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Patna HC Orders Hearing on Road Contract Payment & GST Dispute

Case Law Details

TaxGuru Citation
2026 taxguru.in 5466
Case Name
Aastha And Saumya Construction Vs State of Bihar (Patna High Court)
Date of Judgement/Order
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Aastha And Saumya Construction Vs State of Bihar (Patna High Court)

Patna HC Directs Decision on Contractor Claims Due to Pending Representations; Contractor Seeks Foreclosure Due to Land Issues; Patna HC Issues Directions; Patna HC Directs Bihar Authorities to Consider Road Work Payment Claims; Pending Land Acquisition Led to Contract Dispute, Patna HC Intervenes.

The Patna High Court disposed of a writ petition filed by a contractor seeking multiple reliefs relating to a road construction agreement executed under the Road Construction Department, Government of Bihar. The project concerned widening and strengthening of the Jariso Chowk (SH-88) to Bharat Chowk (SH-56) bypass road under RCD Road Division, Benipur. The petitioner sought foreclosure of the agreement on the ground that complete land was not made available for execution of work, landowners were allegedly obstructing construction activities, and the cost of labour and materials had increased substantially over time.

Apart from foreclosure of the contract, the petitioner sought payment for various alleged additional and unpaid works. These included compensation for difference in soil work caused by excavation undertaken by private landowners, payment for additional leveling work not incorporated in the original estimate, and reimbursement of extra carriage charges for transportation of sand due to restrictions on movement of heavy vehicles over Rajendra Bridge. The petitioner also claimed payment for widening work and DLC work allegedly performed beyond the scope of the original estimate.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,886

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