Authority: High Court of Jharkhand, Ranchi

Order Date: 15/07/2026

Case Overview

  • Parties: Plaintiff – M/s Eagle Infra India Limited (registered office in Ulhasnagar, Maharashtra). Defendant – Jharkhand Urban Infrastructure Development Company Limited (JUIDCO) and its Managing Director.
  • Nature of Proceeding: Writ petition under Article 226 of the Constitution seeking release of pending contractual dues, payment for post‑O&M work, and release of a performance bank guarantee.
  • Background: Eagle Infra was awarded the Harmu River Rejuvenation Project contract in 2015. The construction work was completed on 31‑Oct‑2018 and the five‑year Operation & Maintenance (O&M) phase concluded on 31‑Oct‑2023. JUIDCO issued a Completion Certificate and, in a letter dated 29‑Jan‑2024, acknowledged completion of the project and O&M, stating that the final bill (R.A. Bill No. 29) was under scrutiny and that the site had not been handed over.
  • Petitioner’s Claims: (a) Release of R.A. Bill No. 29; (b) Release of O&M dues; (c) Payment for extra work performed from 01‑Nov‑2023 to the filing date; (d) Release of the performance bank guarantee.
  • Respondents’ Arguments: Claimed that monetary claims under a commercial contract should be pursued via arbitration or civil suit; raised a limitation defence (three‑year period) and alleged quality objections without furnishing evidence; insisted the bank guarantee must be retained until full project completion.
  • Key Admissions: Respondents, through counsel, admitted that the bank guarantee had been released 2‑3 days prior to the hearing. They also admitted that the work was completed and that the amount under R.A. Bill No. 29 and O&M dues were pending due to fund availability issues.
  • Legal Analysis: The Court examined Supreme Court precedents (ABL International Ltd., Utkal Highways Engineers, etc.) establishing that monetary claims arising from contracts with the State are maintainable under Article 226, even where factual disputes exist, provided they do not require elaborate evidence. The Court found no substantive dispute on completion, quality, or entitlement to payment.
  • Limitation Defence: Rejected, noting that the petition was filed within three years of the O&M expiry (31‑Oct‑2023) and that the limitation period therefore did not bar the claim.
  • Arbitration Clause: Dismissed the respondents’ contention that the matter must be referred to arbitration, holding that there was no genuine dispute requiring arbitration.

Final Outcome

  • The writ petition is allowed.
  • JUIDCO is directed to immediately release the pending R.A. Bill No. 29 and disburse all O&M dues.
  • JUIDCO must also pay Eagle Infra for the extra sixteen months of work from 01‑Nov‑2023 to the filing date, with delayed‑payment interest at 10% per annum from the date each amount fell due.
  • The bank guarantee has already been released, rendering that specific prayer moot.
  • All ordered amounts must be paid within sixty days of receipt of the copy of this order.

Topics: Court Order, Contractual Dues, Infrastructure Project