1. Identical dispute is involved in both the writ applications, which have been filed by the same petitioner in respect of two contracts which were awarded to the petitioner. The challenge is to the cancellation of the contract by the respondent Central Public Works Department by identical letters dated 11-1-2008, which is Annexure-16, in the first writ application and Annexure-15, in the second writ application. While cancelling the agreement earnest money of Rs. 48,87,500 and performance guarantee of Rs. 2,52,39,000 in the first case and similar amounts in the second case have been ordered forfeited.

2. During pendency of the writ applications fresh advertisements were issued inviting tenders the finalization of which was stayed by interim order of this Court passed on 6-2-2008, Central Public Works Department and its Officials connected with Rashtriya Sam Vikas Yojana (RSVY) have appeared and filed detailed counter-affidavit and rejoinder thereto filed by the petitioner.

3. Learned Advocate General of Bihar appeared suo motu in the general interest of the State of Bihar though State of Bihar is not a contesting party.

4. Parties were heard and with their consent the writ