1. By this writ petition filed under Article 226 of the Constitution of India petitioner M/s. Utkal Highways through its partners has questioned the propriety and correctness of the order dated 15-4-2004 whereby respondent No.2, the Executive Engineer has terminated the contract dated 11-3-2003 entered into between the Water Resources Department and the petitioner herein to execute the work of construction of Masonry Structures and earth work of main canal from 19 Km. to 26 Km. at the cost of Rs. 128 lakhs, on the ground that the alleged action of respondent No.2 is illegal, arbitrary and bad in law and the same has been passed without affording reasonable opportunity to the petitioner in violation of principles of natural justice.

2. Brief facts leading to filing of this writ petition are that Chief Engineer Mahanadi Godavari Basin, Raipur vide Annexure P/2 invited tenders from the contractors who were registered with Engineer-in-Chief C. G. Water Resources Department Raipur in A-4 to A-5 Class, for construction of 14 Nos. Masonry Structures and earth work of main canal from 19 Km. to 26 Km. of Kharkhara Mohadipat phase-2 at the cost of 127 laks in response to that petitioner firm