N.T. Abraham vs State of Kerala and Others

The appellant was a PWD contractor for carrying out certain construction work on behalf of the respondents. On account of a dispute between the parties an Arbitrator was appointed to adjudicate upon the dispute. The Arbitrator gave his Award on 10-3-1980. On 12-6-1980 a decree was passed in terms of the Award. Thereafter the respondents, on 19-9-1980 gave to the appellant a cheque for Rs. 8,03,568.75. As a consequence, full satisfaction was recorded on the decree.

On 16-11-1981, the 2nd respondent wrote a letter to the appellant stating that there had been a mistake in calculating the amount due under the said decree and there had been an excess payment of Rs. 1,59,939.75. By the said letter, the respondent asked the appellant to pay back the said amount of Rs. 1,59,939.75. Since the appellant did not return the said amount, the respondents have recovered this amount from other bills of the appellant. The appellant challenged this recovery by filing a writ petition which was dismissed. A writ appeal from the said decision has also been dismissed.

The High Court has rightly come to the conclusion that the dispute between the parties is of a civil nature which has to be agitated in an appropriate Forum. Whether there has been a bona fide mistake or not in paying the excess amount to the appellant and whether the appellant is entitled to retain the said amount of Rs. 1,59,939.75 or not are all matters which have to be decided under civil law and these disputes cannot be decided under Article 226 of the Constitution of India.

In our view, the High Court was right in coming to this conclusion looking to the nature of the dispute between the parties. The appeal is, therefore, dismissed.