Disengagement from government projects must respect natural justice and existing contractual rights; SHG re-engagement is subject to compliance with specified guidelines and conditions.

JUDGMENT :

Sashikanta Mishra, J.

Common facts and questions of law are involved in both these Writ Petitions for which both were heard together and are being disposed of by this common judgment.

Facts

2. Both the Petitioners are Women’s Self Help Group (WSHGs) functioning in the district of Puri. By order dated 06.6.2012 of the District Social Welfare Officer (DSWO), Puri both WSHGs along with another WSHG were selected to prepare wheat-based Ready To Eat (RTE) food (Chhatua) as per Government Guidelines to be provided to the eligible beneficiaries as Take Home Ration (THR) for a period of three months in respect of Kanas Block. While Maa Chandi WSHG (Petitioner in W.P.(C) No.16211/2025) was entrusted with the work in 21 Gram Panchayats, Maa Santoshi WSHG (Petitioner in W.P.(C) No.19637/2025) was engaged in respect of 7 Gram Panchayats under Kanas Block. Since then, both WSHGs have been functioning satisfactorily as per Government parameters. On 19.10.2010, the DSWO, Puri disengaged Maa Santoshi WSHG purportedly basing on the enquiry report of District Level Squad under the Chairmanship of A.D.M., Puri and the A.W.Cs. in which Maa Santoshi WSHG was involved, were tagged with Maa Chandi WSHG to avoid interruption in THR distribution. Being aggrieved, Maa Santoshi WSHG approached this Court in W.P.(C) No.29969/2020. By order dated 06.1.2023, this Court quashed the order of disengagement and directed the DSWO to conduct an inquiry by granting opportunity of hearing to the WSHG. In terms of such order, a District Level Committee was formed under the Chairmanship of Collector. The committee visited the premises and conducted inquiry and thereafter submitted report on 27.6.2023 absolving Maa Santoshi WSHG from all defects detected by the District Legal Squad on 6.10.2010. The committee further recommended that the WSHG be given a chance under close watch on preparation and delivery of THR. Basing on the report, the Collector vide letter dtd.26.10.2023 requested the Director ICDS and S.W., Orissa to allow the re-engagement of Maa Santoshi WSHG for preparation of THR in Kanas ICDS Project. Since no action was taken, the Petitioner again approached this Court in W.P.(C) No.10976/2024. By order dated 14.5.2024, a coordinate Bench of this Court directed the Director to act in terms of the Joint Inquiry Report and the communication made by the Collector within a stipulated period, if there is no legal impediment. By order dtd.04.12.2024, the Director taking note of the fact that alternative arrangement had been made by entering into contract with Maa Chandi WSHG, the case of Maa Santoshi WSHG may be considered once such contract period is over. By order dated 06.6.2025, the DSWO re-engaged Maa Santoshi WSHG for the work in respect of 7 numbers of Gram Panchayats of Kanas Block and such fact was also intimated to Maa Chandi WSHG by the CDPO, Kanas vide letter dated 10.6.2025. However, vide letter dtd.9.7.2025, the DSWO directed the CDPO not to allow Maa Santoshi WSHG as a stay order had been passed on 6.6.2025 by this Court in W.P.(C) No.16211/2025, filed by Maa Chandi WSHG.

Rival Contentions

3. It is contended on behalf of Maa Santoshi WSHG that Maa Chandi WSHG has no locus standi to challenge the re-engagement order passed in its favour, which was in compliance of the direction of this Court in W.P.(C) No.29969/2020 and W.P.(C) No.10976/2024. Maa Chandi WSHG never challenged the orders passed by this Court in the aforementioned Writ Petition. That apart, out of 28 Gram Panchayats, Maa Santoshi WSHG was allotted with 7 Gram Panchayats which were diverted to Maa Chandi WSHG because of its disengagement. Therefore, Maa Chandi WSHG can never claim any prejudice because the original fact situation as existing on 19.10.2020 has only been directed to be restored.

4. On the other hand, it is submitted on behalf of Maa Chandi WSHG that the order of the DSWO issued on 06.6.2025 in re-engaging Maa Santoshi WSHG with retrospective effect, 5 years after it