The unilateral cancellation of a tender without adequate notice or reasons violates principles of natural justice and contravenes contractual obligations.

JUDGMENT :

B.R. Sarangi, J.

Impugning unilateral cancellation of tender order no. 3232 dated 28.11.2019 and agreement dated 10.02.2020 by the Treasury Officer, District Treasury, Bargarh-opposite party no.3, vide letter dated 04.08.2020, the petitioner, a partnership firm, has approached this Court by way of this writ petition.

2. The factual matrix of the case, in hand, is that the Joint Director, Directorate of Treasuries and Inspection, Odisha, Bhubaneswar, vide letter dated 29.01.2019, directed the Treasury Officers of different districts to fill up vacant posts of peon in their Treasuries/Sub-Treasuries on outsourcing basis by following the provisions contained in Delegation of Financial Power Rules, 1978. Accordingly, Deputy Director, Directorate of Treasuries & Inspection Odisha, Bhubaneswar, vide letter no. 11890 dated 23.09.2019, instructed opposite party no.3 to call for tender on the recruitment of outsourced employees, as per Finance Department letter no. 37323/F dated 30.11.2018. Pursuant to such letter dated 23.09.2019, opposite party no.3, by issuing office order no. 3525 dated 28.11.2019, invited sealed quotations from eligible agencies/farms having valid EPF Code, ESI in their name issued by RPFC, Odisha Circle, Service Tax registration Certificate, ESI Registration Certificate and Labour License issued by the competent authority for providing man power for WCS and Peons to work in Bargarh Treasury and Sub-Treasury under Bargarh.

2.1 The petitioner, having satisfied the eligibility criteria, submitted its tender documents. For finalization of tender process, a six-member committee was constituted including Chairman, Convener and four members. The committee evaluated the technical bids of the aspired participants in the meeting dated 27.12.2019 and out of 21 numbers of quotations, shortlisted 12 participants, including the petitioner. The list of such successful bidders in the technical bid was carried out for consideration of their financial bids. The committee in its meeting held on 13.01.2020, after evaluation of financial bids, shortlisted the petitioner as L1 bidder and accordingly decided to award contract in its favour. Pursuant to such decision of the committee, on 07.02.2020 letter of intent was issued to the petitioner to assign the work of engagement of peons and watchman-cum-sweepers at the District Treasury Office and Sub-Treasury Offices at the quoted rate i.e. Rs.7748/- only and it was called upon to execute the agreement with stamp paper of Rs.100/- on or before 14.02.2020. On issuance of letter of intent dated 07.02.2020, the petitioner was issued with an work order on 10.02.2020 and agreement was also executed on the very same day between the Treasury Officer, Bargarh as the first party on one part and the petitioner as the second party on the other part for the period of one year to provide three numbers of peon and six numbers of watchman- cum-sweeper to the District Treasury, Bargarh and Sub-Treasuries located under the jurisdiction of District Treasury, Bargarh. After execution of agreement, the petitioner was directed to submit the performance security deposit amounting to Rs.93,690/- in favour of District Treasury Office, Bargarh towards one month salary of its outsourcing employees, which the petitioner complied by way of fixed deposit on 28.02.2020.

2.2 After following the procedure, engagement of 9 outsourced peons and watchman-cum-sweeper was undertaken. The said fact was also intimated by the Treasury Office, Bargarh to opposite party no.2, vide letter dated 29.02.2