IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No.3697 of 2008 M/S PARTHEW ENGICON PVT.LTD. Versus BIHAR STATE WAREHOUSING CORPORATION. ----------- 2. 24.6.2008 Heard learned counsel for the petitioner and learned counsel for the Bihar State Ware Housing Corporation. The petitioner has approached this Court for a direction upon the respondents to pay its entire balance dues along with statutory as well as penal interest for constructing the Bihar State Ware Housing Corporation Godown at Arrah to the extent of Rs. 3,36,584/- and a further direction to refund the 5% of security deposit which has been withheld by the respondents while making payment of Rs. 74,08,380/- and also to release the National Saving Certificates worth Rs. 3,71,000/- which has been deposited by the petitioner with the respondents as earnest money in accordance with the terms of the contract. The petitioner was awarded a contract for the construction of godown at Arrah by the Bihar State Ware Housing Corporation and he completed the same as per the terms and conditions. The petitioner had deposited the earnest money of Rs. 3,70,500/- in terms of the said contract by depositing the aforesaid NSCs and further while the bills were being paid deduction of 5% as security deposit as well as statutory tax deduction was made and ultimately the petitioner was paid an amount of Rs. 74,05,043/-. It is claimed by the petitioner that the job has been completed in terms of the contract between the parties on 1.7.2005 and the godown has thereafter been booked after completion from 14.7.2005. It is - 2 - submitted that although the bills were paid but after making deduction of 5% as security deposit. The petitioner further claims that the amount of Rs. 3,71,000/- in the form of N.S.C. deposited by him as the earnest amount has not been released by the respondents authority. In the counter affidavit filed on behalf of the respondent Bihar State Ware Housing Corporation, the facts as contended by the petitioner are not denied and only ground taken for non-payment is that an Expert Committee has been constituted for examining the construction of godown as well as for investigating the procedure of tendering etc. However, when the report of the Expert Committee was placed before the Executive Committee on 28.12.2007, it was again decided to get the work of Sitamarhi and Forbesganj examined through the Expert Committee and on the basis of the report of the said Committee payment of other project would be considered. This Court considers the aforesaid stand of the Bihar State Ware Housing Corporation clearly unreasonable and arbitrary. There is nothing in the counter affidavit to indicate that the petitioner had not fulfilled the terms of the contract and it is not even the case of the respondents that the petitioner has been awarded the contract of Sitamarhi and Forbesganj whereas contract awarded to him has been duly executed by the petitioner. In the aforesaid facts and circumstances, the claim of the petitioner is practically admitted by the Corporation and the payment has not been made on extraneous consideration only. It is, therefore, directed that the authorities of the Bihar State Ware Housing Corporation shall pay - 3 - the balance amount under the bills of the petitioner and also refund the earnest money deposited in the form of N.S.C. within a period of six weeks from the date of receipt /production of a copy of the order. It is further directed that if the said amounts are not paid/refunded to the petitioner within the aforesaid time then the petitioner shall be entitled for payment of interest at the rate of 15% per annum from the said date. The writ application is allowed with the aforesaid directions/observations. P. Kumar (Ramesh Kumar Datta, J.)