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ORISSA HIGH COURT, CUTTACK
HARISH TANDON, CJ., MURAHARI SRI RAMAN, J.
Alokashirbad Panda, Son of Niranjan Panda – Petitioner
Versus
State of Odisha, represented through Principal Secretary Water Resources Department Government of Odisha and Ors. – Respondents
W.P.(C) No.29701 of 2024
Decided On : 09-01-2026
| Table of Content |
|---|
| 1. challenge to cancellation of tender decision. (Para 1 , 2) |
| 2. opposite parties' defense against petitioner's claims. (Para 3) |
| 3. court's hearing and procedural notes. (Para 4) |
| 4. petitioner's arguments regarding blacklisting. (Para 5) |
| 5. justifications provided by the opposite parties. (Para 6) |
| 6. court's references to analogous cases. (Para 7) |
| 7. court's directive to unblock petitioner’s registration. (Para 8) |
| 8. conclusion of the writ petition. (Para 9) |
ORDER :
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
Administrative actions must adhere to principles of natural justice, allowing reasonable justifications for compliance with contractual obligations, particularly regarding health-related delays.
Principles of natural justice and proportionality must be upheld in administrative decisions such as blacklisting, ensuring that adequate opportunity is provided to contractors to defend against adve....
Blacklisting a contractor without a show cause notice violates natural justice, and such actions must not be taken for mere breaches of contract.
The Petitioner's suppression of a material fact and approach to the Court with unclean hands led to the dismissal of the Petition.
Blacklisting without a show-cause notice is legally unsustainable, emphasizing procedural fairness in public procurement processes.
Disqualification from tender processes necessitates adherence to procedural fairness; blacklisting without notice is arbitrary and invalid.
Blacklisting as a penalty requires clear proof of intentional misconduct, and actions taken based on allegations alone may be deemed disproportionate and legally untenable.
Blacklisting a contractor for submitting a false experience certificate requires clear proof of intentional wrongdoing; failure to provide such evidence renders the action disproportionate.
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