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Orissa High Court
Alokashirbad Panda vs State Of Odisha on 9 January, 2026
ORISSA HIGH COURT : CUTTACK
W.P.(C) No.29701 of 2024
In the matter of an Application under Articles 226 and 227
of the Constitution of India, 1950
***
Alokashirbad Panda
Aged about 45 years
Son of Niranjan Panda
At: Arehikana, Aali, Aul
District: Kendrapada. ... Petitioner
-VERSUS-
1. State of Odisha
represented through
Principal Secretary
Water Resources Department
Government of Odisha
At: Mini Secretariat Building
Rajiv Bhawan, Bhubaneswar
District: Khordha.
2. Engineer-in-Chief
Procurement
Water Resources, Odisha, Bhubaneswar
Water Resources Department
Government of Odisha
At: Mini Secretariat Building
Rajiv Bhawan, Bhubaneswar
District: Khordha.
3. Chief Engineer
Rengali Right Irrigation Project, Dhenkanal
At/P.O./District: Dhenkanal.
4. Additional Chief Engineer
Rengali Right Irrigation Circle, Choudwar
At/P.O.: Choudwar
District: Cuttack.
5. Superintending Engineer
Rengali Right canal Division, Athagarh
At: Khuntakata
District: Cuttack. ... Opposite parties
Counsel appeared for the parties:
For the Petitioner : M/s. Sukanta Kumar Dalai,
Premananda Swain,
Satyabrata Mahapatra,
Bivasini Bhuyan,
Jagyaseni Bhuyan and
Subarna Keshari Panda,
Advocates
For the Opposite parties : Mr. Debashis Tripathy,
Additional Government Advocate
P R E S E N T:
HONOURABLE CHIEF JUSTICE
MR. HARISH TANDON
AND
HONOURABLE JUSTICE
MR. MURAHARI SRI RAMAN
Date of Hearing : 16.12.2025 :: Date of Order : 09.01.2026
O RDER
Refusal to accept the Additional Performance Security and
the Initial Security Deposit prepared on 09.07.2024 and
10.07.2024 respectively with respect to the work
"Construction of Catch Water Drain, Barbed Wire Fencing
and Service Road at both sides of Cut and Cover from RD
17200m to RD 17975m and Slope Protection Work at RD
17975m of Narasinghpur Branch Canal of RRIP (D/S)",
and the consequent decision cancelling the tender vide
Letter No.621, dated 03.09.2024 of the Additional Chief
Engineer, Rengali Right Irrigation Circle, Choudwar
(Annexure-11) and action of blocking the portal
registration of the petitioner by the Chief Engineer (PI&P),
State Procurement Cell, Odisha on 18.11.2024 in
pursuance of the recommendation of the Additional Chief
Engineer, Rengali Right Irrigation Circle, Choudwar vide
communication in Letter Memo No. EIC-EPROC-MISC-
0009-2021/44680, dated 19.11.2024 (Annexure-14) are
under challenge on the ground that such actions are
illegal, arbitrary, and in violation of the principles of
natural justice.
Case of the petitioner:
2. The petitioner, a „B‟ Class Contractor, found to be the
lowest bidder (for short, "L-1 bidder") following a
transparent lottery where 24 participants had quoted the
same price, i.e., 14.99% less than the estimated cost and
emerged as successful bidder having participated in the
tender floated by the Additional Chief Engineer, Rengali
Right Irrigation Circle. A Letter of Acceptance (LoA)
No.887, dated 27.06.2024 was communicated via e-mail
by the Superintending Officer, Rengali Right Canal
Division No.V, Athagarh, whereunder the petitioner was
instructed to attend the office within seven days for
execution of agreement along with certain documents,
inter alia Additional Performance Security (for short,
"APS") for an amount of Rs.35,70,698/- and Initial
Security Deposit (for short, "ISD"), for an amount of
Rs.2,69,998/- both in shape of National Savings
Certificate/Post Office Time Deposit Account/Kisan Vikas
Patra/Bank Guarantee pledged in favour of
Superintending Engineer, Rangali Right Canal Division
No.V, Athagarh from any nationalised/scheduled bank in
India counter guaranteed by its local branch at
Bhubaneswar/e-Bank Guarantee executed on the
National e-Governance Service Limited (NeSL).
2.1. Though pursuant to said letter of acceptance the
petitioner was supposed to attend the office on or before
03.07.2024, he could not do so as he was suffering from
Dengue from 01.07.2024 to 06.07.2024. Since banks
were closed on account of holidays on 07.07.2024 and
08.07.2024, the APS and ISD could be prepared on
09.07.2024 and 10.07.2024 respectively as instructed in
the letter of acceptance dated 27.06.2024. Due to
unforeseen circumstances the petitioner was prevented
for sufficient and reasonable cause to comply with the
instructions of the opposite parties.
2.2. To a Letter No.979, dated 09.07.2024 (Annexure-6) issued
by the Superintending Engineer, Rengali Right Canal
Division No.V, Athagarh the petitioner eliciting the
difficulties faced by him at the relevant point of time,
furnished a reply dated 09.07.2024 via e-mail (Annexure-
7). The opposite parties, however, rejected the request for
extension of time on the grounds that such flexibility was
not permissible under the rigid terms of the contract.
2.3. Despite the petitioner‟s willingness to execute the
agreement and deposits being made towards the APS and
ISD, the Additional Chief Engineer, Rengali Right
Irrigation Circle, Choudwar initiated measures to cancel
the tender in view of Clause 19(iii) of the Detailed Tender
Call Notice of the Bid Document ("DTCN", for short) read
with provisions contained in the Odisha Public Works
Department Code (for convenience be named as "OPWD
Code") by issue of Show Cause Notice vide Letter No.501
dated 24.07.2024 (be referred to as "SCN").
2.4. Responding to said SCN, a reply was filed by the
petitioner on 25.07.2024 explaining the circumstances of
health issues and during his sickness the e-mail could
not be checked; nonetheless, the APS and ISD being
prepared on 09.07.2024 and 10.07.2024 respectively,
within short period, i.e. seven days from 27.06.2024. In
spite of such clarification, the Additional Chief Engineer,
Rengali Right Irrigation Circle, Choudwar, proceeded to
cancel the tender vide Letter No.621, dated 03.09.2024
(Annexure-11) on the reason that the deposits towards
APS and ISD were made beyond the period envisaged in
Clause 19(iii) of the DTCN.
2.5. The petitioner is not only aggrieved by said decision of
cancelling the tender, but also with the action of the Chief
Engineer (PI&P), State Procurement Cell, vide Letter dated
19.11.2024 (Annexure-14) in blocking the portal
registration of the petitioner.
Reply of the opposite parties:
3. The opposite parties filed counter affidavit dated
16.04.2025 and an affidavit dated 24.04.2025 by
reiterating the stance that the petitioner failed to adhere
to the timeline specified in the Letter dated 27.06.2024
and the Letter dated 09.07.2024 was issued whereby the
petitioner was called upon to furnish reply explaining as
to why the tender would not be cancelled as he has failed
comply with the terms of Clause 19(iii) and Clause 35(ii)
of the DTCN. The explanation of the petitioner submitted
on 09.07.2024 did not find favour with the authorities
concerned. Second Show Cause Notice dated 24.07.2024
was issued intimating that there was no scope for
consideration of extension of time to furnish APS and ISD
and belated acceptance of such security could not be
accepted. Furthermore, the petitioner was again called
upon to furnish reply as to why the tender would not be
cancelled. Though the petitioner submitted his reply
dated 25.07.2024, rejecting his explanation, as he did not
comply with the conditions stipulated in the letter of
acceptance and for contravention of Clause 19(iii) of the
DTCN, the tender was cancelled.
3.1. It is further asserted that on 14.08.2024, the proposal for
blacklisting the petitioner was recommended by the
Tender Inviting Authority-Additional Chief Engineer,
Rengali Right Irrigation Circle, Choudwar to the Chief
Engineer, Rengali Right Irrigation Project, Dhenkanal. It
is affirmed as a fact that:
"7. That it is humbly submitted here that while the
proposal for blacklisting was pending, the Tender
Inviting Authority by Letter dated 18.11.2024
requested the Chief Engineer, State Procurement Cell
to block the portal registration of the petitioner as
provided under the DTCN and OPWD Code."
Hearing:
4. As the pleadings are completed, and as proposal for
blacklisting the petitioner is pending with the authorities
concerned for consideration in view of Appendix-XXXIV
appended to Volume-II of the OPWD Code and the portal
registration has been blocked with reference to Clause
23.3 of Appendix-IX(A) appended to Volume-II of the
OPWD Code read with Clause 19(iii) of the DTCN, which
prevents him to participate in any other tender, the
matter was taken up on 10.12.2025 for final hearing on
the consent of the counsel for the respective parties.
4.1. However, the matter was directed to be placed on board
on 16.12.2025 for clarification as no arguments were
advanced on 10.12.2025 with respect to challenge as to
Letter No. Proc-Circular-01-21/17121, dated 18.05.2024
issued by the Engineer-in-Chief, Procurement, Water
Resources, Odisha (Annexure-13). It is submitted by Sri
Sukanta Kumar Dalai, learned Advocate that the
petitioner confines its relief to the extent of consideration
of unblocking the portal registration, which has been
effected prior to blacklisting; thereby, jeopardising his
livelihood and appreciation of reason for delay in
submission of APS and ISD. At this juncture he would not
press for quashing the said Circular, reserving his right to
question the validity of such Circular dated 18.05.2024
addressed to all the Chief Engineers, the Basin Managers,
the Chief Construction Engineers, the Managing Director
of Odisha Construction Corporation and the Executive
Director, Odisha Lift Irrigation Corporation at any other
opportune time. It is asserted by him that the writ
petition can be disposed of on merit.
4.2. Heard Sri Sukanta Kumar Dalai, learned Advocate for the
petitioner and Sri Debashis Tripathy, learned Additional
Government Advocate for the opposite parties.
4.3. Hearing being concluded, the matter was reserved for
preparation and pronouncement of Judgment.
Rival contentions and submissions:
5. Sri Sukanta Kumar Dalai, learned Advocate submitted
that:
i. The amounts towards APS and ISD could be
deposited by the petitioner on 09.07.2024 and
10.07.2024 instead of 03.07.2024. The delay was on
account of illness of the petitioner which should
have been appreciated by the Tender Inviting
Authority. Despite no prohibition or interdiction in
law to accept the APS and ISD from the successful
bidder belatedly-- here only few days‟ delay due to
situation not within the control of the petitioner--
the authority concerned, defying the mandate of the
OPDW Code, has traversed beyond the scope of his
authority and jurisdiction.
ii. The petitioner is concerned about the contemplated
coercive measure of blacklisting and direction to
unblock the portal registration so as to facilitate him
to participate in other tenders.
iii. Referring to Clauses 23.1, 23.3, 23.3.1, 23.3.2 and
23.3.3 it is strenuously submitted that the authority
concerned having thrown the procedures provided in
the OPWD Code to the winds snatched the livelihood
of the petitioner by blocking the portal registration
even prior to blacklisting. Besides this, having
assigned no reason, much less plausible reason, the
authority has proposed to blacklist the petitioner,
which would tantamount to civil death.
iv. The opposite parties failed to follow the Guidelines
envisaged for blocking of portal registration in tune
with Clause 23.22 of Office Memorandum No.7885
dated 23.07.2013.
v. Amplifying further it is urged that before hearing the
petitioner, the authority concerned has condemned
the successful bidder by taking a decision adverse to
his claim. Not only have the authorities denied the
work to be executed by the petitioner
notwithstanding the fact that he has made deposits
towards APS and ISD within close proximity of
period stipulated by the authority concerned, but
also contemplating to deprive him of to eke out his
livelihood by restraining him from participating in
any other tender by blocking the portal registration.
5.1. Under the aforesaid circumstances, the learned counsel
for the petitioner fervently prayed for issue of writ of
mandamus to the opposite parties to act prudently by
unblocking the portal registration and withdraw the
proposal for blacklisting.
6. Justifying the action taken by the authorities invoking the
Codal provisions in blocking portal registration and
proposing to blacklist, Sri Debashis Tripathy, learned
Additional Government Advocate would urge that though
the petitioner claims to have complied with the terms by
furnishing proof of deposits towards APS and ISD
respectively on 09.07.2024 and 10.07.2024 respectively,
for the purpose of acceptance of tender, it was obligatory
on his part to comply with the terms of Office Letter
No.887, dated 27.06.2024, wherein it was categorically
stated that the aforesaid amounts were to be deposited in
shape of NSC/Post Office Saving Bank Account/Post
Office Time Deposit Account/Kisan Vikas Patra/Bank
Guarantee pledged in favour of the Superintending
Engineer, Rengali Right Canal Division No.V, Athagarh
within seven days from the date of issue of the letter, i.e.,
27.06.2024 (Annexure-4). In the Letter dated 09.07.2024
it was also stipulated that as he failed to furnish the
required APS and ISD by the scheduled date, he was
afforded opportunity to submit reply showing cause as to
why his bid would not stand cancelled. Hence no fault
can be imputed to the consequential action of blocking
the portal registration taken and the proposal for
blacklisting as the authority concerned is empowered to
exercise such power being conferred by virtue of Clause
23 of Appendix-IX(A) appearing at Volume-II of OPWD
Code.
6.1. It is arduously argued that such deposits being made on
09.07.2024 and 10.07.2024 beyond the period stipulated
in the Letter dated 27.06.2024 the opposite parties have
no other option but to cancel the bid as contemplated in
Letter dated 09.07.2024.
6.2. The authority having issued Letter dated 09.07.2024 and
Show Cause Notice dated 24.07.2024 granting
opportunity to submit explanation, ample opportunity
being granted, the action of the authority concerned
cannot be said to be tainted and such action is supported
by provisions contained in Clause 23 of Appendix-IX(A)
appended to Volume-II of the OPWD Code. As the
authority was not competent to consider the explanation
submitted by the petitioner that he was suffering from
illness which prevented him from complying with the
terms of Letter dated 27.06.2024 within the period
stipulated therein, the blocking of portal registration was
warranted and proposal for blacklisting the petitioner is
under consideration.
6.3. Therefore, the learned Additional Government Advocate
has made forceful submission not to allow the relief
claimed for by the petitioner.
Conclusion:
7. Having prayed for issue of writ of mandamus to the
opposite parties to unblock the portal registration as the
same preceded decision for blacklisting the petitioner, Sri
Sukanta Kumar Dalai, learned Advocate submitted that
the context and factual matrix of the present case is
identical to the case of Smt. Rinabala Sethi Vrs. State of
Odisha, W.P.(C) No.21309 of 2024. Since hearing of said
case was concluded on 10.12.2025 and kept reserved for
preparation and pronouncement of Judgment, the
present matter can be disposed of in the light of decision
in the said case. Sri Debashis Tripathy, learned
Additional Government Advocate, who appeared in the
said case and incidentally appeared in the present matter
also, conceded that the factual scenario of the instant
case is almost similar to the said case.
7.1. The Judgment in Smt. Rinabala Sethi (supra) has been
delivered on 22.12.2025.
7.2. Faced with such situation, and finding that factual matrix
of Smt. Rinabala Sethi (supra) and issues raised therein
are identical, the discussions and legal position exposited
therein would apply to the present case.
8. Under the above premise, perceiving that the blocking of
portal of the petitioner is not in consonance with the
procedure laid down in the OPWD Code, this Court,
therefore, sets aside the Order of blocking the portal
registration vide Letter dated 19.11.2024 (Annexure-14)
issued by the Chief Engineer (PI&P), State Procurement
Cell, Odisha on the recommendation of Additional Chief
Engineer, Rengali Right Irrigation Circle, Choudwar.
8.1. The opposite parties in the light of the decision rendered
by this Court vide Judgment dated 22.12.2025 in Smt.
Rinabala Sethi Vrs. State of Odisha, W.P.(C) No.21309 of
2024 may take appropriate decision with respect to
blacklisting of the petitioner, if the proposal as stated
above is still pending. In the wake of the above, this
Court, in view of legal position set out in the said
Judgment, directs the opposite parties to unblock the
portal registration within a period of seven days hence.
9. With the aforesaid observations and directions, the writ
petition stands disposed of. Pending Interlocutory
Application(s), if any, is disposed of. In the circumstances,
there shall be no order as to costs.
(HARISH TANDON)
CHIEF JUSTICE
Signature Not
(MURAHARI SRI RAMAN)
Verified JUDGE
Digitally Signed
Signed by: ASWINI KUMAR
SETHY High Court of Orissa, Cuttack
Designation: Personal
Assistant (Secretary-in- The 9th January, 2026//Aswini
charge)
Reason: Authentication
Location: ORISSA HIGH
COURT, CUTTACK
Date: 09-Jan-2026 17:03:27
