BIBEKANANDA PATRA vs STATE OF ODISHA

WP(C)/16409/2024
ODHC010479552024
2026:OHC:281-DB
IN THE HIGH COURT OF ORISSA AT CUTTACK


W.P.(C) No. 16409 of 2024
CNR No.ODHC010479552024

Bibekananda Patra …. Petitioner

-versus-
State of Odisha and others …. Opposite Parties


Advocates appeared in this case:

For Petitioner : Mr. Shubhendu Kumar Parida, Advocate

For Opposite Parties-State : Mr. Debashis Tripathy,
Additional Government Advocate

CORAM:
THE CHIEF JUSTICE
HON’BLE
AND
HON’BLE M R JUSTICE CHITTARANJAN DASH

J U D G M E N T
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Date of Hearing and Judgment: 4 November, 2026
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HARISH TANDON, CJ.
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1. The challenge is made to the letters dated 10 March, 2023
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and 18 March, 2024 passed by the F.A.-cum-Special Secretary to
Government and the Executive Engineer, Mayurbhanj respectively
by which, calculation was made as per the Codal Procedure issued
by the Works Department vide O.M. No.15847/W dated 19.11.2019
and O.M. No.8189/W dated 07.06.2021.
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2.
It is fervently submitted that the aforesaid office
memorandum was the subject matter of challenge in W.P.(C)
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No.30191 of 2021 and while allowing the said writ petition on 8
September, 2023, a Division Bench of this Court quashed and set
aside the aforesaid Office Memorandums by which the said Codal
Procedure was directed to operate retrospectively.
3. To appreciate the aforesaid contention, a genesis of the
litigation is required to be succinctly narrated as under.
4. The petitioner was awarded the work for Up-gradation of
Thakurmunda- Dongadiha- Podadiha- Udala- Manitri- Baisinga-
Rupsa road, MDR-70 from km 50.770 to 55.100 km under One Time
ACA. The stipulated time for execution of the work was fixed at
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eleven calendar months, including the rainy season and 9 March,
2015 was to be treated as the date of commencement of the said
work. It is not in dispute that the petitioner completed the work and
submitted the RA Bills in terms of the work order and the price so
accepted by the parties.
5. A point was taken by the authorities that in view of the
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Office Memorandum dated 24 December, 2012, there is no fetter
on the part of the authorities to deduct certain amounts in case of
W.P.(C) No.16409 of 2024 Page 2 of 7

variation in the price of the raw materials, which was the subject
matter of challenge before this Court in W.P.(C) No.330 of 2013.
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The said writ petition was disposed of on 25 April, 2018 quashing
the said Office Memorandum.
6. The petitioner approached this Court by filing a writ
petition being W.P.(C) No.21303 of 2016 after the said judgment
was delivered and the authorities are taking shelter under the said
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Office Memorandum dated 24 December, 2012. The said writ
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petition was disposed of on 18 June, 2018 holding that the ratio of
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the judgment rendered on 25 April, 2018 in W.P.(C) No.330 of
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2013 squarely applies and the Office Memorandum dated 24
December, 2012 was quashed. Correspondingly, a direction was
passed upon the authorities to issue a fresh circular with regard to the
price variation/escalation clause in the contract in view of the
directions given in the case of All Odisha Contractors ’ Association
v. State of Odisha , reported in 2012 (II) OLR 586 .
7. It was further made clear that any deduction made from the
bills of the contractors or any payment made to the contractors in
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pursuance of the said Notification dated 24 December, 2012 shall
be refunded and/or adjusted, as the case may be. In compliance with
the said order passed in the writ petition filed by the petitioner at an
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earlier point of time, the Office Memorandum dated 19 November,
2019 was issued by the Commissioner-cum-Secretary to the
Government, Works Department, where a codal/contractual
provision regarding price adjustment clause due to increase or
decrease in rate and the price of labours, materials, fuels, lubricants,
plant and machineries, spare component to be incorporated in
DTCN/conditions of the contract and the same shall be regarded as a
part of the relevant clauses of the DTCN on and from the date of
issue of the said Office Memorandum.
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8. Subsequently, another Office Memorandum dated 7 June,
2021 was issued by the same authority to the effect that the said
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Office Memorandum dated 19 November, 2019 would operate
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retroactively between the periods from 7 July, 2012 to 18
November, 2019, subject to the following conditions mentioned
therein. The said Office Memorandum by which the earlier Office
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Memorandum dated 19 November, 2019 which was to operate
prospectively, was given a retroactive effect, the challenge was made
in W.P.(C) No.30191 of 2021 before this Court. However, in terms
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of the order dated 18 June, 2018, a letter was issued by the Works
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Department on 10 March, 2023 directing the authorities to take
appropriate steps to comply with the order passed in the said writ
W.P.(C) No.16409 of 2024 Page 4 of 7

petition by following the Codal Procedure under the Works
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Department dated 19 November, 2019 and 7 June, 2021.
9. The petitioner did not raise any objection after the said
letter was issued to the competent authority but felt aggrieved when
the Executive Engineer, Mayurbhanj (R&B) Division issued a letter
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dated 18 March, 2024 in compliance with the requisition made in
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the letter dated 10 March, 2023. The reason for such objection is
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basically founded upon the judgment dated 8 September, 2023
passed in W.P.(C) No.30191 of 2021, wherein the said Office
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Memorandum dated 7 June, 2021 was quashed and set aside on the
ground that the administrative authorities cannot direct the operation
of the administrative order from a retrospective effect or retroactive
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effect and, therefore, the said Office Memorandum dated 7 June,
2021 cannot stand.
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10. Since the Office Memorandum dated 19 November, 2019
was issued to operate prospectively, anything done prior thereto
cannot come within the purview thereof. Once the Court quashed the
aforesaid Office Memorandum before a final calculation is made, it
is imperative that the authorities would follow the mandate of the
ratio decidendi
law and the of the judgment rendered in this regard.
Any departure from the law declared by the Court is susceptible to
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be interfered with and the same cannot be regarded as a valid order
in the eye of law.
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11. We are conscious that the impugned letter dated 18 March,
2024 is issued in compliance to the direction passed in letter dated
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10 March, 2023, which was issued at the relevant point of time
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when the said judgment dated 8 September, 2023 was not in
existence yet, at the time of taking a final decision or complying
with the said direction, once it is made known to the authorities, it is
inconceivable that the authority would ignore the law declared by
this Court and proceed to follow the administrative mandate given to
them.
12. The said Executive Engineer has applied the Codal
Procedure retroactively when the subsequent Office Memorandum
was already quashed and set aside by this Court on such score. We,
thus, find that the exercise undertaken by the said authority and
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communicated vide letter dated 18 March, 2024 is violative of the
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judgment rendered by this Court on 8 September, 2023 and,
therefore, cannot be sustained in the eye of law.
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13. Accordingly, both the letters dated 10 March, 2023 and
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18 March, 2024 are hereby quashed and set aside. The authorities
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are directed to recalculate the price escalation in terms of the order
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dated 18 June, 2018 within four (4) weeks from the date of
communication of this order.
14. With these observations and direction, the instant writ
petition is disposed of.
(Harish Tandon)
Chief Justice


(Chittaranjan Dash)
Judge




Sisira
Signature Not Verified
Digitally Signed
Signed by: SISIRA KUMAR BEHERA
Designation: Junior Stenographer
Reason: Authentication
Location: High Court of Orissa, Cuttack
Date: 09-Nov-2026 17:14:17
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