M/S Bansal Infrastructure vs State Of Odisha And Others .... Opp. ...
2025 Latest Caselaw 3608 Ori

Orissa High Court

M/S Bansal Infrastructure vs State Of Odisha And Others .... Opp. ... on 4 February, 2025

Bench: Arindam Sinha, M.S. Sahoo

                 IN THE HIGH COURT OF ORISSA AT CUTTACK
                                W.P.(C) No. 24822 of 2024

            M/s Bansal Infrastructure                ....           Petitioner
                                                      Represented By Adv. -
                                                     Mr. P.C.Nayak, Advocate
                                         -versus-

            State of Odisha and others               ....         Opp. Parties
                                                      Represented By Adv. -
                                                       Mr. D. Tripathy, AGA
                                CORAM:
                  THE HON'BLE MR. JUSTICE ARINDAM SINHA,
                               ACTING CHIEF JUSTICE
                                           AND
                     THE HON'BLE MR. JUSTICE M.S. SAHOO
                                          ORDER

04.02.2025 Order No.

01. 1. Mr. Nayak, learned advocate appears on behalf of petitioner

and submits, there was unilateral levy of penalty at ₹95,000/- on

allegation of delay attributable to his client. Consequence of the

imposition is taking away benefit of price escalation for work done

in the extended period.

2. With reference to imposition of penalty he draws attention

to the minutes of the technical committee meeting held on 23rd

September, 2022, serial no. 13. Decision taken is reproduced

below.

"13. Recommendation Recommended for of Engineer-in Chief sanction of E.O.T. for (P.H.) the period from 24.06.2018 to 24.05.2020 (701 days) in accordance with Para 3.5.5.(v) of OPWD Code Volume-I with levy of penalty for Rs.95,000.00 which is 10% of Rs.9,50,000.00 (value of work done for which the delay is attributable to the contractor) and without any monetary compensation for delay in completion of the work & without the benefit of price escalation on the value of work executed during the extended period."

3. Mr. Nayak relies on judgment of the Supreme Court in

State of Odisha and others v. Radheshyam Agrawal available at

2023 SCC OnLine SC 331 to submit, relevant clause(v) in para

3.5.5 of the OPWD Code stands extracted and reproduced in the

judgment. He submits, in paragraph-21 is the declaration of law.

The paragraph is reproduced below.

"21. In the communication granting extension of time with levy of penalty, penalty is levied by the State Government invoking Clause 3.5.5(v) of the OPWD Code. However, it is required to be noted that Clause 3.5.5(v) of the OPWD Code shall be applicable in a case where the contract is terminated. It permits the appropriate authority/State to terminate the contract with penalty when the progress of work is not as per the conditions of contract. Here, it is not a case of termination of the contract. Therefore, Clause 3.5.5(v) of the OPWD Code which has been invoked in the communication granting extension of time but with levy of penalty shall not be applicable at all."

He seeks interference.

4. Mr. Tripathy, learned advocate, Additional Government

Advocate appears on behalf of State.

5. State has adjournment to answer.

6. List under same heading on 18th February, 2025.

(Arindam Sinha) Acting Chief Justice

(M.S. Sahoo) Judge

dutta