Orissa High Court
M/S. D.K. Engineering & vs State Of Odisha And Others .... Opposite ... on 13 November, 2025
Author: Murahari Sri Raman
Bench: Murahari Sri Raman
IN THE HIGH COURT OF ORISSA AT CUTTACK
WP(C) No.30803 of 2025
M/s. D.K. Engineering & .... Petitioner
Construction
Mr. Gautam Mukharjee, Senior Advocate assisted
by Mr. Pratik Nayak, Advocate
-versus-
State of Odisha and others .... Opposite Parties
Ms. Aishwarya Das, ASC
CORAM:
THE HON'BLE THE CHIEF JUSTICE
AND
THE HON'BLE MR. JUSTICE MURAHARI SRI RAMAN
ORDER
Order No. 13.11.2025
01. 1. Challenging cancellation of tender relating to "construction of
CHC Building at Banarpal in Angul 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 seven
other bidders. 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 25th 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 22nd July, 2016 passed in WP(C) No.4011 of 2016 of this
Court rendered in the case of instant petitioner, wherein on the self-
same 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 Standing Counsel seeks an
accommodation to obtain instruction in this matter.
4. List this matter on 27th November, 2025.
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-I),
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
Standing Counsel, learned Senior Advocate proceeded to submit
that on 30th October, 2025, the Chief Engineer (Buildings-I),
Odisha, Bhubaneswar has invited fresh bids for work in question.
Perusal of invitation for bid dated 30th October, 2025 reveals that
the bid documents would be available on the website from 14 th
November, 2025 to 29th November, 2025 and the bids are scheduled
to be opened on 1st December, 2025.
6.1. Keeping in view the order dated 30th October, 2025 passed in
WP(C) No.30562 of 2025 and judgment dated 22 nd 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.
Accordingly, as an interim measure, the invitation for bids bearing
Bid Identification No.C.E.(B)-29/2025-26, dated 30th October, 2025
issued by the Chief Engineer (Buildings-I), Odisha, Bhubaneswar
shall remain stayed till the next date of listing.
(Harish Tandon)
Chief Justice
(M.S. Raman)
Judge
MRS/Laxmikant
Signed by: LAXMIKANT MOHAPATRA
Designation: Senior Stenographer
Reason: Authentication
Location: High Court of Orissa, Cuttack
Date: 17-Nov-2025 17:19:05
