Deepak Kumar Nayak vs State Of Odisha & Others
2023 Latest Caselaw 13681 Ori

            IN THE HIGH COURT OF ORISSA AT CUTTACK
                           W.P.(C) No.34949 of 2023
Deepak Kumar Nayak                  .....                               Petitioner
                                                       Mr. B.C. Patra, Advocate
                                    Vs.
State of Odisha & others            .....                        Opposite Parties

                                                        Mr. P.P. Mohanty, AGA
            CORAM:
                ACTING CHIEF JUSTICE DR. B.R. SARANGI
                MR. JUSTICE MURAHARI SRI RAMAN

                                           ORDER

06.11.2023 Order No. This matter is taken up through hybrid mode.

01.

2. Heard Mr. B. C. Patra, learned counsel appearing for the Petitioner and Mr. P.P. Mohanty, learned Additional Government Advocate appearing for the State-Opposite Parties.

3. The Petitioner has filed this writ petition challenging the imposition of penalty @ 0.25% of left over work for completion of work of "Construction of Nangalsila to Baragadia road under OMBADC in the district of Mayurbhanj during 2018-19 in respect of Agreement No.20 P-1 of 2019-20", communicated vide letter No.3393-RD-E-Karanjia-11(p)/2020-21 dated 02.02.2023 of the Chief Engineer (Plan Road) under Annexure-2.

4. Mr. B. C. Patra, learned counsel appearing for the Petitioner submitted that once the authorities have allowed the extension to complete the left over work beyond the stipulated time and in the present case such extension of time has been given up to 31.10.2022, there was no scope to levy of penalty as per Clause- (V) of paragraph 3.5.5 of the OPWD Code Vol.1. He also placed reliance on the case of Radheshyam Agrawal v. State of Odisha & Others (W.P.(C) No.14922 of 2019, disposed of on 08.04.2021), wherein accepting the contention that since the contract was not terminated but extension of time had been

granted without any price escalation and without any monetary compensation, this Court referring to Clause (V) of paragraph 3.5.5 of the OPWD Code, Vol.I held that the levy of the penalty @ 0.25% appears to be unjustified and, accordingly, quashed such imposition. The said case was carried before the Apex Court in Civil Appeal No.4934 of 2022 by the State Government. The Apex Court upheld the view expressed by this Court vide State of Odisha & Others v. Radheshyam Agrawal, 2023 SCC OnLine SC

331. Therefore, it is submitted that the imposition of penalty @ 0.25% cannot be sustained. Learned counsel appearing for the Petitioner further submitted that the present writ petition may be disposed of in terms of the aforesaid judgment, to which Mr. P.P. Mohanty, learned Additional Government Advocate appearing for the State-Opposite parties has raised no objection.

5. In view of the above submission, the question of imposition of penalty as has already been decided in the case of Radheshyam Agrawal (supra), the imposition of penalty @ 0.25% as per letter dated 02.02.2023 of Chief Engineer (Plan Road) under Annexure- 2 cannot be sustained and the same is, therefore, quashed.

6. Accordingly, the writ petition stands disposed of.

                                                                    (DR. B.R. SARANGI)
                                                                 ACTING CHIEF JUSTICE


                                                                         (M.S. RAMAN)
          Laxmikant                                                         JUDGE


Signature Not Verified
Digitally Signed
Signed by: LAXMIKANT MOHAPATRA
Designation: Senior Stenographer
Reason: Authentication
Location: HIGH COURT OF ORISSA, CUTTACK
Date: 07-Nov-2023 10:39:16