[Cites 3, Cited by 0]
Orissa High Court
M/S. D.K. Engineering & vs State Of Odisha And Others .... Opposite ... on 23 December, 2025
Author: Murahari Sri Raman
Bench: Murahari Sri Raman
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C) No.30725 of 2025
M/s. D.K. Engineering & .... Petitioner
Construction
Mr. Gautam Mukherjee, Senior Advocate
Mr. Sidhant Dwibedi, Advocate
-versus-
State of Odisha and others .... Opposite Parties
Mr. Debashis Tripathy, Addl. Govt. Advocate
CORAM:
HON'BLE THE CHIEF JUSTICE
AND
HON'BLE MR JUSTICE MURAHARI SRI RAMAN
ORDER
Order No. 23.12.2025
02. 1. Challenging cancellation of tender relating to "development
of different sites covered under Daringbadi Master Plan in
Kandhamal District" as the performance of successful bidder-
petitioner is considered unilaterally by the Works Department to be
"very poor/unsatisfactory", the petitioner has approached this Court
by way of filing this writ petition invoking provisions under Articles
226 & 227 of the Constitution of India.
2. Learned Senior Advocate submitted that pursuant to
submission of bid documents intending to execute aforesaid work,
the petitioner is declared technically successful along with one other
bidder. The financial bid being opened, it was declared lowest
bidder.
2.1. On the apprehension that work order would be issued, the
petitioner started mobilizing resources, but to its dismay by way of
stigma with the remarks that its performance was poor and
unsatisfactory, it was intimated on 23rd October, 2025 that the tender
has been cancelled.
2.2. Learned Senior Advocate appearing for the petitioner
vehemently argued that such unilateral action of the Works
Department is unwarranted and uncalled for. The very basis of
cancelling the tender by observing that the petitioner's past
performance is very poor/unsatisfactory is bereft of any reason. Such
a remarks would affect its participation in future tender; thereby
impinging its right to carry on business under Article 19 of the
Constitution of India. As the remarks of the Works Department has
been made behind the back of the petitioner and without affording
opportunity to explain, such adverse remarks are liable to be
expunged. Learned Senior Advocate further submitted that identical
matter qua the present petitioner is pending in WP(C) No.30562 of
2025, wherein this Court has already issued direction to opposite
parties to file response. He further referred to Judgment dated 22 nd
July, 2016 passed in WP(C) No.4011 of 2016 of this Court rendered
in the case of instant petitioner, wherein on the selfsame adverse
remark, the bid was rejected and it was disqualified. In the said case,
this Court allowed the writ petition on finding that the authorities
have disqualified the bid of the petitioner without giving notice;
thereby such decision has been taken in violation of the principles of
natural justice.
3. At this stage, learned Additional Government Advocate
seeks an accommodation to obtain instruction in this matter.
4. List this matter on 13th January, 2026.
5. It is culled out from the arguments advanced by the learned
Senior Advocate appearing for the petitioner that without adhering to
principles of natural justice on the basis of adverse remark made by
the Works Department, the Chief Engineer (Buildings-II), Odisha,
Bhubaneswar has cancelled the tender, where the petitioner was
declared L-1 bidder. This Court in the case of present petitioner way
back in the year 2016 in the case referred to supra interfered with the
decision taken by the authority concerned that this petitioner's
performance was unsatisfactory and poor on the ground of
transgression of principles of natural justice.
6. By way of an additional affidavit furnished before this
Court today after serving a copy of the same on the learned
Additional Government Advocate, learned Senior Advocate
proceeded to submit that on 18th November, 2025, the Chief
Engineer (Buildings-II), Odisha, Bhubaneswar has invited fresh bids
for work in question. Perusal of invitation for bid dated 18th
November, 2025 and 1st corrigendum dated 2nd December, 2025
reveal that the bid documents would be available on the website
from 8th December, 2025 to 23rd December, 2025 and the bids are
scheduled to be opened on 24th December, 2025.
6.1. Keeping in view the order dated 30th October, 2025 passed
in WP(C) No.30562 of 2025 and judgment dated 22nd July, 2016
passed in WP(C) No.4011 of 2016, this Court finds prima facie case
is made out by the petitioner. In the event ultimately it is ascertained
that the decision to cancel the tender has been taken without
affording opportunity of hearing with respect to finding performance
is poor and unsatisfactory, serious prejudice would ensue to the
petitioner.
7. Considering the submissions made by the learned Senior
Advocate for the petitioner and adjournment sought for by the
learned Additional Standing Counsel for obtaining instruction
whether prior to making adverse remark with regard to poor
performance/ unsatisfactory work, the petitioner was afforded
opportunity of hearing, the petitioner is entitled to interim order.
8. Accordingly, as an interim measure, the invitation for bids
bearing Bid Identification No.C.E.(B)-31/2025-26, dated 18th
November, 2025 issued by the Chief Engineer (Buildings-II),
Odisha, Bhubaneswar shall remain stayed till the next date of listing.
9. The State-opposite parties are directed to file counter
affidavit within one week after reopening of this Court following the
Christmas vacation; rejoinder, if there be any, shall be filed within
one week thereafter.
(Harish Tandon)
Chief Justice
(M.S. Raman)
Judge
Sisira
Location: High Court of Orissa, Cuttack
Date: 24-Dec-2025 16:39:32
