State of West Bengal v B.K. Mondal & Sons (1962)

Contract I · Quasi-Contracts

Facts.

At the request of State officers, a contractor constructed buildings; the State used them but resisted payment on the ground that there was no valid contract complying with formalities.

Issue.

Can a person who does non-gratuitous work whose benefit another enjoys recover compensation without a formal contract?

Held.

Yes. Section 70 created a liability: the work was done lawfully and non-gratuitously, the State enjoyed the benefit, so it was bound to compensate the contractor, notwithstanding the defective contract.

Why it matters.

It is the leading Indian authority on s.70 and unjust enrichment — the model answer to “benefit accepted without a valid contract” problems.

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