit, in fact, fortifies the case of the petitioner.

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It is submitted that the respondents have

categorically admitted that the petitioner was

awarded the works, completed the construction as

well as the maintenance work and that requisitions

were forwarded by the Executive Engineer to the

higher authorities for allotment of funds towards

payment of the maintenance dues.

19. The Learned counsel for the

petitioner contends that there is no allegation

whatsoever regarding the quality or quantity of the

maintenance work executed by the petitioner. On

the contrary, the work stood verified by the

departmental authorities and the respondents

themselves treated the petitioner's claim as

payable by forwarding requisitions for release of

funds. It is, therefore, contended that the liability

of the respondents stood admitted and the only

reason assigned earlier for non-payment was non-

allotment of funds.

20. It is further contended that the plea

now sought to be raised regarding alleged

irregularities in the entries made in the

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Measurement Book is wholly misconceived and is

an afterthought. According to the petitioner, the

Measurement Book is prepared and maintained by

the departmental officers and the petitioner has no

control over the manner in which entries are

recorded therein. Even assuming that there was

any procedural irregularity in the Measurement

Book, the same cannot be attributed to the

petitioner nor can it defeat the petitioner's claim

for payment of work admittedly executed and

accepted by the department.

21. The Learned counsel for the

petitioner also contends that the maintenance

period expired in the years 2016 and 2017 and the

respondents, after having admitted the petitioner's

entitlement and sought allotment of funds, cannot,

after several years, withhold payment on the

pretext of a departmental enquiry. Such a stand is

arbitrary and cannot deprive the petitioner of the

admitted contractual dues.

22. It is lastly submitted that the

respondents have enjoyed the benefit of the work

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executed by the petitioner without making

payment for nearly eight years. The continued

withholding of the admitted dues is wholly

unjustified, amounts to unjust enrichment and has

caused serious financial hardship to the petitioner.

It is, therefore, prayed that the respondents be

directed to release the admitted dues together

with appropriate interest within a time to be fixed

by this Court.

23. Heard the Learned counsel for the

petitioner as well as the Learned counsel for the

respondents.

24. Upon consideration of the rival

submissions and the material available on record,

this Court finds that there is no dispute with regard

to the fact that the petitioner was awarded the

works in question, completed the construction

work and thereafter carried out the maintenance

work in terms of the agreements. The respondents

have also not alleged any deficiency with regard to

the quality or quantity of the maintenance work

executed by the petitioner.

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25. What assumes significance is the

categorical stand taken by the respondents in

paragraph 14 of the counter affidavit, wherein it

has been admitted that the Executive Engineer,

Rural Works Department, Works Division, Birpur,

vide Letter No. 781 dated 09.06.2018 and

thereafter by reminder vide Letter No. 1270 dated

08.10.2020, forwarded requisitions to the higher

authorities seeking allotment of funds for payment

of the maintenance works. The said letters

correspond to Annexure-3 and Annexure-4 to the

Writ petition and have also been brought on record

by the respondents as Annexure C-1 and Annexure

C-2 to the counter affidavit. The aforesaid conduct

of the respondents clearly establishes that the

petitioner's claim towards maintenance charges

had already been scrutinized by the department

and the liability to make payment was duly

acknowledged by the competent authority. Had

there been any dispute regarding execution of the

maintenance work or the petitioner's entitlement,

there would have been no occasion for the

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Executive Engineer to forward requisitions

recommending allotment of funds for payment of

the petitioner's dues.

26. The subsequent plea taken by the

respondents regarding alleged irregularities in the

entries made in the Measurement Book and the

pendency of a departmental enquiry cannot, in the

facts of the present case, defeat the petitioner's

legitimate claim. The Measurement Book is a

departmental record maintained by the officials of

the respondents, and any procedural lapse or

irregularity therein cannot be made a ground to

deny payment for work which has already been

executed, verified and accepted by the

department. An internal administrative or

procedural issue within the department cannot

prejudice the rights of a contractor whose work

stands accepted and whose entitlement has

already been recognized by the department itself.

27. This Court is, therefore, of the

considered view that the petitioner cannot be

denied payment of the admitted contractual dues

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on account of any internal or technical issue in the

functioning of the respondent department. The

obligation to make payment for the maintenance

work duly executed by the petitioner rests squarely

upon the respondent authorities.

28. Once the respondents themselves

had acknowledged the petitioner's entitlement by

forwarding requisitions for allotment of funds,

there remained no justifiable reason to withhold

the payment for such a prolonged period that too

for 8 long years. The continued non-payment of

the admitted dues is arbitrary, unreasonable and

wholly unjustified.

29. Accordingly, the present Writ

petition deserves to be allowed. The respondent

Executive Engineer, Rural Works Department,

Works Division, Birpur, is directed to take all

consequential steps and ensure release of the

admitted dues payable to the petitioner towards

the maintenance works executed under the PMGSY

Scheme in connection with (i) Package No. BR-35R-

021, from Shiv Nagar to Kataiya Road; (ii) Package

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No. BR-35R-028, from Chhitahi Kanal to Gopalpur

Road (19th KM Koshi Bandhi); (iii) Package No. BR-

35R-033, from Shreepur to Mansapur Road; and

(iv) Package No. BR-35R-035, from Souranjan to

Thalha Road, as reflected in the requisitions

forwarded vide Letter No. 781 dated 09.06.2018

and Letter No. 1270 dated 08.10.2020, which form

Annexure-3 and Annexure-4 to the Writ petition

and Annexure C-1 and Annexure C-2 to the counter

affidavit, respectively.

30. The aforesaid exercise shall be

completed and the admitted amount payable to

the petitioner shall be released within a period of

two months from the date of receipt/production of

a copy of this order. In the event any further

administrative approval or allotment of funds is

required, the respondent Executive Engineer shall

immediately pursue the matter with the competent

authority so as to ensure compliance with the

directions contained in this order within the

stipulated period.

31. With the aforesaid observations,

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the writ petition stands allowed.

32. Interlocutory Application, if any,

shall stands disposed of.

Spd/-

(G. Anupama Chakravarthy, J)

AFR/NAFR NAFR

CAV DATE NA

Uploading Date 24.07.2026

Transmission Date