2026 Supreme(Online)(Ori) 2771
IN THE HIGH COURT OF ORISSA AT CUTTACK
Murahari Sri Raman, J
Samrudhi Security Services – Appellant
Versus
State of Odisha – Respondent
W.P.(C) No.8719 of 2026
For the Appellants/Petitioners: Prashanta Kumar Nayak
For the Respondents: Debashis Tripathy
The court may grant interim relief and restrain the floating of a new tender if the petitioner establishes a prima facie case of arbitrary termination, particularly when evidence of satisfactory performance contradicts the grounds for termination.
Headnote:(A) Contractual Termination - Prima Facie Case - Termination of a contract based on allegations of unsatisfactory service is potentially arbitrary and mala fide when certificates from competent authorities certify the services as satisfactory. (Para 2, 3)
(B) Interim Relief - Restraint of Tender Process - Where a prima facie case of arbitrariness is established, the court may restrain the authority from proceeding with a fresh tender to preserve the status quo. (Para 4)
Issues: Whether the termination of the petitioner's contract and the subsequent floating of a fresh tender were arbitrary and mala fide in light of satisfactory service certificates.
ORDER
I.A. No.5266 of 2026
1. Predominantly, the writ petition raises twin issues. First, relates to the termination letter whereby and whereunder the agreement/contract entered into by and between the petitioner and opposite party No.3 stood terminated; Second, floating of a fresh tender by opposite party No.3 for similar and identical services provided by the petitioner.
2. Indubitably, the petitioner was awarded a contract for supply of manpower to maintain the sanitation work, collect and segregate the dry and waste garbage from door to door, sweeping and cleaning of roads and drains, lifting of garbage and cutting of grasses of 11 nos. of wards in the municipality. The agreement was entered into after being adjudged as a successful bidder, which is operative till 1st January, 2028. Out of the blue, the termination notice is given to the petitioner on 2nd March, 2026 alleging that the services rendered by the petitioner are not satisfactory and/or in accordance with the contractual terms. The said opposite party further proceeded in haste and floated a tender with intent to replace the petitioner, who was continuing to render such services till the finalization of the said tender. According to the petitioner, the termination is bad, invalid and an outcome of a malice, which would be evident that the competent authority issued the certificates pertaining to satisfactory services provided by the petitioner and, therefore, the allegation and/or grounds enumerated in the termination notice suffer from vice of the mala fide, arbitrariness and to favour a person by discriminating the petitioner.
3. In course of the hearing, the petitioner produces a certificate issued by Sanitation Expert, Deogarh Municipality certifying that the services provided by the petitioner are found satisfactory in all respects and last of such certificate appears to have been issued even after the termination notice is given. The said certificates are taken on record. Such being the fact discerned, we find that the petitioner has been able to make out a prima facie case for an interim order.
4. The opposite party No.3 is restrained from proceeding any further on the basis of the said tender until next date.
5. The petitioner is directed to file an additional affidavit disclosing the further certificates issued to the petitioner as placed before this Court by tomorrow (16th April, 2026).
6. Issue notice.
7. Mr. Debashis Tripathy, learned Additional Government Advocate appears for opposite parties No.1 and 2 and waives the service of notice. Let the notice be issued to opposite parties No.3 and 4 by speed post with A.D., making it returnable before the next date, requisites for which shall be filed within three working days.
8. List this matter on 6th May, 2026.