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Patna High Court

Uday Shankar Prasad SinghversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The order directing recovery of Rs.2,65,019 from the petitioner's retirement benefits is without jurisdiction and is quashed, and the petitioner is entitled to the full contractual amount of Rs.3,08,886.

Summary

The petitioner, a retired Junior Engineer of Muzaffarpur Municipal Corporation, filed a writ petition seeking a mandamus directing the municipal authorities to pay the contractual amount of Rs.3,08,886 for a pipe‑installation work he executed in 2016‑17. Although the Assistant Engineer and Executive Engineer had recommended payment after verifying the work, the Municipal Commissioner later deducted the advance of Rs.2,00,000 from the petitioner's retirement gratuity under Memo No.556/2018, alleging unsatisfactory completion. The petitioner contended that the work was completed satisfactorily and that the deduction was illegal, while the respondents argued that required completion certificates and audit compliance were missing. The Court examined the recommendations of the subordinate engineers, found no evidence of any subsequent enquiry, and held that the Municipal Commissioner acted without jurisdiction in ordering the recovery. Consequently, the Court quashed the recovery order and directed payment of the full contractual amount, after applicable tax deductions, within eight weeks. The writ petition was therefore disposed of in favour of the petitioner.

Issues considered

  • Whether the Municipal Commissioner had jurisdiction to recover the advance amount from the petitioner's retirement benefits despite prior recommendations for payment.
  • Whether the deduction of the advance amount from the gratuity was illegal and ultra vires of the municipal authority.
  • Whether the petitioner is entitled to the full contractual amount of Rs.3,08,886 with applicable deductions.

Subjects

  • mandamus
  • writ petition
  • municipal corporation
  • contractual payment
  • retirement benefits
  • advance recovery
  • administrative law

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.1452 of 2022
     ======================================================
     Uday Shankar Prasad Singh Son of Ram Dharikshan Singh, resident of
     Village and P.O.- Baghakhal, District - Muzaffarpur, presently residing at
     New Colony, Balughat, Road no. 3, Muzaffarpur, the retired Junior Engineer,
     Muzaffarpur Municipal Corporation, Muzaffarpur.           ... ... Petitioner/s
                                        Versus
1.    The State of Bihar through the Chief Secretary, Government of Bihar, Patna.
2.   The Principal Secretary, Urban Development and Housing Department,
     Government of Bihar, Patna.
3.   The Municipal Commissioner, Muzaffarpur Municipal Corporation,
     Muzaffarpur.
4.   The Executive Engineer, Muzaffarpur Municipal Corporation, Muzaffarpur.
5.    The Assistant Engineer, Muzaffarpur Municipal Corporation, Muzaffarpur.
                                                             ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s    :      Mr. Vijay Kumar Singh, Advocate
     For the State           :      Mr. Subhash Pd. Singh, GA-3
                             :      Mr. Indeshwari Prasad, AC to GA-3
     For the Res No.3        :      Mr. Awadhesh Kumar, Advocate
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE RITESH KUMAR
     ORAL JUDGMENT
      Date : 16-02-2026
                    Heard the parties.

                        2. The present writ petition has been filed for the

      following reliefs:-

                                    (I)   For issuance of an appropriate writ
                                          in   the   nature    of    MANDAMUS
                                          commanding      and       directing   the
                                          Respondent          Authorities       and
                                          particularly the Respondent no.3 to
                                          pay the contractual amount of
                                          Rs.3,08,886/- for installation of the
                                          Pipe from the office of Animal
                                          Husbandry to the Road of Bibiganj
                                          which was done departmentally for
                                          which the petitioner had already
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                                               submitted        the   bill    and    after
                                               deduction of necessary deduction the
                                               bill of Rs.3,08,886/-was sanctioned
                                               and passed by all the Authorities in
                                               the year 2017 but the said amount of
                                               bill was not paid to the petitioner
                                               rather     the    advance     amount    of
                                               Rs.2,00,000/- taken by the petitioner
                                               for execution of the said work was
                                               illegally adjusted/deducted from the
                                               retiral dues of the issued petitioner
                                               vide memo no.556 dated 31.03.2018
                                               under      the     signature     of    the
                                               Respondent no.3.
                                        (II) For issuance of an appropriate writ
                                               in the nature of MANDAMUS,
                                               commanding         and    directing    the
                                               Respondent Authorities for payment
                                               of the aforesaid amount of the
                                               contractual work to the petitioner
                                               with interest as on the ground that
                                               the Respondents had arbitrarily
                                               deducted the amount of advance of
                                               the said contractual work from the
                                               retiral dues of the petitioner as also
                                               the delay caused in payment of the
                                               said amount to the petitioner is
                                               directly     attributable       to     the
                                               Respondents alone.
                         3. The brief facts giving rise to the present writ

         petition is that the petitioner was appointed as a Junior Engineer

         in the Muzaffarpur Municipal Corporation vide office order no.
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         519 dated 12.04.1984 and pursuant thereto, he gave his joining

         before the competent authority. In the year, 2016, a proposal

         was made by the Corporation for installation of the Pipe Line

         from the office of Animal Husbandry to Bibiganj Road and a

         decision was taken for doing the said work at the departmental

         level, for an estimated cost of Rs. 9,99,800/-. The petitioner was

         appointed as the Executing Agent and as per the assertion made

         by the petitioner, he completed the work as per specification and

         the said work was entered in the measurement book, which was

         duly verified by the Assistant Engineer and the Executive

         Engineer of the Muzaffarpur Municipal Corporation.

                         4. It is further case of the petitioner that for

         completion of the said work, an advance to the tune of Rs.

         2,00,000/- was given to the petitioner on 10.08.2016 and after

         completion of the work, the petitioner prepared a bill of Rs.

         3,39,436/-, from which necessary deduction towards Income

         Tax to the tune of Rs. 30,550/- was made and after deduction, an

         amount of Rs. 3,08,886/- was to be paid to the petitioner. The

         Assistant      Engineer,      Muzaffarpur    Municipal   Corporation

         recommended for payment of the said amount on 08.01.2017

         after adjusting the advance amount of Rs. 2,00,000/-, since the

         work was already completed and the said recommendation was
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         duly forwarded and recommended by the Executive Engineer of

         the Corporation on 20.04.2017, but the remaining amount to the

         tune of Rs. 1,08,550/- was not paid to the petitioner. In the

         meantime, after the attaining age of superannuation, the

         petitioner superannuated on 31.01.2017 and vide order

         contained in Memo No. 556 dated 31.03.2018, the gratuity

         amount of the petitioner to the tune of Rs. 8,98,398/- was

         sanctioned. However, a direction was issued by the Municipal

         Commissioner,           Muzaffarpur          Municipal   Corporation,

         Muzaffarpur to deduct the advance amount of Rs. 2,29,300/-

         and Rs.35,719/- i.e. total amount to the tune of Rs. 2,65,019/-

         from the retirement benefit of the petitioner and accordingly, all

         the payments were made to the petitioner after recovery of the

         above-mentioned amount to the Rs. 2,65,019/- from the

         retirement benefits of the petitioner.

                         5. It is submitted by the learned counsel for the

         petitioner that the petitioner filed several representations before

         the authorities concerned for payment of the total bill amount to

         the tune of Rs. 3,08,886/-, but no action was taken on the said

         representations.

                         6. A supplementary affidavit has been filed by the

         learned counsel for the petitioner, wherein the work order issued
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         in favour of the petitioner has been brought on record.

                         7. A counter affidavit has been filed on behalf of

         the respondent nos. 3 to 5 wherein it has been stated that

         although the petitioner claims to have completed the said work

         and submitted final bill to the tune of Rs. 3,08,886/-, but the

         final settlement and payment of the bill could not be

         executed/done due to the absence of complete documentation,

         including authenticated completion certificate, final bill, audit

         compliance etc.

                         8. It has further been submitted by the learned

         counsel for the State that the deduction to the tune of Rs.

         2,00,000/- from the retirement dues of the petitioner was done

         due to non-submission of appropriate utilisation and completion

         certificate, which is mandatory under the Bihar Finance Rules

         and the Municipal Audit Manual. The petitioner submitted the

         measurement book wherein details were mentioned, but upon

         verification of the work, the Municipal Commissioner found the

         work to be unsatisfactory and a noting was made to the effect

         that “The work is not found satisfactory. No further payment

         shall be made.” and accordingly recovery was made from the

         retirement benefits of the petitioner. The application filed by the

         petitioner was rejected on 24.03.2021, with a note that that the
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         “work is not satisfactory”. Further, in the measurement book, no

         remark has been made with regard to the fact that whether the

         bill is a first bill, partial bill or for the complete scheme and nor

         is there any written confirmation from the petitioner about the

         completion status of the work and even from perusal of the

         measurement book, it is not clear that whether the petitioner has

         completed the work satisfactorily or not, in these background,

         the order for recovery was made by the Municipal

         Commissioner by the impugned order dated 31.03.2018 and the

         same has not been assailed in the present writ petition.

                         9. A reply to the counter affidavit has been filed on

         behalf of the petitioner, wherein it has been categorically stated

         that the Assistant Engineer and the Executive Engineer have

         recommended in the measurement book that the work has been

         completed by the petitioner and recommended for making

         payment to the petitioner. During course of hearing in the

         present case on 09.02.2026, the Muzaffarpur Municipal

         Corporation was directed to verify that when the Assistant

         Engineer and the Executive Engineer had recommended for

         payment of the amount to the petitioner, since the work was

         already completed, then under what circumstances, the

         payments have not been made and if the said recommendations
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         were found incorrect, then what action has been taken against

         the Assistant Engineer and the Executive Engineer.

                         10. Today, when the matter has been taken upon,

         the learned counsel for the Muzaffarpur Municipal Corporation

         fairly submits that no action has been taken against the Assistant

         Engineer and the Executive Engineer, meaning thereby that the

         Corporation does not found fault with their recommendation.

                         11. Having heard the parties and after going

         through the records, this Court finds that the concerned

         authorities recommended for making payment to the petitioner,

         which is clear from Annexure-P/2 to the writ petition and they

         found the work to have been completed by the petitioner to be

         satisfactory. No further enquiry was made by the Municipal

         Commissioner, Muzaffarpur Municipal Corporation, since

         nothing has been brought on record to show that any further

         enquiry was conducted after the recommendation of the

         Assistant Engineer and the Executive Engineer for making

         payment, then the order passed by the Municipal Commissioner,

         Muzaffarpur Municipal Corporation contained in Memo No.

         556 dated 31.03.2018 is without any jurisdiction, since in the

         impugned order, whereby a direction was issued to recover Rs.

         2,65,019/- from the retirement benefits of the petitioner, no
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                      consideration has been made by the Municipal Commissioner,

                      Muzaffarpur Municipal Corporation.

                                      12. Accordingly, the direction for recovery of Rs.

                      2,65,019/- contained in Memo No. 556 dated 31.03.2018 is not

                      sustainable and is quashed. The petitioner is entitled for

                      payment of an amount to the tune of Rs. 2,00,000/-, which is

                      included in the recovered amount to the tune of Rs. 2,65,019/-

                      and is further entitled for payment of the remaining due amount

                      to the tune of Rs. 1,08,886/-. The petitioner will be paid the total

                      amount to the tune of Rs. 3,08,886/-, after taking into account

                      the income tax deductions, if any, to be made from the

                      petitioner.

                                      13. The entire exercise shall be completed within a

                      period of eight weeks from the date of receipt/production of a

                      copy of this order before the Municipal Commissioner,

                      Muzaffarpur Municipal Corporation.

                                      14. With the aforesaid observations and directions,

                      the present writ petition is disposed of.



                                                  (Ritesh Kumar, J)
AjayMishra/-
AFR/NAFR                NAFR
CAV DATE                NA
Uploading Date          25.02.2026.
Transmission Date       NA


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