Ram Balak Singh Construction PVT. LTD. vs. The State Of Bihar

Facts

The petitioner, Ram Balak Singh Construction Pvt. LTD., filed a writ petition seeking directions for payment of work done under agreement no. 01-F2/13-14 SCP (4515), including a 5-year maintenance period. The petitioner also sought payment considering the increase in GST rate from 12% to 18% and the applicability of GST provisions. Further, they requested payment of the entire amount with penal interest and litigation costs. The petitioner's counsel prayed for the petition to be disposed of in terms similar to a previous judgment in CWJC No. 13024 of 2022 (M/s. Raghoji House of Distribution Vs. The State of Bihar & Ors.). The respondents did not file a response, and the dispute remained unresolved. The Court noted that the dispute could have been resolved under the Bihar State Litigation Policy, 2011.

Held

The Court did not adjudicate the claims on merits, leaving them open for the concerned authority to decide in accordance with the law and principles of natural justice. The petition was disposed of in terms of the judgment in M/s. Raghoji House of Distribution (Supra), with directions that would govern this case mutatis mutandis. Specifically, Respondent No. 6, the Executive Engineer, Rural Works Department, was directed to examine the petitioner's case and ensure an early decision and disbursement of legitimate dues, if any, within two months. Failure to comply would result in a cost of Rs. 5,000/- to be recovered from the officer's personal salary. Respondent No. 3, the Engineer-in-Chief, was directed to ensure an effective grievance redressal mechanism, preferably on a digital platform, and to inform the public about its availability. Failure to comply with these directions would lead to proceedings for deliberate violation and potential stoppage of salary. The Court clarified that all issues on merit, facts, and law were left open for the decision-making authority. Liberty was reserved for parties to initiate fresh action if needed, and Respondent No. 6 was to file an affidavit of compliance within three months.

Key Issues

1. Whether the petitioner is entitled to payment for the work done and successfully completed under agreement no. 01-F2/13-14 SCP (4515), including the maintenance period, and if so, what is the quantum of such payment? 2. Whether the payment should account for the increase in GST rate from 12% to 18% and the applicability of GST provisions to the work done? 3. Whether the petitioner is entitled to penal interest on the outstanding amount from the date it became due until the date of actual payment? 4. Whether the petitioner is entitled to litigation costs? Petitioner's arguments: The petitioner argued that they have completed the work to the satisfaction of the respondent authorities and are entitled to full payment. They also contended that the payment should include the increased GST rate and that they are entitled to penal interest and litigation costs due to the respondents' failure to make timely payments. They relied on the prayer to dispose of the case in terms of the judgment in M/s. Raghoji House of Distribution. Revenue/State's arguments: No specific arguments were recorded for the respondents in the provided text. However, the Court referenced the Bihar State Litigation Policy, 2011, and Section 89 of the Code of Civil Procedure, 1908, suggesting a potential avenue for dispute resolution that the State might have utilized.