SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Ori) 1040

IN THE HIGH COURT OF ORISSA AT CUTTACK
V. NARASINGH, J.
Trinath Shakti Group (Shg), Bhadrak - Petitioner
Versus
State Of Odisha – Respondent 
W.P.(C) No.19269 of 2019
Decided On : 06-05-2025

Advocates Appeared:
For the Petitioner:Mr. S.K. Mishra, Sr. Advocate
For the Respondent:Mr. S.P. Das, Asc, Mr. S. Mishra, Advocate (Intervener)

The court determined that the decision to rescind the Petitioner’s contract violated natural justice by not providing an opportunity to respond to allegations, necessitating adherence to procedural guidelines.

Headnote:(A) Odisha Supplementary Nutrition Programme (SNP) Guidelines - Violation of natural justice and administrative procedures - Writ petition challenging order of the Collector rescinding contract for supply of THR (Chhatua) by the Petitioner was filed - The decision to select new SHGs was based on an Appraisal Report identifying deficiencies, but without opportunity for the Petitioner to respond - Court emphasized the necessity of adhering to procedural fairness as per the guidelines. (Paras 5, 14-15, 27)

(B) Violation of natural justice - The Petitioner had a decade-long unblemished record in supplying THR and should have been afforded the chance to present their case before the termination decision was made. (Paras 10, 15-16)

Facts of the case:
The Petitioner, a women's self-help group, was supplying THR for over a decade under an agreement renewed annually, until the Collector's decision to replace them with new providers citing deficiencies in record-keeping and infrastructure.

Findings of Court:
The court ruled that, although the Collector had discretion to change suppliers, the decision lacked due process as required by the guidelines.

Issues: The critical issue was whether proper procedures were followed in rescinding the Petitioner’s contract under the guidelines.

Ratio Decidendi: The court held the principle of natural justice mandates that parties should be allowed to present their case, especially when civil consequences follow from decisions affecting their rights.

Result: The writ petition was disposed of with directions for the Petitioner to appeal, and status quo regarding supply of THR to be maintained pending the appeal.

Table of Content
1. petitioner’s long-term unblemished record in supplying thr. (Para 2 , 3 , 4 , 6)
2. allegedly insufficient grounds for rescinding the contract. (Para 9 , 12 , 15)
3. court's directive for appeal and status quo maintenance. (Para 10 , 27 , 28 , 29)
4. procedural safeguards emphasize natural justice in contractual disputes. (Para 14 , 19 , 21)
5. no inherent right to contract renewal after expiration. (Para 17 , 18)

JUDGMENT :

V. Narasingh, J.

1. Heard learned counsel for the Petitioner and learned counsel for the Opposite Parties.

2. The present Writ Petition has been filed assailing the letter dated 20.09.2019 issued by the Collector, Bhadrak under Annexure-5 as well as the enquiry report dated 10.09.2019 of the District Level Team headed by the Tahasildar, Chandabali under Annexure-4 by not allowing the Petitioner (SHG) to continue service of preparation and supply of THR (Chhatua) under SNP Feeding Programme.

3. It is the case of the Petitioner that he was entrusted with the work as supplier as SHG to undertake the supply of THR Chhatua for Chandabali Block.

The Petitioner had unblemished record since the date of such entrustment from 2011 and since the programme in question was an early one, in terms of the prevailing guidelines, it is agreed at the Bar that the same was renewed every year.

4. It is submitted by the learned counsel that lastly in the year 2018 there was an agreement which was entered into between the Government of Odisha to provide THR under SNP through WSHG for pregnant and lactating women and the period of agreement was from 28.09.2018 to 27.06.2019. The said agreement is on record at Annexure-2.

5. It is the submission of the learned Senior Counsel, Mr. Mishra that in view of the unblemished record of the Petitioner, it was looking forward to renewal. Learned Senior Counsel also refers to the policy of the Government which inter alia indicate that “the Collectors are to take the final decision on renewal of contract after a period of one year without waiting for formal communication from the Government in the matter”.

6. It is submitted that when the matter stood thus and the Petitioner was legitimately looking forward to renewal suddenly he received the communication at Annexure-5 by which the Collector had directed the CDPO, Tihidi of Chandabali-I & II and Dhamnagar ICDS Project for selection of new WSHGs in place of rescinding WSHGs under SNP within a period of extension of two months and assailing the same, the Petitioner is before this Court and the present lis is concerned with Chandabali-II, Trinath Shakti WSHG, Orasahi.

7. It is submitted by the learned Senior Counsel, Mr. Mishra for the Petitioner that on a bare perusal of the impugned order at Annexure-5, it is seen that the same has been passed on the decision of the District Appraisal Committee and the findings of the District Appraisal Committee are at Annexure-4.

8. Referring to the performance Appraisal Report at Annexure-4, which is the basis of issuance of impugned order at Annexure-5, it is submitted that under the heading infrastructure facilities it is mentioned in paragraph-11 clause-vi that Roosting Machine installed and purchased by WSHG (Yes/No) – No (Manually) and so far as maintenance of records under paragraph-12 is concerned, it is stated that the general ledger has not been updated and in this context both the alleged violations on account of infrastructure facilities as well as records maintained by the SHGs at Paragraphs-11 & 12 are extracted hereunder:-

“11. Infrastructure Facilities:-

xxx

xxx

xxx

vi. Roosting Machine installed and purchased by WSHG (Yes/No) – NO (Mannualy).

xxx

xxx

xxx

12. Records Maintenance By SHG:-

i) Cash Book and Bank A/C updated (yes/No): - Yes

ii) Purchase Register updated (yes/No): -Yes

iii) General Ledger updated (yes/No): -No

iv) Stock register of movable and immovable properties and dead stock: NO

v) Stock Register of raw material updated (yes/No): - Yes

vi) Stock Register of Chhatua prepared updated (ye

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top