M/S RAM BARAI SINGH & CO. vs STATE OF BIHAR .

The Supreme Court held that the Division Bench of the Patna High Court erred in dismissing the appellant's writ petition on the grounds of an arbitration clause, as the agreement had ceased to exist after the completion of work and payment in 1992. The Court emphasized that the alternative remedy of arbitration was not applicable since the dispute arose long after the agreement's execution and the respondents had not raised this objection in previous proceedings. Consequently, the Court reinstated the appellant's right to seek judicial remedy for the delayed refund of the security deposit and related claims.