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2025 Supreme(Online)(Ori) 5219

ORISSA HIGH COURT
M/S D.D BUILDERS LIMITED KALAHANDI – Appellant
Versus
STATE OF ODISHA – Respondent
WP(C) 25014 / 2025



IN THE HIGH COURT OF ORISSA AT CUTTACK WP(C) No.25014 of 2025 M/s. D.D. Builders Limited, Kalahandi Petitioner Mr. Sidhant Dwibedi, Advocate -Versus-

State of Odisha and others Opposite Parties Mr. Debashis Tripathy, Additional Government Advocate CORAM:

THE HON’BLE THE CHIEF JUSTICE AND THE HON’BLE MR. JUSTICE MURAHARI SRI RAMAN

ORDER

Order No. 15.12.2025

02. 1. Non-disbursal of amount relatable to price escalation has given rise to the filing of this writ petition invoking provisions of Articles 226 and 227 of the Constitution of India.

2. Sri Sidhant Dwibedi, learned counsel for the petitioner, referring to averments made in the writ petition, submitted that the petitioner had been declared lowest successful bidder in the tender for the work namely “Construction of Right Main Extension Canal from RD.00M to 960M including structures Lining Works & Service Road” of Upper Indravati Irrigation Project. As per agreement the petitioner was required to commence the work from

26.12.2006 and complete the same by 25.06.2009.

3. However, there was a delay in execution of the work owing to non-availability of land and inaccessibility to the work site during rainy season. This led the petitioner to seek for extension of time to complete the work, which was extended up to 25.06.2010 by the Chief Engineer, Upper Indravati Irrigation Project, Khatiguda in the district of Nabarangpur vide Office Order dated 22.03.2010. The petitioner, having completed the work within the extended period, claimed for consideration of disbursal of amount because of escalation of prices.

3.1. As such claim was not heeded to, a writ petition bearing W.P.(C)

No.1419 2009 was filed, wherein this Court vide order dated 13.02.2009 directed the Executive Engineer, Right Canal Division No.-II, Junagarh, Kalahandi to take a decision on the representation of the petitioner within the period stipulated therein. The Authority was brought to the notice of the circular dated 03.04.2007 issued by Works Department along with other clarificatory circulars issued on 19.11.2019 and 08.11.2021.

4. It is vehemently contended by learned counsel for the petitioner with reference to one of the circulars dated 08.11.2021 that the circular dated 03.04.2007 issued by the Works Department for the above said purpose still holds the field to consider release of escalation prices. Though persistent requests have been made to the Authority concerned, the same is not attended to. With constraint, the petitioner has approached this Court by way of filing this writ petition.

5. Heard Sri Sidhant Dwibedi, learned counsel for the petitioner and Sri Debashis Tripathy, learned Additional Government Advocate appearing for the opposite parties.

6. Perusal of record shows that the Government of Odisha has been issuing circulars clarifying the position with regard to escalation prices to be released in favour of the contractors condoning the delay in completion of work owing to certain circumstances which were beyond the control of such contractors.

7. Referring to the following clarification vide Letter No.IIM-

06/2021/27014/WR dated 15.10.2022 issued by the Department of Water Resources, it is highlighted at the Bar that:

“*** *** ***

8. On consideration of submission of second and final prices collection statement submitted by the petitioner-contractor, the Superintending Engineer, Upper Indravati Right Canal Division No.II, Junagarh on 11th July, 2025 recommended as follows:

“OFFICE OF THE SUPERINTENDING ENGINEER UPPER INDRAVATI RIGHT CANAL DIVISION NO-II AT/PO JUNAGARH, DIST-KALAHANDI Lr.No.711/WE Date._________

To The Chief Construction Engineer, Upper Indravati Irrigation Project, At/PO.Mukhiguda, Dist:-Kalahandi Sub:- Submission of 2nd and final price escalation Statement for the work “Construction of Right Extension Main Canal from RD-00 M to 960 M including structure, lining works and service road” vide Agreement No-153F2/2006-07.

Ref:-1. Our office Letter No-684, dated-01.07.2025

2. D.D Builders Ltd 09.0

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