IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.32445 of 2025 M/s. Rutuparna Construction, …. Petitioner Bhubaneswar Represented by Adv.–

Mr. Achyutananda Pattanaik, Advocate -Versus-

State of Odisha and Others …. Opposite Parties Represented by Adv.–

Ms. A. Dash, Addl. Standing Counsel CORAM:

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

ORDER

Order No. 21.01.2026

01. 1. The instant writ petition is filed seeking a direction upon the opposite parties to release the amount shown in the escalation bill submitted to the authorities. It is averred in the instant wit petition that a tender was floated for execution of Rural Piped Water Supply work under the execution of a Rural Piped Water Supply Scheme to village Badhimuhan wherein the petitioner was adjudged as the successful bidder. The agreement was executed and the petitioner undertook the work in terms of the said tender and it is not in dispute that the final bill raised by the petitioner was duly paid by the authorities. Subsequent thereto, the petitioner submitted the escalation bill annexed to the writ petition and sensing that the same is kept pending by the authority, a representation was made to take a decision thereupon. Since the authorities have not taken any decision as of now, the instant writ petition is filed in this regard.

2. Learned Additional Standing Counsel appearing for the State- opposite parties submits that pursuant to the contract and the work having done successfully, the entire amount has been paid to the petitioner without any demur or deduction in this regard. It is further submitted that the clause relating to escalation of price as relied upon by the petitioner, is not applicable to the present contract, which is the subject matter of the instant writ petition.

3. Our attention is drawn to clause 61.14 of the agreement which runs thus:

“61.14 Price Variation/Escalation Clause : (Vide Works Deptt. Office Memorandum No.12606/W dt. 24.12.2012) This clause will be applicable to the contracts where original stipulated period of completion is more than 18 months.

Contract price shall be adjusted for increase or decrease in rates and price of Labour, Cement, Steel, Bitumen, Pipes, POL & other material component in accordance with the following principles and procedures as per formula given below:

(a) (i) REIMBURSEMENT/RECOVERY DUE TO VARIATION IN PRICES OF MATERIALS OTHER THAN (STEEL, CEMENT, BITUMEN, PIPES & P.O.L)

"If during the progress of the work the price of any materials (excluding the cost of steel, cement, bitumen & POL) incorporated in the work (not being materials supplied from the Engineer-in- charge's store) in accordance with clause there of increases or decreases as a result of increase or decrease in the Average Wholesale Price Index (all commodities), and the Contractor thereupon necessarily and properly pays in respect of that materials incorporated in the work such increased or decreased price, then he shall be entitled to reimbursement or liable to refund, quarterly as the case may be, such an amount, as shall be equivalent to the plus or minus difference of 85% in between the Average Wholesale Price Index (all commodities) which is operating for the quarter under consideration and that operated for the quarter in which the bid was received (last date of receipt) as per the formula indicated below provided that the work has been carried out within the stipulated time or extension thereof as are not attributable to him. If penalty is levied for delayed completion of the work, the contractor shall not be eligible to get price escalation on the above materials on the value of works executed during the extended period.

This clause will be applicable to the contracts where original stipulated period of completion is more than 18 months.

In the situation where the period of completion is initially stipulated in the agreement as less than 18 (eighteen) months but subsequently the completion period has been validly extended on