The High Court
Case Details
IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.22172 of 2025 Hindustan Graphics, Khurda …. Petitioner State of Odisha and others …. Opposite Parties -Versus- Advocates appeared in this case: For Petitioner
Legal Reasoning
: Mr. Sidheswar Mallik, For Opposite Parties Advocate : Mr. Manoj Kumar Mishra, Senior Advocate along with Mr. T. Mishra, Advocate for O.P. No.3, Ms. Aishwarya Dash, Additional Standing Counsel for State, Mr. J.K. Mohanty, Advocate for O.P. No.2 (CMC) CORAM: HON’ BLE THE CHIEF JUSTICE AND HON’BLE MR. JUSTICE MURAHARI SRI RAMAN J U D G M E N T -------------------------------------------------------------------------------- Date of Hearing and Judgment : 4th September, 2025 -------------------------------------------------------------------------------- HARISH TANDON, CJ. 1. At the very outset, we must record that the instant writ petition is pre-mature. W.P.(C) No. 22172 of 2025 Page 1 of 6 2.
Decision
The writ petition came to be filed by the petitioner raising an issue that the Cuttack Municipal Corporation (CMC) cannot award the contract to a person, who is the single bidder and, therefore, prayed for not only quashing and setting aside the Tender Call Notice (TCN) dated 11th June, 2025 but also the Letter of Acceptance (LoA) dated 23rd July, 2025. 2.1. So far as the prayer for quashing the TCN dated 11th June, 2025 is concerned, we do not find there is any element of interference. The conditions, which were enshrined therein, though sought to be projected as onerous and restricted or there was no wide publication of the same, solely on the mere allegation, we do not find that the interference should be made when the authority has taken all possible steps to make the said tender duly advertised and invite the bid from the intending participants. 2.2. So far as the LoA is concerned, as in the opening paragraph we have indicated that the instant writ appears to be premature, is further corroborated from the stand of the CMC that they have not finalized the tender as of now. W.P.(C) No. 22172 of 2025 Page 2 of 6 3. Since the tender is still at the stage of being finalized, the question of awarding the contract or the LoA cannot and does not arise. Our attention is drawn to a letter dated 30th August, 2025 issued by the CMC to the Director, Municipal Administration & Ex- Officio Special Secretary to Government, Housing & Urban Development Department, Odisha, wherein the said Corporation sought for a clarification and/or instructions whether to go ahead with the single bid. 4. The genesis of the said letter was founded on an amendment having brought to the Odisha General Financial Rules, 2023 (Financial Rules, 2023) through an Office Memorandum dated 4th June, 2025 wherein Rule-204 of the said Financial Rules, 2023 has undergone a sea change. Sub-rule (xxii) of the said Rule-204 has been substituted by the following:- “ (a) Lack of competition as mentioned in sub-para (xxi) above shall not be determined solely on the basis of the number of Bidders. Even when only one Bid is submitted, the procuring authority may accept the single bid provided following conditions are satisfied: 1) the procurement was adequately advertised and sufficient time was given for submission of bids. 2) the qualification criteria were not unduly restrictive; and 3) prices are reasonable in comparison to market values. W.P.(C) No. 22172 of 2025 Page 3 of 6 (b) The procuring Authority shall obtain the approval of next higher authority, on recording the following certificate before acceptance of the single bid. I _________ (designation) certify that the procurement was satisfactorily advertised, the qualification criteria were not unduly restrictive, and prices are reasonable in comparison to market value. Signature with designation Note: The provision of acceptance of single bid will be applicable in the following cases: i. When only one eligible / technically qualified bid is received; ii. When multiple bids are received but only one bid is found to be eligible/technically qualified.” 5. Correspondingly, several other rules of the said Financial Rules, 2023 have also been amended/substituted and/or replaced by several provisions, but we are concerned with the sub-rule (xxii) of Rule-204, where the notion of awarding the contract to a single bidder was introduced subject to the conditions enshrined therein. 6. The CMC was grappling with the earlier letter No.24628 dated 5th September, 2018 issued by the Housing & Urban Development Department, Government of Odisha, where a complete embargo was imposed that the Municipal Corporation shall not accept the proposal of a single tender under any circumstances. The CMC was under the impression that the letter dated 5th September, W.P.(C) No. 22172 of 2025 Page 4 of 6 2018 runs counter to the Office Memorandum dated 4th June, 2025 and, therefore, the clarification is also needed in this regard. 7. Indubitably, once the subsequent amendment has been brought in the Financial Rules, the instructions and/or guidelines issued at the pre-amendment stage receive its natural death and, therefore, there was no necessity for seeking a clarification. 8. Be that as it may, since the approach has already been made to the Government Department not only to issue a clarification in view of the perceived inconsistency between the aforesaid communications, it is inconceivable and improbable that the Government Official will show dormant and lethargic attitude in not taking a prompt decision. The tender was issued by the CMC to ensure seamless service, which has been bestowed upon them by the legislation and, therefore, if the tender is not finalized showing alacrity, it has ramification as the beneficiary of such services may be deprived. 9. Since the Government appears to be an authority, which is accepted by learned Additional Standing Counsel, to take a decision whether a single bid can be accepted or not, the competent authority W.P.(C) No. 22172 of 2025 Page 5 of 6 must take a prompt decision and communicate the same to the CMC to do the needful. 10. We, therefore, direct the competent authority i.e. opposite party No.1 to take immediate decision on the basis of letter dated 30th August, 2025 and communicate the same to the CMC within two weeks from the date of communication of this order for future action. 11. Despite the fact that the technical and financial bids are opened by the CMC, the contract has not been entered into because of the lack of decision taken by the State-authority and, therefore, there cannot be any subsisting grievance of the petitioner in this regard. 12. With these observations, this writ petition is disposed of. (M.S. Raman) Judge (Harish Tandon) Chief Justice M. Panda/ S.K. Behera Signature Not Verified Digitally Signed Signed by: SISIRA KUMAR BEHERA Designation: Junior Stenographer Reason: Authentication Location: High Court of Orissa, Cuttack Date: 09-Sep-2025 18:34:15 W.P.(C) No. 22172 of 2025 Page 6 of 6