NAGARJUNA CONSTRUCTION COMPANY LTD. Vs. BHUBANESWAR DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) The Bhubaneswar Development Authority (BDA) had, on 05.11.2013, invited Expression of Interest (EOI) for the selection of executants for the work, namely, 'Construction of Affordable Housing (LIG)' at Subudhipur, Bhubaneswar. In response to the same, five participants had submitted their bids, out of which four were found to be technically qualified, which included the petitioner. After complying with all the formalities, the petitioner was found to be the lowest bidder in the financial bid and hence the bid of the petitioner was accepted on 02.05.2014. Pursuant thereto, on 16.05.2014, a bid contract/agreement was executed between the petitioner and the BDA. There were certain formalities which were to be complied, which included the environment clearance, as well as interest free mobilization advance, which all were complied with by the petitioner.

(2.) The record shows that after execution of the contract on 16.05.2014, on 25.08.2014, the Vice Chairman of BDA wrote to the Commissioner-cum-Secretary, Housing and Urban Development Department, Government of Odisha intimating the Government of the entire sequence of events which led to the acceptance of the bid of the petitioner and the execution of the contract. In the said letter, it was also mentioned that the budget estimate was duly approved by the authority and the administrative approval for the said project was also given by the Government of Odisha.

(3.) The case of the petitioner is that it had completed all formalities for execution of the work. But all on a sudden, on 05.08.2015, the petitioner received an order from the Chief Engineer-cum-Engineering Member, BDA, Bhubaneswar intimating that the agreement executed with the petitioner has been cancelled. Challenging the same, this writ petition has been filed.