ORDER

Heard the parties.

2. The present writ petition has been filed for the following relief(s): –

i. To issue a writ/order/ direction in the nature of certiorari for quashing the order bearing No.1130/MSCL dated 17.06.2023 issued under the signature of the Respondent Managing Director- cum- Municipal Commissioner, Muzaffarpur Smart City Ltd by which it has been stated that the Board of Directors of the Company has terminated the Contract with immediate effect and to forfeit the performance security for poor performance and that the petitioner is not entitled to receive any agreed payments under the contract.

ii. To hold and declare that the impugned order of termination etc. dated 17.06.2023 is in violation of natural justice and also wholly without jurisdiction since beyond the terms of the contract. And hence, the petitioner is liable for its balance dues as against the work executed and as such direct the authorities to release the same at the earliest.

iii. To pass ex-parte/ad-interim relief during the pendency of the writ application preventing the authorities from proceeding to forfeit the performance security of the petitioner and or prevent them from encasing the same and not to take any further coercive action pursuant to the impugned order dt. 17.06.2023 such as black listing etc.

iv. To any other relief or reliefs for which the petitioner is found to be entitled in the facts and circumstances of the case.

3. The Writ Petitioner has filed Interlocutory Application No. 1 of 2023 seeking amendment of the prayer as follows and the same was ordered on 19.07.2023.: –

I(v) To quash the letter dt. 24.06.2023 issued by the Managing Director, Muzaffarur Smart City Ltd. by which pursuant to the order of termination dated 17.06.2023, the Bank guarantee of the petitioner bearing No. 08711GP 210018105 dated 11th August, 2021 for amount of Rs. 55 Lakh has been asked to be released from the Bank for its encashment.

(vi) To direct the Respondent Authorities to refund back the amount so encashed by the Respondents in terms of the Letter dated 24.06.2023.

4. The brief facts of the case are that the petitioner pursuant to tender called by the respondents for the purpose of selection of Project Management Consultant (PMC) to design, survey, bid process management and support for implementation of Smart City Project in Muzaffarpur, has participated in the said tender and, thereafter, being successful bidder was awarded the contract. The agreement was entered between the parties on 21.07.2021 which was initially valid till 21.07.2022. Pursuant to the said agreement the petitioner has furnished bank guarantee on 11.08.2021 for an amount of Rs.55/- Lakhs. It is the case of the petitioner that the petitioner has been executing the work diligently as per the terms of the contract. That during the execution of the work there was lot of communication between the parties for proper implementation of the contract and to that effect the petitioner was given notices, dated 05.03.2022, 15.07.2022, 10.08.2022. The petitioner has been implementing the suggestion and wherever necessary giving suitable replies to the said notice. Thereafter, the authorities duly taking into notice the contract period has been extended. The progress in the work for a further period of one year from 21.07.2022 or till the date of completion of the contract whichever is earlier on 05.09.2022. Learned counsel has stated that without giving any prior notice or issuing any show cause notice to the petitioner, the authorities have straightaway cancelled the contract on 17.06.2023 contrary to the terms and conditions of the agreement and also in violation of the principles of natural justice and equity. Learned counsel has stated that a perusal of the termination order reveals that the authority concerned without putting the petitioner on prior notice with regard to the violations, if any, of terms and conditions of the contract or intimating the proposed action to be taken has strai