JUDGMENT :

(Moushumi Bhattacharya, J.)

1. The petitioner claims to be a contractor engaged by the Kolkata Metropolitan Development Authority (KMDA) as the successful bidder in a tender floated by the KMDA for regular maintenance of the Beliaghata and Swabhumi underpasses including proper upkeep of the said underpasses. The petitioner has challenged an order dated 7.2.2023 passed by the Chief Engineer – II (Bridge), KMDA by which the KMDA cancelled the tender awarded to the petitioner and the petitioner seeks quashing of the same.

2. The petitioner, through learned counsel, says that the impugned action of cancellation is arbitrary and could not have been done in the face of a concluded contract between the parties. Counsel submits that the impugned cancellation has affected the petitioner’s rights under Article 19(1)(g) of The Constitution of India and that the ground for cancellation is de hors the clauses of the contract. It is further submitted that the petitioner was not given a hearing before the impugned decision thereby amounting to a breach of the principles of natural justice. Counsel submits that the petitioner has undertaken a substantial amount of work in erecting Unipoles and Gantries at Beliaghata and Swabhumi.

3. Learned counsel appearing for the respondents/KMDA takes a preliminary point of the writ petition not being maintainable on the ground that the challenge is devoid of any public law element. Counsel submits that the petitioner seeks enforcement of a non-statutory contract and the complaint is, at best, that of breach of contract. Counsel submits that the facts of the instant case would show that there is no statutory duty which has been imposed on the State respondents and further that the petitioner can seek to enforce its rights before a civil forum. It is further submitted that KMDA has taken an administrative decision to not proceed any further with the tender as that would lead to further loss of revenue for the Authority.

4. The controversy in the present writ petition rests on the letter of KMDA dated 7.2.2023 by which the work/tender given to the petitioner was cancelled. The reason given for the impugned cancellation is that the tender has been found to have “technical fault, non-specific and not well defined thus creating ambiguity for obvious reasons”. The other reason given is that the authority is incurring financial losses as a result of the tender. The letter of cancellation was preceded by a letter of 24.1.2023 from KMDA to the petitioner requesting the petitioner to stop all kinds of site activities with immediate effect until further notice. The reason given for the stop-work request is of a changed scenario of the maintenance activity of the E.M. Bypass being handed over from the KMDA to KMC.

5. The reason given for the stop-work would also be evident from an Order dated 1.12.2022 of the Urban Development and Municipal Affairs Department, Government of West Bengal which states that the maintenance of the E.M. Bypass which connects the northern and southern parts of the city of Kolkata, (starting from Ultadanga to Garia and running around the eastern ring of the city) will be handed over from KMDA to KMC, including certain activities mentioned in the Order.

6. The Company, M/s VS Advertising of which the petitioner is the sole-proprietor, emerged as the successful bidder in terms of the bid document floated by KMDA. KMDA issued Letters of Acceptance (Intent) in favour of M/s. VS Advertising on 27.6.2022 for the regular maintenance of Beliaghata and Swabhumi underpasses referring to the quoted amount, the earnest money, the tender number as well as the period of the license. Clause 4 of the letter states that the document shall be treated as the Letter of Intent and shall constitute a part of the contract agreement. Clause 12 also refers to the “contract documents”.

7. KMDA thereafter issued the work orders to M/s V.S. Advertising on 18.10.2022 for the work of regular maintenance of Bel