Jharkhand High Court
M/S. Vinod Kumar Jain vs The State Of Jharkhand on 25 August, 2025
Author: Rongon Mukhopadhyay
Bench: Rongon Mukhopadhyay, Deepak Roshan
2025:JHHC:25276-DB
IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P.(C) No. 6116 of 2023
M/s. Vinod Kumar Jain, a registered partnership firm, having its Head
Office at College Road, Jashpur Nagar, P.O. and P.S. Jashpur Nagar,
District Jashpur, State of Chhatisgarh, PIN No. 496331, through its
Authorized Signatory, namely, Mr. Kuldeep Jain, aged about 49 years, son
of Tarachand Jain, resident of Raj Bhawan Apartment, 101-A, Kamla Kant
Road, Harmu Road, Opp. Gaushala Chowk, Upper Bazar, Ranchi, P.O.
G.P.O., P.S. Kotwali, District Ranchi, Jharkhand, PIN-834001.
........ Petitioner
Versus
1. The State of Jharkhand, through its Principal Secretary, Road
Construction Department, having its office at Project Building,
Dhurwa, P.O. Dhurwa, P. S. Jagannathpur, District Ranchi
(Jharkhand), PIN 834004.
2. Joint Secretary, Road Construction Department, having its office at
Project Building, Dhurwa, P.O. Dhurwa, P.S. Jagannathpur, District
Ranchi (Jharkhand), PIN 834004.
3. Engineer-in-Chief, Road Construction Department, having its office
at Project Building, Dhurwa, P.O. Dhurwa, P.S. Jagnnathpur, District
Ranchi (Jharkhand), PIN 834 004.
4. Chief Engineer (Communication), Road Construction Department,
having its office at Engineers' Building, 1st Floor, P.O. and P.S.
Dhurwa, District Ranchi (Jharkhand). PIN 834 004.
5. Superintending Engineer, Road Construction Department, Road
Circle, Ranchi, having its office at Line Tank Road, Lakra Godam,
P.O. - G.P.O., P.S. Kotwali, District Ranchi (Jharkhand), PIN
834001.
6. Executive Engineer, Road Construction Department, Road Division,
Gumla, P.O. and P.S. Gumla, District Gumla (Jharkhand), PIN
835207. .......... Respondents
with
2025:JHHC:25276-DB
M/s. Vinod Kumar Jain, a registered partnership firm, having its Head
Office at College Road, Jashpur Nagar, P.O. and P.S. Jashpur Nagar,
District Jashpur, State of Chhatisgarh, PIN No. 496331, through its
Authorized Signatory, namely, Mr. Kuldeep Jain, aged about 49 years, son
of Tarachand Jain, resident of Raj Bhawan Apartment, 101-A, Kamla Kant
Road, Harmu Road, Opp. Gaushala Chowk, Upper Bazar, Ranchi, P.O.
G.P.O., P.S. Kotwali, District Ranchi, Jharkhand, PIN-834001.
........ Petitioner
Versus
1. The State of Jharkhand, through its Principal Secretary, Road
Construction Department, having its office at Project Building,
Dhurwa, P.O. Dhurwa, P. S. Jagannathpur, District Ranchi
(Jharkhand), PIN 834004.
2. Joint Secretary, Road Construction Department, having its office at
Project Building, Dhurwa, P.O. Dhurwa, P.S. Jagannathpur, District
Ranchi (Jharkhand), PIN 834004.
3. Engineer-in-Chief, Road Construction Department, having its office
at Project Building, Dhurwa, P.O. Dhurwa, P.S. Jagnnathpur, District
Ranchi (Jharkhand), PIN 834 004.
4. Chief Engineer (Communication), Road Construction Department,
having its office at Engineers' Building, 1st Floor, P.O. and P.S.
Dhurwa, District Ranchi (Jharkhand). PIN 834 004.
5. Superintending Engineer, Road Construction Department, Road
Circle, Ranchi, having its office at Line Tank Road, Lakra Godam,
P.O. - G.P.O., P.S. Kotwali, District Ranchi (Jharkhand), PIN
834001.
6. Executive Engineer, Road Construction Department, Road Division,
Gumla, P.O. and P.S. Gumla, District Gumla (Jharkhand), PIN
835207. .......... Respondents
with
M/s. Vinod Kumar Jain, a registered partnership firm, having its Head
Office at College Road, Jashpur Nagar, P.O. and P.S. Jashpur Nagar,
District Jashpur, State of Chhatisgarh, PIN No. 496331, through its
2025:JHHC:25276-DB
Authorized Signatory, namely, Mr. Kuldeep Jain, aged about 49 years, son
of Tarachand Jain, resident of Raj Bhawan Apartment, 101-A, Kamla Kant
Road, Harmu Road, Opp. Gaushala Chowk, Upper Bazar, Ranchi, P.O.
G.P.O., P.S. Kotwali, District Ranchi, Jharkhand, PIN-834001.
........ Petitioner
Versus
1. The State of Jharkhand, through its Principal Secretary, Road
Construction Department, having its office at Project Building,
Dhurwa, P.O. Dhurwa, P. S. Jagannathpur, District Ranchi
(Jharkhand), PIN 834004.
2. Joint Secretary, Road Construction Department, having its office at
Project Building, Dhurwa, P.O. Dhurwa, P.S. Jagannathpur, District
Ranchi (Jharkhand), PIN 834004.
3. Engineer-in-Chief, Road Construction Department, having its office
at Project Building, Dhurwa, P.O. Dhurwa, P.S. Jagnnathpur, District
Ranchi (Jharkhand), PIN 834 004.
4. Chief Engineer (Communication), Road Construction Department,
having its office at Engineers' Building, 1st Floor, P.O. and P.S.
Dhurwa, District Ranchi (Jharkhand). PIN 834 004.
5. Superintending Engineer, Road Construction Department, Road
Circle, Ranchi, having its office at Line Tank Road, Lakra Godam,
P.O. - G.P.O., P.S. Kotwali, District Ranchi (Jharkhand), PIN
834001.
6. Executive Engineer, Road Construction Department, Road Division,
Gumla, P.O. and P.S. Gumla, District Gumla (Jharkhand), PIN
835207. .......... Respondents
with
M/s. Vinod Kumar Jain, a registered partnership firm, having its Head
Office at College Road, Jashpur Nagar, P.O. and P.S. Jashpur Nagar,
District Jashpur, State of Chhatisgarh, PIN No. 496331, through its
Authorized Signatory, namely, Mr. Kuldeep Jain, aged about 49 years, son
of Tarachand Jain, resident of Raj Bhawan Apartment, 101-A, Kamla Kant
Road, Harmu Road, Opp. Gaushala Chowk, Upper Bazar, Ranchi, P.O.
2025:JHHC:25276-DB
G.P.O., P.S. Kotwali, District Ranchi, Jharkhand, PIN-834001.
........ Petitioner
Versus
1. The State of Jharkhand, through its Principal Secretary, Road
Construction Department, having its office at Project Building,
Dhurwa, P.O. Dhurwa, P. S. Jagannathpur, District Ranchi
(Jharkhand), PIN 834004.
2. Joint Secretary, Road Construction Department, having its office at
Project Building, Dhurwa, P.O. Dhurwa, P.S. Jagannathpur, District
Ranchi (Jharkhand), PIN 834004.
3. Engineer-in-Chief, Road Construction Department, having its office
at Project Building, Dhurwa, P.O. Dhurwa, P.S. Jagnnathpur, District
Ranchi (Jharkhand), PIN 834 004.
4. Chief Engineer (Communication), Road Construction Department,
having its office at Engineers' Building, 1st Floor, P.O. and P.S.
Dhurwa, District Ranchi (Jharkhand). PIN 834 004.
5. Superintending Engineer, Road Construction Department, Road
Circle, Ranchi, having its office at Line Tank Road, Lakra Godam,
P.O. - G.P.O., P.S. Kotwali, District Ranchi, PIN 834001.
6. Executive Engineer, Road Construction Department, Road Division,
Gumla, P.O. and P.S. Gumla, District Gumla (Jharkhand), PIN
835207. .......... Respondents
CORAM: HON'BLE MR. JUSTICE RONGON MUKHOPADHYAY
HON'BLE MR. JUSTICE DEEPAK ROSHAN
For Petitioners : Mr. Sumeet Gadodia, Advocate
Mrs. Shilpi Sandil Gadodia, Advocate
Mr. Ritesh Kumar Gupta, Advocate
(in all writ petitions).
For the Respondents : Mr. Sachin Kumar, A.A.G.-II,
Mr. Gaurav Raj, A.C. to A.A.G.-II.
(in all writ petitions)
11/25/08.2025
Per Deepak Roshan, J
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1. All the above writ petitions involve identical issue and hence tagged
together for hearing analogous and are, accordingly, disposed of by this
common Judgment.
2. In all the writ petitions, Writ Petitioner has prayed for release and payment
of due and payable amount of 'Bonus' to which it is entitled under the
contract for early completion of the work. Petitioner has further prayed for
a direction for payment of interest @ 12% per annum on the due amount
of 'Bonus' in terms of clause 43.1 of the contract agreement, which
provides for payment of interest on the amount certified for payment by
the Engineer, if not released within 28 days.
3. For the sake of brevity, facts pertaining to writ petition being W.P.(C) No.
6116 of 2023 are noted hereinafter.
4. The State of Jharkhand published Notice Inviting Tender vide e-Tender
Reference No. RCD/Gumla/365 dated 19.04.2018 pertaining to the work
of "Widening & Strengthening of Pokla (On SH-03)- Pokla Railway
Station to Kumhari (on MDR-37) Road (Total Length- 21.950 KM)
(including Bridge)". As per the said NIT, the approximate value of
the work was Rs. 49.16 crores and stipulated completion period was
prescribed as 18 months.
5. Petitioner participated in the said tender and was issued Letter of
Acceptance vide Letter No. 759 dated 20.07.2018 and scheduled date
of completion of the work was 30.02.2020.
6. Admittedly, Petitioner completed the work in question five months
prior to scheduled completion date i.e. 12.09.2019, which was duly
certified vide Completion Certificate issued vide Letter No. 999
dated 14.09.2019. Since the work was completed before the
scheduled completion date; Petitioner was entitled for 'Bonus' in
terms of clause 50 read with contract data of the tender document
and, accordingly, Petitioner filed representation for determination and
payment of 'Bonus' amount in its favour.
Consequent upon such representation, various correspondences
were exchanged between Executive Engineer, Superintending
Engineer and Chief Engineer and even amount of Bonus was
determined; but the same was not released in favour of Petitioner.
Under the said circumstances, Petitioner preferred a writ application
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before this Court being W.P.(C) 270 of 2022 praying therein for
release of Bonus amount as well as interest as stipulated in the
agreement.
7. Said writ application was disposed of on 28.01.2022 and Respondent
No.4-Engineer in Chief, Road Construction Department was directed
to take decision in the matter of release of Bonus amount with
applicable interest to Petitioner.
8. Thereafter, from the records, it is evident that Chief Engineer
(Communication), vide its Letter No. 1961 dated 24.11.2022, granted
approval of the amount of Bonus payable to Petitioner, but despite
grant of such approval, Bonus amount was not released in favour of
Petitioner, which compelled the Petitioner to approach this Court
again.
9. The facts of other three writ petitions are identical and, for the sake
of brevity, a tabulated chart is given hereinbelow, which would, in
summary, reflect the due and payable amount in all the above four
cases:-
Case No. Contract Early Date Completion Bonus Bonus Chief Engineer's
Start Date of certificate Amount percentage Approval Date
Completion date (in along with
Rupees) Approved Bonus
Percentage.
WP(C) No. 14.8.2018 12.9.2019 14.9.2019 2,08,06,971 5% of the Vide Letter No.
6116 of 2023 contract 1960 dated
price 24.11.2022, a
bonus of 5% has
been granted.
WP(C) No. 19.6.2018 13.3.2019 28.9.2021 23,78,58,86 6% of the Vide Letter No.
6072 of 2023 5 contract 1960 dated
price 24.11.2022, a
bonus of 6% has
been granted.
WP(C) No. 16.08.2019 28.12.2020 24.12.2021 3,75,83,887 8% of the Vide Letter No.
6073 of 2023 contract 1960 dated
price 24.11.2022, a
bonus of 6% has
been granted.
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WP(C) No. 25.04.2016 19.02.2018 13.11.2021 1,13,22,775 2% of the Vide Letter No.
6074 of 2023 contract 1960 dated
price 24.11.2022, a
bonus of 2% has
been granted.
10. Mr. Sumeet Gadodia, Ld. Counsel appearing for Petitioner, submits
that Respondent-authorities cannot withhold the amount of Bonus
accrued to Petitioner for early completion of the work. It has been
further submitted that Bonus amount was already sanctioned by the
competent authority on 24.11.2022, but despite thereof; same has not
been paid to Petitioner and, in terms of clause 43.1 of the Agreement,
Petitioner is entitled for interest @ 12% on the amount of Bonus.
11. It has also been submitted that after filing of writ petitions,
Respondents, in an arbitrary manner vide their Minutes of meeting
dated 22.02.2024, communicated to Petitioner vide letter dated
16.04.2024, passed order that Petitioner is not entitled for payment of
Bonus on the alleged ground that Petitioner has not complied with the
conditions of contract.
12. By inviting our attention to the said decision, it is submitted that the
ground stated in the said decision, on the face of it, is arbitrary and
amounts to raising a frivolous dispute from nowhere of the admitted
claim of Bonus which was already earlier sanctioned in favour of
Petitioner.
13. Per contra, Mr. Gaurav Raj submitted that, earlier, claim of petitioner
for Bonus was duly sanctioned but, later on, after verifying the
records of the case, it was found that Petitioner has not complied with
Clause 37 of the Contract Data as it has not submitted 'As Built
Drawing' required under the Contract Data.
14. It has been further submitted that Petitioner has not completed all
items of the work as stipulated under the contract and, therefore, it is
not entitled to claim Bonus.
15. We have examined respective pleadings of the parties and the terms
of the contract. Admittedly, clause 50 of the tender document
provided for payment of Bonus to a contractor in the event the
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contractor completes the work in question prior to stipulate
completion date. For brevity, clause 50 of the tender document is
extracted herein-under:-
"50 Bonus
50.1 If the contractor achieves completion of the whole of the works
prior to the Intended Completion date prescribed in Contract
Data the Employer shall pay to the contractor a sum stated in
Contract Data as bonus for every completed month which shall
elapse between the date of completion of all items of works as
stipulated in the contract, including variations ordered by the
Engineer and the time prescribed in Clause 17. For the purpose
of calculating bonus payments, the time given in the Bid for
completion of the whole of the works is fixed and unless
otherwise agreed, no adjustments of the time by reason of
granting an extension of time pursuant to Clause 28 or any
other clause of these conditions will be allowed. Any period
falling short of a complete month shall be ignored for the
purpose of computing the period relevant for the payment of
bonus."
16. A perusal of the aforesaid clause read with Contract Data would
clearly reveal that a contractor is entitled for Bonus @ 1% per month
of initial contract price for early completion of the work. Further,
Contract Data provided, inter alia, that maximum Bonus for early
completion of the work would be 6% of the contract price.
In other words, a conjoint reading of clause 50 read with
Contract Data would transpire that a contractor is entitled for Bonus
being an amount equivalent to 1% of the contract price for early
completion of the work in each month up to a maximum of 6%. Thus,
if the contractor completes the work by six months in advance; it
would be entitled for Bonus @ 6% and even if completion of work is
7 months in advance, Bonus would be up to a maximum of 6%.
17. In all the four cases, Completion Certificate has been issued by
Executive Engineer and said Certificate demonstrates that the
Contractor has completed the work in advance. Thus, the plea taken
by Respondents in the Counter Affidavit that the work was not
completed by contractor/petitioner clearly appears to be an
afterthought.
18. In fact, in all the cases, the amount of Bonus was already sanctioned
by the Chief Engineer vide order dated 24.11.2022, but the same was
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not paid to Petitioner, and, when Petitioner approached this Court,
plea has been raised that Petitioner has not complied with clause 37
of the Contract Data regarding non-submission of 'As Built
Drawings'. A bare perusal of clauses 37 and 38 of Contract Data
would reveal that for non-submission of 'As Build Drawings',
maximum penalty prescribed was Rs. 5.00 lakhs (five lakhs) and it
appears that said plea was taken by Respondents just in order to
avoid liability of interest as stipulated under clause 43.1 of the tender
document. Clause 43.1 reads as under:-
"43.1 Payments shall be adjusted for deductions for advance
payments, retention, other recoveries in terms of contract and
taxes at source, as applicable under the law. The Employer shall
pay the Contractor the amounts certified by the Engineer within
28 days of the date of each certificate. If the Employer makes a
late payment, the Contractor shall be paid interest on the late
payment in the next payment. Interest shall be calculated from
the date for which the payment should have been made upto the
date when the late payment is made at 12% per annum."
19. A bare perusal of aforesaid clauses would clearly reveal that if the
amount is duly certified as payable by the Engineer in favour of the
contractor and said amount is not paid within 28 days of issuance of
Certificate, the contractor is entitled for payment of interest from the
date when payment was to be made up to the date of payment @ 12%
per annum.
20. Having regard to the aforesaid facts and circumstances and the
discussions made hereinabove; we are of the considered opinion that
in the present set of cases, absolutely no disputed question of fact are
involved and despite the admitted fact that Petitioner completed the
work in advance and also despite the fact that Bonus was already
sanctioned in its favour, same was not released. Subsequently, as an
afterthought, decision was taken rejecting the claim of Bonus vide
Minutes of meeting dated 22.02.2024, communicated vide letter no.
1794(S) WE dated 16.04.2024.
At the cost of repetition, the reason recorded for rejection of
claim of Bonus, on the face of it, is arbitrary and not sustainable in
the eye of law. Accordingly, impugned communication contained in
Letter No. 1794 (S) WE dated 16.04.2024, is hereby, quashed.
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Respondents are further directed to release the admitted amount of
Bonus in respect of all the above-mentioned writ petitions i.e. an
amount of Rs. 2,08,06,971/- in W.P.(C) No. 6116 of 2023, Rs.
3,78,58,865/- in W.P.(C) No. 6072 of 2023, Rs. 3,75,83,887/- in
W.P.(C) No. 6073 of 2023, and Rs. 1,13,22,725/- in W.P.(C) No.
6074 of 2023, within a period of ten weeks from the date of this
order. In the event, Respondents fail to make payment of the amount
within aforesaid stipulated period, Petitioner would be further entitled
for interest from the date of grant of sanction of Bonus i.e.
24.11.2022 till the date of payment of the Bonus amount, @ 12% per
annum.
21. With the aforesaid direction, writ petitions are disposed of. Pending
I.A., if any, also stands disposed of. However, there shall be no order
as to costs.
(Rongon Mukhopadhyay, J)
(Deepak Roshan, J)
Amardeep/
AFR/
