As per case facts, the Petitioner, a works contractor, was awarded a road construction project. The contract estimates indicated Kupari Quarry as the source for minor minerals. However, this quarry ...
W.P.(C) No.18144 of 2022 Page 1 of 67
ORISSA HIGH COURT : CUTTACK
W.P.(C) No.18144 of 2022
In the matter of an Application under Articles 226 & 227
of the Constitution of India, 1950
***
Nirmal Chandra Rout
Aged about 51 years
Son of Chandra Sekhar Rout
Residing at Barapada, P.O.: Sendtira
P.S.: Bonth, District: Bhadrak … Petitioner
-VERSUS-
1. State of Odisha
Represented through Secretary
Rural Development Department
Government of Odisha
Loka Seva Bhawan, Bhubaneswar
District: Khordha.
2. Executive Engineer
Rural Works Division, Bhadrak
At/P.O.: Bhadrak Town
District: Bhadrak.
3. Superintending Engineer
Rural Works Division
At/P.O.: Bhadrak Town
District: Bhadrak.
4. Assistant Engineer (Estimator)
Rural Works Division
At/P.O.: Bhadrak Town
District: Bhadrak. … Opposite Parties
W.P.(C) No.18144 of 2022 Page 2 of 67
Counsel appeared for the parties:
For the Petitioner : Mr. Surya Prasad Misra,
Senior Advocate
Assisted by
M/s. Asit Kumar Dash,
Abhishek Dash, Ms. Sakshi Rout,
Advocates
For the Opposite Parties : Ms. Aishwarya Dash,
Additional Standing Counsel
P R E S E N T:
HONOURABLE CHIEF JUSTICE
MR. HARISH TANDON
AND
HONOURABLE JUSTICE
MR. MURAHARI SRI RAMAN
Date of Hearing : 26.11.2025 :: Date of Judgment : 04.02.2026
JUDGMENT
MURAHARI SRI RAMAN, J.—
Questioning the legality and tenability of Order dated
09.06.2022 passed by the Superintending Engineer,
Rural Works Division, Bhadrak, opposite party No.3
(Annexure-7) passed in pursuance of decision taken by a
Committee in its meeting held on 09.06.2022 (Annexure-
6) in compliance of Order dated 15.03.2022 passed in
W.P.(C) No.3773 of 2022 of this Court, in rejecting the
claim of the petitioner with respect to price variation/
W.P.(C) No.18144 of 2022 Page 3 of 67
escalation for transportation of minor minerals for use in
the work “Improvement to Road and CD Works under
Pradhan Mantri Gram Sadak Yojana” vide Package
No.OR-04-320(A)/PMGSY-III (Batch-II) (Barapada
Kandava PWD Road to PWD Road Panpadi Chhak via
Bodakpatna, Odanga, Sarmara, Gohira, Jirina in the
district of Bhadrak for the year 2021-22 pertaining to
Agreement No.09/PMGSY-III of 2021-22, dated
01.12.2021, the petitioner approached this Court by way
of filing this writ petition to invoke power of judicial
review under Article 226 of the Constitution of India,
with the following prayer(s):
“It is therefore, humbly prayed that this Hon‟ble Court
may graciously be pleased:
i. To admit the writ petition, issue Rule Nisi;
ii. call upon the opposite parties to show cause as to
why the rejection of petitioner‟s claim vide order
dated 09.06.2022 under Annexure-7 shall not be
set-aside and be directed to pay the escalation
prices incurred by the petitioner.
iii. and if the opposite parties fail to show cause or
show insufficient cause, to make the said Rule
absolute by issuing writ of mandamus directing the
opposite party No.3 to pay the petitioner the
admitted dues towards variation prices incurred for
procurement of minor minerals as this Hon‟ble Court
deems fit and proper;
W.P.(C) No.18144 of 2022 Page 4 of 67
And/or to pass such other order(s), direction(s) as
this Hon‟ble Court deems just, fit, equitable and
proper in the facts and circumstances of the present
case;
And for this act of kindness, the petitioner shall as in
duty bound ever pray.”
Facts:
2. Factual matrix unfurled by the writ petitioner, a works
contractor engaged in the business of execution of works
of civil construction, emanates that in response to the
Notice Inviting Tender dated 06.08.2021 (for short,
“NIT”), submitted his bid for “Improvement to Roads &
CD Works under Pradhan Mantri Gram Sadak Yojana
(PMGSY) of Barapada Kandava PWD Road to PWD Road
Panpadi Chhak via Bodakpatna, Odanga, Sarmara,
Gohira, Jirina” in the district of Bhadrak valued at
Rs.3,81,49,328/-.
2.1. Being declared successful bidder in the competitive
bidding, he was awarded with the work for execution to
be commenced from 01.12.2021 and as per agreement
date of completion was stipulated as 31.10.2022 with
contract price fixed at Rs.3,81,49,328/-, which is 7.77%
less than the corresponding estimated cost of
Rs.3,79,84,665/- besides maintenance cost of
Rs.31,16,071/-.
W.P.(C) No.18144 of 2022 Page 5 of 67
2.2. Consequent upon the said agreement, the petitioner
commenced the work in question as per the
specifications under the Bill of Quantity (“BOQ”, in
short). The agreed cost and/or the bid price, based on
the estimates given by the Rural Works Sub-Division,
included the procurement of minor minerals, such as
moorum, metal, chips and dust (for convenience
collectively be referred to as “minerals” hereinafter) from
Kupari Quarry sourced by the opposite parties. Basing
on the same, the bid price was furnished and the cost
was agreed upon by the petitioner, which is 7.77% less
than the corresponding estimated cost for execution of
said work.
2.3. Kupari Quarry, the sole lead provided by the Rural
Works Sub-Division in its estimates, remained closed for
undertaking mining activities since 21.10.2019 by an
Order of the learned National Green Tribunal, Principal
Bench, New Delhi, which restrained the petitioner from
procuring the above mentioned minerals from said
quarry. Since the petitioner faced much difficulty in
procuring the minerals from the said quarry, he made an
inquiry under the Right to Information Act, 2005 from
the Tahasildar, Khaira in the district of Balasore, which
resulted in supply of information by the Tahasildar,
Khaira that the Kupari Quarry was given on lease for five
years from the year 2017 to 2018, but the same was
W.P.(C) No.18144 of 2022 Page 6 of 67
closed pursuant to the above referred order of the
learned National Green Tribunal. The Superintending
Engineer-opposite party No.3 furnished information to
an application under the Right to Information Act, 2005
that:
“Office of the Superintending Engineer
Rural Works Division, Bhadrak
No.5492/Dated: 24.12.2021
To
Sri Nirmal Chandra Rout,
At: Kuans, Post/District: Bhadrak, PIN: 756100
Sub.: Your RTI application on 29.11.2021
Sir,
With reference to your RTI application dated
29.11.2021, I am to inform you that as per the
estimates under R.W. Sub-Division, Bonth from
21.10.2019 the following quarries lead are given:
1. Moorum : Dhenka/Kupari
2. Metal : Kupari
3. Chips : Kupari
4. Dust : Kupari
Yours faithfully,
Sd/-
Public Information Officer
O/o. the Superintending Engineer
R.W. Division, Bhadrak.”
2.4. Showing concern to complete the work in question
within the time stipulated in terms of the agreement, the
W.P.(C) No.18144 of 2022 Page 7 of 67
petitioner was forced to procure the minerals from
Chandeidhara, which is near about 80 kilometres far off
from the Kupari Quarry.
2.5. The petitioner made a representation dated 11.01.2022
(Annexure-4) before the Superintending Engineer-
opposite party No.3 for revising rates in tune with the
variation clause to provide him with the actual unit cost
of WMM and GSB to make the execution of work
financially feasible and economically viable as he could
not procure the minor minerals necessary for execution
of the work entrusted due to closure of lead mine, viz.,
Kupari Quarry.
2.6. Since the opposite party No.3 has not responded to such
request made by way of above representation, eliciting
inaction, a writ application, bearing W.P.(C) No.3773 of
2022 was filed, which came to be disposed of on
15.03.2022 with the following Order:
“This matter is taken up through hybrid mode.
2. Heard learned counsel for the parties.
3. The petitioner has filed this writ petition seeking
direction to the opposite parties to consider the claim
of the petitioner vide letter dated 11.01.2022
(Annexure-4) in view of the terms of the General
Clauses of Contract and further seeking direction to
the opposite parties to allow the variation prices
W.P.(C) No.18144 of 2022 Page 8 of 67
towards procurement of Minor Minerals for execution
of the works.
4. In course of hearing, learned counsel for the
petitioner states that the petitioner has already
made representation before the opposite party no.3-
Superintendent Engineer, R.W. Division, Bhadrak
Town, Bhadrak vide Annexure-4 series, and the
same may be directed to be disposed of within a
stipulated time.
5. As agreed by learned counsel for the parties, this
Court, without expressing any opinion on the merits
of the case, disposes of the writ petition directing
opposite party No.3 to consider the representation
filed by the petitioner vide Annexure-4 series and
pass appropriate order in accordance with law
within a period of three months from the date of
production of certified copy this order.
Issue urgent certified copy as per rules.”
2.7. The petitioner, thereafter, submitted his grievance
petition before the opposite party No.3 on 08.04.2022. In
response thereto, the opposite party No.3 called a
meeting on 09.06.2022 to discuss the issue pursuant to
the order of this Court dated 15.03.2022. As a fall out of
decision taken in said Meeting, the Superintending
Engineer, Rural Works Division, Bhadrak based on
clarification contained in RD Department Office
Memorandum No.28585300182013, dated 03.03.2017
referring to Clause 13.4 of the Standard Bidding
Document pertaining to Construction and Maintenance
W.P.(C) No.18144 of 2022 Page 9 of 67
of Rural Roads under the Pradhan Mantri Gram Sadak
Yojana/ADB Assisted PMGSY and Clause 7.1 of said
Standard Bidding Document, vide Order dated
09.06.2022 rejected the claim of the petitioner for
invoking escalation clause to revise the rate/price with
respect to minor minerals procured from a place other
than the agreed Kupari Quarry.
2.8. For better comprehension, the Minutes of the Meeting
dated 09.06.2022 is reproduced hereunder:
“Proceedings of the Meeting held in the Chamber of
Superintending Engineer, Rural Works Division, Bhadrak
on dt.09.06.2022 to discuss the issue arising out of
Order passed by Hon‟ble High Court, Odisha
dt.15.03.2022 over W.P.(C) No.3773 of 2022
(Nirmal Chandra Rout Vrs. State of Odisha and others)
and the grievance petition filed by Sri Nirmal Chandra
Rout.
Members Present:
1. Sri Shantanu Kumar Naik, Superintending Engineer,
R.W. Division, Bhadrak.
2. Sri Nadupuri Ravikumar, DAO-II, R.W. Division,
Bhadrak.
3. Smt. Malati Gochhayat, Assistant Engineer
(Estimator), R.W. Division, Bhadrak.
4. Sri Nirmal Chandra Rout, Petitioner.
In obedience to the order of Hon‟ble High Court, Odisha,
Cuttack dt.15.03.2022 arising out of W.P.(C) No.3773 of
2022 (Nirmal Chandra Rout Vrs. State of Odisha and
others) and with reference to the grievance petition
W.P.(C) No.18144 of 2022 Page 10 of 67
dt.08.04.22 of Sri Nirmal Chandra Rout, the petitioner
and the agency for the work “Improvement to Road & CD
works under PMGSY vide Package No.OR-04-320(A)/
PMGSY-III (Barapada-Kandava PWD Road to PWD road
Panpadi Chhak via: Bodakpatna, Odanga, Sarmara,
Gohira, Jirina) in the District of Bhadrak for the year
2021-22. (Agreement No.09/PMGSY-III of 2021-22), the
grievances of Sri Nirmal Chandra Rout was regarding
allow of variation prices for procurement of miner minerals
for execution of above work.
But the RD Department office memorandum
No.28585300182013 dt.03.03.2017, referring clause 13.4
of the Standard Bidding Documents (SBD) of construction
and maintenance of Rural roads under PMGSY/ADB
Assisted PMGSY and clause 7.1 of SBD where it has
clarified that the rates and prices quoted by the bidder
shall be fixed for the duration of contract and shall not be
subject to adjustment and further, the contractor engaged
in execution of PMGSY work both completed and ongoing
work have agreed to the above clause of SBD and entered
into a contract agreement with Government.
In view of the above, the claim of the petitioner and the
agency Sri Nirmal Chandra Rout of the above work for
price variation on minor minerals is not tenable and as
such cannot be entertained. The agency has to execute
the above work on his quoted agreement rates only.
Accordingly the matter is disposed off and all concerned
are to be informed for taking further necessary action.
Sd/-
Superintending Engineer,
R.W. Division, Bhadrak”
W.P.(C) No.18144 of 2022 Page 11 of 67
2.9. Consequent upon such decision, an Order dated
09.06.2022 was passed by the opposite party No.3,
which is reproduced hereunder:
“Office of the Superintending Engineer
Rural Works Division, Bhadrak
No.2099/Dated: 09.06.2022
ORDER
The Hon‟ble High Court, Odisha, Cuttack passed order
No.02 dated 15.03.2022 of W.P.(C) No.3773 of 2022 filed
by Nirmal Chandra Rout Son of Chandra Sekhar Rout, At:
Barapadi P.O.: Sendtira, P.S.: Bonth in the District of
Bhadrak Vrs. State of Odisha & others disposes of the
writ petition directing OP No.3 i.e. Superintending
Engineer, Rural Works Division, Bhadrak to consider the
representation filed by the petitioner i.e. Sri Nirmal
Chandra Rout vide Annexure-4 series and passed
appropriate order in accordance with law within a period
of three months from date of production of certified copy of
this order.
In obedience to the order of Hon‟ble High Court, Odisha,
Cuttack dated 15.03.2022 arising out of WP(C)
No.3773/2022 (Nirmal Chandra Rout vrs. State of Odisha
and others) and with reference to the grievance petition
dt.08.04.22 of Sri Nirmal Chandra Rout, the petitioner
and the agency for the work “Improvement to Road & CD
works under PMGSY vide Package No.OR-04-
320(A)/PMGSY-III (Barapada-Kandava PWD Road to PWD
road Panpadi Chhak via: Bodakpatna, Odanga, Sarmara,
Gohira,Jirina) in the District of Bhadrak for the year 2021-
22. (Agreement No.09/PMGSY-III of 2021-22), the
grievances of Sri Nirmal Chandra Rout was
W.P.(C) No.18144 of 2022 Page 12 of 67
regarding allow of variation prices for procurement
of minor minerals for execution of above work.
But the RD Department Office Memorandum
No.28585300182013 dated 03.03.2017, referring Clause
13.4 of the Standard Bidding Documents (SBD) of
construction and maintenance of Rural roads under
PMGSY/ADB Assisted PMGSY and Clause 7.1 of SBD,
where it has clarified that the rates and prices quoted by
the bidder shall be fixed for the duration of contract and
shall not be subject to adjustment and further, the
contractor engaged in execution of PMGSY work both
completed and ongoing work have agreed to the above
clause of SBD and entered into a contract agreement with
Government.
In view of the above, the claim of the petitioner and the
agency Sri Nirmal Chandra Rout of the above work for
price variation on minor minerals is not tenable and as
such cannot be entertained. The agency has to execute
the above work on his quoted agreement rates only.
Accordingly, the matter is disposed off and all concerned
are to be informed for taking further necessary action.
Encl.: Proceedings of Meeting
Sd/-
Superintending Engineer
R.W. Division, Bhadrak”
2.10. Hence, the present writ petition calls in question the
propriety and legal justification for such rejection of
claim of the petitioner in absence of material to show
that he was at fault in procuring the minerals from the
place other than the lead quarry, i.e., Kupari Quarry.
W.P.(C) No.18144 of 2022 Page 13 of 67
Counter affidavit filed by the opposite parties:
3. The opposite parties while supporting denial by the
opposite party No.3, disputed that having signed the
agreement, thereby accepting the terms and conditions
of the Bid Document (Notice Inviting Tender), the
petitioner cannot maintain the writ petition.
3.1. In Clause-7 of Section:2— Instructions to Bidders of the
NIT, it has been reflected that the employer either
expressly or implicitly makes no representation/
assurance with regard to the accuracy, adequacy,
correctness, reliability and/or completeness of any
assessment, statement or information provided in the
NIT. So, it is the responsibility of the prospective bidder
to examine all required conditions for execution of work
at his own cost before submission of Bid. So, the
petitioner cannot blame the opposite parties with regard
to the closure of Kupari Quarry from which he was to
procure minor minerals.
3.2. It is not unknown that the operation of stone quarry in
Khaira Tahasil was halted by an order of the learned
National Green Tribunal. Hence, before submission of
the Bid, i.e., on 25.08.2021, the operation of Kupari
Stone Quarry was totally stopped. It was for the
petitioner to ascertain the sources of procurement of
materials before submission of the Bid. The claim for
W.P.(C) No.18144 of 2022 Page 14 of 67
variation of price after execution of the agreement in
respect of non-availability of minerals from the lead
quarry, viz. Kupari Quarry, has rightly been rejected.
The opposite party No.3 has rejected the claim of the
petitioner in view of the specific conditions stipulated in
the NIT and made part of the agreement.
3.3. Clause 13.4 under Section 2 of the Instructions to
Bidder appended to NIT stipulated that the “rates and
prices” quoted by the bidder shall be “fixed for the
duration of the contract” and “shall not be subject to
adjustment”. Hence, the opposite party No.3 has not
committed any flaw in rejecting the claim of the
petitioner. The petitioner, being well aware of the above-
noted terms and conditions, submitted his Bid and he,
being the lowest bidder, agreed to execute the work on
the above terms and conditions. So, the petitioner is
estopped to raise the contention with regard to variation
in price.
3.4. The NIT, the foundational document to submit the Bid,
stipulated that all prospective bidders were advised to go
through the detailed terms and conditions envisaged
therein before submission of the bid to participate in the
tender. The petitioner participated in the tender process
by submitting his Bid. Furthermore, the petitioner upon
complying with the formalities executed agreement and
accepted the conditions stipulated. For any change in
W.P.(C) No.18144 of 2022 Page 15 of 67
the site conditions, the opposite parties cannot be held
responsible. After accepting the terms and conditions of
the contract, which is binding upon the petitioner, he
cannot stop the execution of developmental work of the
Government meant for the welfare of the public or claim
immunity from the conditions accepted by him.
3.5. The petitioner has submitted his bid quoting 7.77% less
than the amount put to tender for execution of work.
The preparation of estimate by the opposite parties is the
internal factor of the Department to assess the possible
expenditure required for the execution of work, which
has got no nexus with quotation of price of a prospective
bidder.
3.6. Accepting the terms and conditions provided in the NIT,
the petitioner submitted his Bid to participate in the
tender and also later signed the agreement to execute
the work. Before submission of Bid by the petitioner, the
said Kupari Quarry was closed since 21.10.2019. Hence
it is obvious that the petitioner was aware as regards
detailed condition of work site and source of
procurement of minerals etc. Having quoted price, and
being declared successful, with knowledge of the terms
and conditions he executed the agreement. The
petitioner is, therefore, estopped to turn around to
request the opposite parties to vary with the terms of
agreement.
W.P.(C) No.18144 of 2022 Page 16 of 67
3.7. The petitioner has signed the agreement to complete the
work. The petitioner had executed only 22% of the value
of work put to tender as by January, 2023. This fact
itself is sufficient to entail his claim rejected.
3.8. As per the Tender Document, all prospective bidders
were requested to visit the site and after being satisfied
with regard to all requirements necessary to execute
work, they were required to submit the Bids. Once the
bid is submitted and agreement is drawn to execute the
work, there is little scope to relax any condition.
Nonetheless, to consider his grievance a Committee was
constituted and the Committee unanimously decided
that the price variation claimed by the petitioner is not
tenable and it cannot be entertainable. The Committee
also observed that the petitioner was required to execute
the work on his quoted rate. The opposite party No.3-
Superintending Engineer communicated the decision to
the petitioner vide Order No.2099, dated 09.06.2022. It
is for justified reasons the claim for revision of price in
view of the clear restriction contained in the Standard
Bidding Document has been rejected.
Rejoinder affidavit filed by the petitioner:
4. The petitioner suffered escalation of price as he had to
procure minerals from Chandeidhara, which is
approximately 80 Kms. farther from Kupari Quarry, that
W.P.(C) No.18144 of 2022 Page 17 of 67
was the lead quarry provided by the employer for
procuring such minerals under the BOQ and was the
basis for the assessing the bid price. The closure of the
lead quarry, i.e., Kupari Quarry, by interdiction of the
learned National Green Tribunal, compelled the
petitioner to lift minor minerals from a farther place. By
no reasonable means it could be ascertained before
submitting the bid that such difficulty would arise. The
fact of closure being not disclosed, and the opposite
parties having estimated the tender taking into
consideration distance covered for procuring the minor
minerals from Kupari Quarry, their action in rejecting
the genuine claim for price variation is tainted with
arbitrariness.
4.1. The petitioner has acted upon the information provided
for by opposite party No.3 in the Bid Documents which
provided that the lead quarry would be Kupari Quarry
for procurement of the minerals in question. The
petitioner prepared and furnished his Bid based on the
estimate of the opposite parties which included minor
minerals from Kupari Quarry. Therefore, in view of the
admission in the counter affidavit, the opposite parties
have misrepresented fact and, hence, they cannot
wriggle out of the obligation.
4.2. The denial of variation or escalation in price for
procurement of the minor minerals, i.e., moorum, metal,
W.P.(C) No.18144 of 2022 Page 18 of 67
chips and dust by referring to Clause 13.4 of the
Standard Bidding Document is based on
misconstruction of the document. Clause 13.4 of
Standard Bidding Document speaks of rate of sand
prices quoted by bidder, which shall remain fixed for the
duration of the contract and shall not be subject to
adjustment. The same having consciously excluded
other minor minerals, like moorum, metal, chips and
dust, they could be subject to price variation in terms of
Clause 35 of “Qualification Information” vide Section 3 of
the NIT.
4.3. The price variation was incurred by the petitioner is not
for reasons attributable to him, but is consequent upon
the closure of Kupari Quarry by the Order of learned
National Green Tribunal. The change of event by
operation of law, causing escalation of prices towards
procurement of minor minerals, was beyond the
comprehension of the petitioner and it could not have
been reasonably ascertained, more so when the lead
quarry identified by the opposite parties was Kupari
Quarry. There was no reason to further suspect or cause
verification of the same.
4.4. The petitioner undertook site visit in terms of Clause 7
to assess the possible difficulty, risk and hazard that are
likely to arise in course of work and in order to
familiarise himself with the site. The same cannot be
W.P.(C) No.18144 of 2022 Page 19 of 67
construed to mean that petitioner was duty bound to
even verify the correctness of information presented
under the NIT read with estimates prepared by the
opposite parties. Since the petitioner was required to
procure minor minerals from Kupari Quarry, the bid
price was quoted accordingly. The opposite parties
having misrepresented for their benefit, they cannot shift
the blame upon the petitioner to deny legitimate cost.
Moreover, it is the duty of the employer to propose the
approved quarry lead and provide quarry charts from
which minor minerals are to be lifted for use in road
works so that they can ensure quality of materials used
for such construction of roads. In that event, the
contractor would, however, be responsible for
procurement of materials from authorized sources and
voluntarily disclose the source of procurement for the
purpose of billing as per the provisions of the Odisha
Public Works Department Code.
4.5. On perusal of item (vii) of sub-clause (a) of Clause 3.4.16
of Volume-I read with Para-C under Appendix IV of
Volume-II of the Odisha Public Works Department Code
(abbreviated “OPWD Code”) it evinces that the employer
must propose the approved quarry lead and provide
quarry charts from which minor minerals to be procured
and used in road works. The contractors would,
however, be responsible for procurement of materials
W.P.(C) No.18144 of 2022 Page 20 of 67
from authorized sources in order to maintain the quality
required or desired by the contractee.
4.6. The OPWD Code, Volume-I, under Clause 3.4 dealing
with “Preparation of Estimates” provides for “Different
Estimates” in sub-clauses 3.4.1 to 3.4.38. Sub-clauses
so far as relevant for the present purpose stand as
follows:
“B. Roads.—
3.4.15. It may be regarded as a fundamental rule that
no road, bridge, ferry, tunnel, ropeway or
causeway in charge of the Public Works
Department should be abandoned or allowed
to fall out of repairs without the prior sanction
of the Government.
3.4.16. (a) Before the estimate for road project is
prepared, preliminary investigation is to
be carried out where necessary. Projects
for roads when submitted for sanction
should be accompanied by the following
documents:
(i) Report detailing history, design, scope,
rates, specifications, volume of traffic,
nature of soil references, cost and mode
of execution etc.
(ii) Detailed measurements and abstract of
cost.
(iii) Index map, scale 1:50,000.
W.P.(C) No.18144 of 2022 Page 21 of 67
(iv) Plans, scale 1:5,000. Longitudinal and
crosses or transverse sections, scale
horizontal 1:1,000 to 1:100 and vertical
1:100 to 1:10 as applicable.
(v) Detailed drawings of all engineering
works such as bridges etc. scale 1:100 or
1:50 for plan and estimates.
(vi) Detailed drawings, as per scale given in
(v) above of structures, dwellings or
inspection bungalows, and quarters for
subordinates and gangs.
(vii) For the purpose of estimate, the approved
quarry lead is to be provided judiciously.
Engineers-in-Charge would be responsible
for ensuring the quality of the materials
supplied. The contractors would however,
be responsible for procurement of
materials from authorized sources and
voluntarily disclose the source of
procurement for the purpose of billing.
Besides, the bidder would be required to
submit the details of quarry for procurement
while submitting the bids.
Note: (a) The scale noted above may be reduced or
increased according to the nature of the
project.
(b) Estimates for new lines of road should
include the cost of all dwelling and
inspection houses intended to be built
along with it for accommodation of sub-
ordinates and others.
W.P.(C) No.18144 of 2022 Page 22 of 67
(c) Necessary provision should also be made
for shifting of pipe lines, drainage works,
electrical poles, cables and telephone
lines, if any, coming in the way of new
alignment.”
4.7. Relevant portion of Volume-II of the OPWD Code is
extracted hereunder:
“Appendix-IV
Guide lines for preparation of estimates
for different types of works
C. Roads.—
(a) The projects for roads when submitted for sanction
should be accompanied by the following documents:
(i) Report detailing history designs, scope, rates,
specifications, preferences, cost and mode of
executions, etc.
(ii) Detailed measurements and abstract of cost.
(iii) Index map, scale 1-50 M.
(iv) Plans, scale 1.5 m Longitudinal and cross or
transverse sections, scale horizontal 11M and
vertical 1.100M.
(v) Detailed drawings of all engineering works
such as bridges, etc. scale 1.100 or 1.50 for
plan and estimate.
(vi) Detailed drawings, as per scale given in (v)
above of structures, dwelling or inspection
bungalows, and quarters for subordinate and
gangs.
W.P.(C) No.18144 of 2022 Page 23 of 67
(vii) Quarry charts showing the various, quantities
from where road metal is proposed to be
obtained.
(b) Estimates for bridges, in addition, to the reports and
plans, as above, should be accompanied by water
way calculations and sections of trial pits and
foreign of the stream bed.
Note: The scale noted above may be reduced or
increased according to the nature of the project:
(i) Necessary provision should be made for
shifting of pipe lines, drainage, electrical Poles,
cables and telephone lines if any, coming in the
way of new alignment.
(ii) Before detailed estimates; for bridges are made
as many, trial pits or borings as are considered
necessary should be taken. It is necessary to
make a careful preliminary investigation of the
subsoil in order to ascertain exact nature of the
strata and determine accurately the stability of
sites for bridgest, large buildings etc., and the
depths, to which foundations should be taken.
(c) Estimates for bridges must be accompanied by
adequate calculations and the report should
show how the stream has been crossed
hitherto, why it is proposed to bridge it, the
kind and volume of traffic expected, whether
the stream has ever been bridged before, if so,
a description of which should be given and if it
failed the reasons the kind of bridge now
proposed, the reasons for the amount of water
way allowed the height of road, way allowed
for boats, if any the nature and size of stages,
W.P.(C) No.18144 of 2022 Page 24 of 67
if any, the drainage of the stream whether flat
or hilly, the velocity of current in rainy and dry
whether, liability to sudden floods, whether the
stream is used for flatting out timber and if so,
how the nature of bed and bank whether the
banks are liable to erosion whether the stream
is navigated and if so, by what types of vessel,
the highest flood level, maximum and normal,
and the nature of materials available within a
reasonable distance.
(d) Whenever it is proposed to construct or modify a
bridge, culvert, dam, diversion on other work which
might effect any railway line in the vicinity, the
Railway Administration should be consulted in
regard to the adequacy of the water ways etc.
provided in the proposals, where there is
disagreement, the matter should be referred to the
S.E. concerned.
(e) In addition to the actual bridge plans, the following
plans should accompany an estimate for a new
bridge:
A plan of the stream of 1.5 Km. above and below the
proposed crossing, with connected cross section, in
every quarter of a Kilometre (or oftener, if necessary)
a cross section of the stream at the proposed bridge
site showing the general level of, the country on
either bank as well as that of road approaches, the
various Water levels, depth at which good
foundation is available and its nature.
(i) The code of practice prescribed by the Indian
Roads Congress should be followed in general.”
W.P.(C) No.18144 of 2022 Page 25 of 67
4.8. The denial of variation or escalation in prices for the
minor minerals being procured from a farther source is
not only irrational but also sounds illogical. The opposite
parties fell in error in applying the true purport of
Clause 13.4 of NIT. Such clause is not applicable to the
present minerals as the clause imposes a fixed rate on
„sand‟ only. Clause 13.4 of NIT speaks of rate of sand
prices quoted by bidder which would remain fixed for the
duration of the contract, and the same is not to be
subject to adjustment. The same having consciously
excluded other minor minerals, like moorum, metal,
chips and dust, the decision of the opposite party No.3 is
bad and illegal. Thus the minor minerals being procured
from Chandeidhara, but not the lead source at Kupari
Quarry, due to exigencies, the price variation ought to
have been allowed in terms of Clause 35 of Section 3 of
the NIT.
4.9. It is evident from letter dated 24.12.2021 that the
proposed lead for procurement of minor minerals
excluding “sand” was Kupari Q uarry. In order to
participate in the tender process, the petitioner had no
other alternative but to accept and act according to the
said information. The obligation to visit site was to
assess the challenges at the site and not to assess the
status of the Kupari Quarry. The opposite parties now
W.P.(C) No.18144 of 2022 Page 26 of 67
cannot take benefit of their own wrong to deprive the
petitioner of his legitimate dues.
Hearing:
5. As the pleadings are completed, the matter is taken up
for final hearing on the consent of the counsel for the
respective parties.
5.1. Heard Mr. Surya Prasad Misra, learned Senior Advocate
being assisted by Mr. Asit Kumar Dash, Advocate along
with Ms. Sakshi Rout, proxy counsel for the petitioner
and Ms. Aishwarya Dash, learned Additional Standing
Counsel for the opposite parties.
5.2. Hearing being concluded, the matter was reserved for
preparation and pronouncement of Judgment.
Discussions and analysis:
6. The undisputed factual matrix as adumbrated in the
writ petition reveals:
i. With the last date for receiving Bid Documents on
25.08.2021 up to 5.00 p.m., e-procurement notice
was floated by the Additional Chief Engineer, Rural
Works Circle, Balasore specifying the work
described above under the Pradhan Mantri Gram
Sadak Yojana (PMGSY).
W.P.(C) No.18144 of 2022 Page 27 of 67
ii. Though by virtue of an order of the learned
National Green Tribunal, the quarry operations
were directed to be stopped at Kupari Quarry, the
petitioner was not made aware by the opposite
parties about such interdiction, but it was required
to procure moorum, metal, chips and dust from said
Quarry, which fact is evident from Letter dated
24.12.2021 of the Public Information Officer,
Superintending Engineer, Rural Works Division,
Bhadrak.
iii. The petitioner, lowest bidder, executed agreement
for execution of work advertised. Conditions
stipulated in NIT formed part of such agreement.
iv. The petitioner claimed for variation of price
inasmuch as it had to lift the minor minerals for
use in the work from a distant place instead of
Kupari. Such claim being refused, the writ petition
is filed.
7. It is submitted by Sri Surya Prasad Mishra, learned
Senior Advocate that the petitioner had to procure the
minerals approximately 80 kilometres far from Kupari
Quarry. Since the stoppage of quarrying operation at
Kupari was not within his knowledge and the opposite
parties disclosed the source for procurement of minor
minerals from Kupari as the lead quarry, the opposite
W.P.(C) No.18144 of 2022 Page 28 of 67
parties through learned Additional Standing Counsel
cannot take shelter of the contents available in the
downloaded copy of the Standard Bid Documents.
7.1. Sri Surya Prasad Mishra, learned Senior Advocate with
his usual vehemence canvassed that the denial of
escalation (variation) in prices for procurement of the
minerals referring to Clause 13.4 of NIT is inappropriate,
outcome of misreading and without proper appreciation
of terms of such document.
7.2. He would arduously submit that since the minerals in
question were “moorum, metal, chips and dust ” in
respect of which price variation is sought for, there is no
inhibition to claim with respect to such minerals in
terms of Clause 13.4 as the restriction contained therein
is applicable only with respect to “sand”. To bolster his
contention, Sri Surya Prasad Mishra, learned Senior
Advocate drew support from Clause 13 and Clause 17
finding place under the heading “Bid Prices” vide Section
2: Instructions to Bidders, which are reproduced
hereunder:
“13. Bid Prices.—
13.1 The Contract shall be for the whole Works, as
described in Clause 1.1 of ITB (Instructions to
Bidders), based on the priced Bill of Quantities
submitted by the Bidder online.
W.P.(C) No.18144 of 2022 Page 29 of 67
13.2 The Bidder shall make online entries to fill the
Percentage Rate or Item Rates in Bill of Quantities as
specified in the Appendix to ITB; only the same
option is allowed to all the Bidders. The Bidder is
not required to quote his rate for Routine
Maintenance. The rates to be paid for routine
maintenance by the Employer are indicated in the
Bill of Quantities.
Percentage Rate Method requires the bidder to quote
a percentage above/below/at par of the schedule of
rates specified in the Appendix to ITB.
Item Rate Method requires the bidder to quote
rates and prices for all items of the Works
described in the Bill of Quantities. The items
for which no rate or price is entered by the
Bidder will not be paid for by the Employer
when executed and shall be deemed covered by
the other rate sand prices in the Bill of
Quantities.
Upon numerical entry, the amount in words would
automatically appear and upon entry of rates in
items of work, or upon entering percentage rate, total
bid price would automatically be calculated by the
system and would be displayed.
13.3 While quoting rates, the GST component shall not be
added in rates, which all other duties, taxes,
royalties and other levies payable by the Contractor
under the Contract, or for any other cause, shall be
included in the rates, prices, and total bid price
submitted by the Bidder.
W.P.(C) No.18144 of 2022 Page 30 of 67
13.4 The rate sand prices quoted by the Bidder shall
be fixed for the duration of the Contract and
shall not be subject to adjustment.
***
17. Alternative Proposals by Bidders. —
17.1 Bidders shall submit offers that comply with
the requirements of the bidding documents,
including the Bill of Quantities and the basic
technical design as indicated in the drawings
and specifications. Alternative proposals
will be rejected as non-responsive.”
7.3. To counter such submission, Ms. Aishwarya Dash,
learned Additional Standing Counsel strenuously argued
that there was typographical error crept in the NIT and
referred to a downloaded copy of Standard Bidding
Document. Valiant attempt was made by her to urge
that the contention of learned Senior Counsel is
fallacious inasmuch as the expression “The rate sand
prices quoted by the Bidder shall be fixed for the duration
of the Contract and shall not be subject to adjustment” as
finds place in the NIT is to be read as, “The rates and
prices quoted by the Bidder shall be fixed for the duration
of the Contract and shall not be subject to adjustment”.
Strong objection has been raised by Ms. Aishwarya
Dash, learned Additional Standing Counsel that the
minerals in question are covered under the said clause,
but it is fallacious to say that said clause takes within
W.P.(C) No.18144 of 2022 Page 31 of 67
its sweep only “sand”. Hence, no infirmity can be
imputed to the decision taken by the Committee in
rejecting the claim of the petitioner.
7.4. Per contra, it is submitted by the learned Senior Counsel
that had it been an innocuous error, such fact could
have been brought on record by way of counter affidavit.
Such conscious error, if at all, is reflected at more than
one place. Nothing in this regard has been spelt out by
the opposite parties neither in the counter affidavit nor
was any response has been put forth in this regard as
agitated in the rejoinder affidavit. Therefore, such a
stance of the opposite parties does not warrant
consideration in absence of pleading.
7.5. It is also pointed out by the learned Senior Counsel that
no corrigendum or amendment to the NIT is brought
forward by the opposite parties; nevertheless, the
opposite parties have affirmed that the terms and
conditions do form part of the agreement entered into
between the Superintending Engineer and the petitioner.
To demolish such firm stance taken by the learned
Additional Standing Counsel without bringing on record
any corroborative evidence by way of affidavit to
contradict such clause as it appeared in the NIT forming
part of the agreement, it is submitted that it was well
within the knowledge of the opposite parties that Kupari
Quarry was not in operation, yet the estimate was made
W.P.(C) No.18144 of 2022 Page 32 of 67
taking into consideration the royalty of moorum, metal,
chips and dust by adding carriage to the cost. The NIT
disclosed as “rate sand price” in Clause 13.2 and Clause
13.4 of the Instructions to Bidders. Sri Surya Prasad
Mishra, learned Senior Advocate referred to copy of the
document titled “ODISHA STATE RURAL ROADS AGENCY,
STANDARD BIDDING DOCUMENT FOR PRADHAN MANTRI GRAM
SADAK YOJANA (PMGSY) FOR CONSTRUCTION AND
MAINTENANCE: YEAR 2021-22: PMGSY-III, BATCH-II,
DISTRICT: BHADRAK, OFFICE OF THE ADDITIONAL CHIEF
ENGINEER, RURAL WORKS CIRCLE, BALASORE: OR-04-320(A)”
authenticated by the Superintending Engineer, Rural
Works Division, Bhadrak on 01.12.2021 (Annexure-8)
enclosed with Affidavit dated 18.08.2023 filed on the
direction of this Court. The copy of “Agreement” entered
into between the Superintending Engineer, Rural Works
Division, Bhadrak and the petitioner on 01.12.2021
depicts as follows:
“The following documents shall be deemed to form and be
read and construed as part of this Agreement:
i. Letter of Acceptance;
ii. Notice to proceed with works;
iii. Contractor‟s Bid;
iv. Contractors Data;
W.P.(C) No.18144 of 2022 Page 33 of 67
v. Special Condition of Contract and General
Conditions of Contract;
vi. Specifications;
vii. Drawings;
viii. Bill of Quantities; and
ix. Any other document listed in the contract data as
forming part of the contract.”
7.6. From the above, having found force in the submission of
the learned Senior Counsel, the contents of format of
“Standard Bidding Document”, which is stemmed upon
by the learned Additional Standing Counsel to buttress
her argument, cannot be taken into consideration. The
specific document, i.e., NIT (Annexure-8) having formed
part of the agreement, reveals “rate sand prices”, not
“rates and prices” in Clauses 13.2 and 13.4 of Section 2:
Instructions to Bidders. This document is related to the
present tender (NIT), which forms part of and appended
to the document titled “GOVERNMENT OF ODISHA: RURAL
DEVELOPMENT DEPARTMENT: NAME OF THE WORK:
IMPROVEMENT TO ROADS AND CD WORKS UNDER PRADHAN
MANTRI GRAM SADAK YOJANA (PMGSY) IN THE DISTRICT OF
BHADRAK: PACKAGE NO.OR-04-320(A)/PMGSY-III (B-II)
(BARAPADA-KANDAVA PWD ROAD TO PWD ROAD PANPADI
CHHAK VIA: BODAKPATNA, ODANGA, SARMARA, GOHIRA,
JIRINA”. The Agreement dated 01.12.2021 entered into
between parties binds inter se and it indicated that the
W.P.(C) No.18144 of 2022 Page 34 of 67
petitioner was to execute the said work. This document
being relevant and related to the instant contract work
as awarded to the petitioner, this Court on scrutiny finds
that Clause 13.4 under the Heading “Bid Prices”
reflected in Section 2: “Instructions to Bidders”
contained “The rate sand prices quoted by the Bidder
shall be fixed for the duration of the Contract and shall
not be subject to adjustment”. Since this is specific to the
award of contract in question and the agreement was
entered into between the Superintending Engineer,
Rural Works Division and the petitioner with eyes open,
it is crystal clear that the opposite parties confined such
clause to “sand” only, but not to any other minerals.
Since there is no mention about exclusion of other
minerals, viz., moorum, metal, chips and dust, the
escalation/price variation could not have been denied.
Glance at 13.2 of said section removes doubt and
clarifies that the opposite parties have restricted Clause
13: Bid Prices to “sand” only.
7.7. In order to comprehend the distinctive feature contained
between the terms of the NIT vis-a-vis the downloaded
copy of Standard Bidding Document, which was referred
to by the learned Additional Standing Counsel, the
principles of construction of documents binding inter se
parties, it may be apposite to have reference to Concise
Law Dictionary, by P.G. Osborn, published by Sweet and
W.P.(C) No.18144 of 2022 Page 35 of 67
Maxwell, 1927, which describes the word “deed” as “a
writing or instrument written on paper or parchment,
sealed and delivered, to prove and testify the agreement
of the parties whose deed it is, to the things contained in
the deed”; “A deed generally consists of the following
parts— the premises, the habendum, the tenendum, the
reddendum, the conditions, and the covenants”.
7.8. To interpret a document to understand the legal sanctity
thereof it is not inept to have regard to the following
observations made by the Hon‟ble Supreme Court of
India in Mahakali Sujatha Vrs. The Branch Manager,
Future Generali India Life Insurance Company Limited,
(2024) 4 SCR 724:
“46.2.In DDA Vrs. Durga Chand Kaushish, AIR 1973 SC
2609, it was observed:
„In construing document one must have regard,
not to the presumed intention of the parties,
but to the meaning of the words they have
used. If two interpretations of the document
are possible, the one which would give effect
and meaning to all its parts should be adopted
and for the purpose, the words creating
uncertainty in the document can be ignored .‟
46.3. Further, in Central Bank of India Ltd. Vrs. Hartford
Fire Insurance Co. Ltd., AIR 1965 SC 1288, it was
held:
„11. *** what is called the contra proferentem
rule should be applied and as the policy
W.P.(C) No.18144 of 2022 Page 36 of 67
was in a standard form contract prepared
by the insurer alone, it should be
interpreted in a way that would be
favourable to the assured.‟
46.4. In Sahebzada Mohammad Kamgarh Shah Vrs.
Jagdish Chandra Deo Dhabal Deb, AIR 1960 SC
953, it was observed that where there is an
ambiguity it is the duty of the court to look at all the
parts of the document to ascertain what was really
intended by the parties. But even here the rule
has to be borne in mind that the document
being the grantor’s document it has to be
interpreted strictly against him and in favour
of the grantee.”
7.9. There is no cavil for the proposition that every word of
the tender document should be given its meaning and
the entire tender document has to be read together so
that no condition stipulated therein is rendered otiose.
The sanctity of the conditions in the NIT must be
maintained and the negligent approach on the part of
the opposite parties cannot take away the legitimate
claim made by the petitioner. An agreement executed for
the particular work prevails over the specifications and
as the petitioner-contractor had executed the work in
accordance with the instructions of the Superintending
Engineer, who floated the tender, the opposite parties
cannot escape the non-disclosure of factum of non-
operation of Kupari Quarry and shun liability on the
ground that the price quoted while taking part in the
W.P.(C) No.18144 of 2022 Page 37 of 67
bidding process is sacrosanct and under no
circumstance can it be varied. To fortify such
observation, reference may be had to Municipal
Committee Vrs. Beli Ram & Co., AIR 1933 Lah 1011 =
1933 SCC OnLine Lah 361, wherein it was held that:
“5. Mr. Badri Das for the defendant Committee relied on
para. 38 of the printed specifications (Ex. P.W. 13-
20) and argued that as the change from uncoursed
to coursed masonry was admittedly more than
Rs.1,000 in value and the sanction in writing of the
President had not been obtained, the Committee was
not liable to pay for it, even though the work had
been executed under the express orders of the
Engineer-in-Charge. In my opinion this argument is
without force and I have no hesitation in overruling
it. As stated already, the conditions of the contract
between the parties were embodied in the deed, Ex.
P.W. 13-19, and their respective rights and
obligations were to be regulated by its terms. The
book of specifications, issued by the Committee a
year and a half earlier, merely contained an offer of
the conditions on which the Committee intended at
that time to have the work done. These “conditions”
were modified in several important particulars in the
course of the negotiations, and the terms ultimately
agreed upon between the Committee and the
contractors were entered in the written contract, Ex.
P.W. 13-19. There can therefore be no manner of
doubt that if on any point there is a conflict
between Ex. P.W. 13-20 and Ex. P.W. 13-19, the
latter must prevail. A comparison of the terms of
the two documents makes it abundantly clear that
Ex. P.W. 13-19 superseded para. 38 of the printed
W.P.(C) No.18144 of 2022 Page 38 of 67
book of specifications; and the Engineer-in-Charge
was invested with very wide powers in connection
with the construction of these buildings, and the
contractors were required to execute the work in
strict accordance with his directions. The class of
masonry in which the walls of the tanks were to be
constructed was clearly a matter on which the
contractors were bound to follow the instructions
given by him. It is not contended that the plaintiffs
disobeyed these instructions. Indeed, the very basis
of their claim is that they had executed the work in
strict accordance with the orders issued by Mr.
Henderson. The class of masonry in which the walls
were to be built is not a matter to which para. 12 of
Ex. P.W. 13-19 applied and I have no doubt that the
Committee cannot escape liability on the highly
technical ground urged by Mr. Badri Das.”
7.10. It is not out of place to have well-established principle to
be borne in mind that the Court must, as far as possible,
avoid a construction which would render the words used
by the author of the document meaningless and futile or
reduce to silence any part of the document and make it
altogether inapplicable.
7.11. With such interpretative tools at hand, when the clauses
in NIT is perceived, a plausible and reasonable inference
can be drawn to support the argument canvassed by Sri
Surya Prasad Mishra, learned Senior Advocate that
Kupari Mines, a stone quarry, being the authorised
source to lead moorum, metal, chips and dust (minor
minerals), which was restrained from carrying out any
W.P.(C) No.18144 of 2022 Page 39 of 67
mining activities by dint of order of the learned National
Green Tribunal, obviously the price variation clause
would not apply to these minerals. Therefore, the
exclusion of “sand” can be perceived from Clauses 13.2
and 13.4 under the Head— Bid Prices.
7.12. Minute excursion into the NIT would not leave any
manner of ambiguity if reference is made to “Explanatory
Note” appended to the NIT. Said note contains the
following:
“Format of the Bidding Document
The standard Bidding Document for Pradhan Mantri Gram
Sadak Yojana (PMGSY) follows the format of the MoRTH
Bidding Document, which is similar to the format for
National Competitive Bidding for Works (India Version)—
as approved by the Ministry of Finance for World Bank
aided projects.
The document has the added feature of maintenance of
roads for five years by the contractor who constructs the
road.”
7.13. The words “similar to” appearing in said Explanatory
Note clinch the present issue that there could be
variation in clauses from the terms stipulated in the
Standard Bidding Document to suit specific contract
works to be executed. The use of the word “similar” in
commercial parlance qua commodities can be noticed
from the following interpretation set forth by the Hon‟ble
Supreme Court of India in the case of Union Carbide
W.P.(C) No.18144 of 2022 Page 40 of 67
India Ltd. Vrs. State of Andhra Pradesh, (1995) 2 SCR
785:
“The meaning of the significant words and description of
the wood products as intermediate materials meant for
manufacture of final products clearly indicate that
„laminated wood‟ means a wood product prepared by
placing layer on layer and „block board‟ is a plywood
board with a core of wood. Any plywood board with a
core of wood in which there are layers, one above the
other is, therefore, laminated wood similar to plywood
or, veneered panels. It is „similar laminated wood‟
included in the heading „Plywood, veneered panels and
similar laminated wood‟. Similarity with, and not
identity with plywood or veneered panels is
required. In Nat Steel Equipment Private Ltd. Vrs.
Collector of Central Excise, (1988) 34 ELT 8 (SC) = (1988)
2 SCR 732, while considering the meaning of the word
„similar‟ in a tariff item, in similar context, it was stated
thus:
„*** The expression „similar‟ is a significant expression. It
does not mean identical but it means corresponding to·or
resembling to in many respects; somewhat like; or haivng
a general likeness. The statute does not contemplate that
goods classed under the words of „similar description‟
shall be in all respects the same. If it did these words
would be unnecessary. These were intended to embrace
goods but not identical with those goods. ***‟
This test is satisfied. Thus, the meaning given to the
expression „similar laminated wood‟ in the HSN is not any
special meaning thereof but the general meaning as
understood internationally in the field of „Forestry and
Wood Production‟.”
W.P.(C) No.18144 of 2022 Page 41 of 67
7.14. Such being the connotation of the term “similar”, said
word in Explanatory Note appended to the NIT makes it
unambiguous that the words and the terms of Bid
Document (NIT) in question can be „similar‟ though not
worded with exactitude. The words “rate sand price” in
subject Bid Document being found at variance with
“rates and price” in Clause 13.4 of the Standard Bidding
Document, the former would prevail. It is obvious
because Kupari Quarry, the lead mine for the petitioner
to procure above minor minerals is a stone quarry, but
not sand source. It is well within knowledge of the
opposite parties in the year 2021 when the tender was
floated that the operational activities in said quarry was
restricted by the learned National Green Tribunal.
Therefore, this Court is of the strong belief and finds
force in the submission of the learned Senior Counsel
that the clauses particularly Clause 13.2 and Clause
13.4 under the “Price Bid” reflected correct position “rate
sand prices” and not “rates and prices”. Absence of
pleading in opposition in this respect by the opposite
parties strengthens the case of the petitioner.
7.15. To appreciate the stand taken in the counter affidavit by
the opposite parties, having perused paragraph 4 it
transpired that “the opposite party No.3 has rejected the
claim of the petitioner in view of this specific conditions
stipulated in the DTCN and latter made part of the
W.P.(C) No.18144 of 2022 Page 42 of 67
agreement” and “further Clause 13.4 under Section 2,
Instructions to Bidders of the Agreement clearly stipulates
that the rates and prices quoted by the bidder shall be
fixed for the duration of the contract and shall not be
subject to adjustment”. A clear and untrammelled stance
is taken at paragraph 6 of the counter affidavit with
respect to adherence to the conditions stipulated in NIT
forming part of the agreement, which demonstrates as
follows:
“*** The petitioner is well educated and an experienced
contractor and well versed with regard to tenns and
conditions stipulated in the Detailed Tender Call Notice
(DTCN) and has participated in the Tender process by
submitting his bid. Further, when petitioner was
instructed by work order to execute Agreement by
complying with the official formalities has agreed
and accepted the above conditions stipulated above
and signed the Agreement to execute the work. For
any change in the site conditions, the opposite
parties cannot be made responsible because of the
above noted conditions germinated into the
contractor and were accepted by the petitioner by
putting his signature in the Agreement. After
accepting the terms and conditions of the contract which
is binding upon the petitioner, the petitioner cannot stop
the execution of developmental work of the Govt, meant
for the welfare of public or claim immunity from the
conditions accepted by the petitioner.”
7.16. It is misnomer to say that there was any change in the
site condition. Rather the disclosed source being not in
W.P.(C) No.18144 of 2022 Page 43 of 67
operation, carriage cost was demanded by the petitioner
for leading the minor minerals from Chandeidhara,
which is farther place than Kupari Quarry. Such being
the fact-situaition, the document (downloaded) relied on
by the learned Additional Standing Counsel, being not
forming part of the counter affidavit nor is it made part
of record, cannot have any bearing to dispel the
contention of the petitioner.
7.17. Clause 13.4 of Section 2, Instructions to Bidders of NIT,
reveals that the word contained therein is “rate sand”,
not “rates and”. Hence, bare reading of contents of
Clause 13.4 of NIT makes it abundantly clear that it is
the rate of sand prices quoted by bidder which shall
remain fixed during the period of contract. In other
words, for the minor minerals other than “sand” such
restrictive reading of the clause is inapposite. This
having consciously been excluded other minor minerals
like moorum, metal, chips and dust, as procured by the
petitioner is subject to price variation clause laid in
Clause 35 of Section 4 of the NIT dealing with General
Conditions of Contract.
7.18. At this juncture reference to Clause 35 of Section 4 of
the NIT dealing with “Conditions of Contract” may be
relevant which is quoted hereunder:
“D. Cost Control
Bill of Quantities
W.P.(C) No.18144 of 2022 Page 44 of 67
35. The Engineer shall, having regard to the scope of the
works and the sanctioned estimated cost, have power
to order, in writing, variations within the scope of the
works, he considers necessary during the progress of
the works. Such variation shall form part of the
contract and the contractor shall carry them out and
include them in updated programme produced by the
contractor. Oral orders of the Engineer for variations,
unless followed by written confirmation, shall not be
taken into account.”
7.19. Perusal of decision taken in the Meeting of the
Committee held on 09.06.2022 (Annexure-6) and the
Order dated 09.06.2022 does not transpire that the
terms of Clause 35 was taken into consideration.
However, it is ex facie on record vide Annexure-3, i.e.,
Letter dated 24.12.2021 wherein the Superintending
Engineer, Rural Works Division, Bhadrak asserted that
moorum, metal, chips and dust were to be led from
Kupari Quarry, despite he was conscious about the fact
that the quarry operations in Kupari Quarry was not
permitted. In this connection Ms. Aishwarya Dash,
learned Additional Standing Counsel made a statement
that in terms of Clause 7 of Section 2 (Instructions to
Bidders) of the NIT
1, the petitioner having visited site
1
Clause 7 of Instructions to Bidders of the “Notice Inviting Tenders for Pradhan
Mantri Gram Sadak Yojana Works in Odisha: National Competitive Bidding
through e-Procurement: Bid Identification No.SE-BLS-NCB-297, Ref. No. 2709,
dated 06.08.2021” is reproduced hereunder:
“7. Site Visit.—
7.1 The Bidder, at his own cost, responsibility and risk, is encouraged
to visit, examine and familiarise himself with the Site of Works .
The Bidder acknowledges that prior to the submission of the bid, the
W.P.(C) No.18144 of 2022 Page 45 of 67
before taking part in the bidding process, it is presumed
that he would not be able to “lift and lead” the minor
minerals from said Quarry. Nevertheless, such stand of
the opposite parties cannot have any assistance to
countenance the argument of learned Additional
Standing Counsel inasmuch as the clause showing “Site
Visit” at pre-bid stage is only to assess the location and
feasibility for commencement and conclusion of the work
at the site. Indubitably it is admitted by the opposite
parties vide Letter No.5492, dated 24.12.2021 issued
from the Office of Superintending Engineer, Rural Works
Division, Bhadrak (Annexure-3) that the estimates of the
works were made on the basis of lead given from Kupari
Quarry with respect to minerals namely moorum, metal,
chips and dust. Though it was within the knowledge of
the opposite parties on the date of issue of “Notice
Inviting Tenders for Pradhan Mantri Gram Sadak Yojana
Works in Odisha: National Competitive Bidding through
e-Procurement: Bid Identification No.SE-BLS-NCB-297,
Ref. No.2709, dated 06.08.2021” that the operations at
Bidder/Contractor has, after a complete and careful examination, made
an independent evaluation of the Scope of the Project, Specifications and
Standards of design, construction and maintenance, Site, local conditions,
physical qualities of ground, subsoil and geology, suitability and
availability of access routes to the Site and all information provided by the
Employer or obtained, procured or gathered otherwise, and has
determined to its satisfaction the accuracy or otherwise thereof and the
nature and extent of difficulties, risks and hazards as are likely to arise or
may be faced by it in the course of performance of its obligations
hereunder. The Employer makes no representation whatsoever, express,
implicit or otherwise, regarding the accuracy, adequacy, correctness,
reliability and/or completeness of any assessment, assumptions,
statement or information provided by it and the Bidder confirms that it
shall have no claim whatsoever against the Employer in this regard.”
W.P.(C) No.18144 of 2022 Page 46 of 67
Kupari Quarry was stopped by virtue of Order of the
learned National Green Tribunal, they could not have
misguided the participants including the petitioner. As
on the date preparing the estimates by the opposite
parties Kupari Quarry was made non-functional/non-
operational since 21.10.2019, there was no necessity for
inclusion of royalty and carriage of above mentioned
minor minerals from Kupari Quarry. This Court,
therefore, repels the contention of Ms. Aishwarya Dash,
learned Additional Standing Counsel that in view of
Clause 7 afore-referred, it is the petitioner who was
required to verify the correctness of information
contained in the said Bid Document.
7.20. This Court, thus, finds force in the contention of the
learned Senior Counsel that since no plea is taken by
the opposite parties in the counter affidavit to the effect
that the words “rate sand price” would have to be read
as “rates and prices”, the decision of the Committee in
its Meeting dated 09.06.2022 in pursuance of direction
of this Court vide Order dated 15.03.2022 passed in
W.P.(C) No.3773 of 2022 and consequent Order dated
09.06.2022 of the Superintending Engineer cannot be
upheld. On a misreading of terms of NIT, the Order
dated 09.06.2022 rejecting the claim of the petitioner for
price variation (escalation) on the specious plea that in
respect of works in question “price variation on minor
W.P.(C) No.18144 of 2022 Page 47 of 67
minerals is not tenable and as such cannot be
entertained” and “the agency has to execute the above
work on his quoted agreement rates only” has come to
be passed. Therefore, the decision and the order
(Annexures-6 and 7) cannot withstand judicial scrutiny.
8. Another aspect which is highlighted by the learned
Senior Counsel is this that there was no absolute
prohibition on the part of the opposite parties to
consider variation
2 in prices within the scope of work in
view of Clause 35 and Clause 36 of Section 4 of Part-I of
General Conditions of Contract appended to the NIT read
with Clause 3.4 of Volume-I and Paragraph C under
Appendix-IV of Volume-II of the OPWD Code.
8.1. Clause 35 and Clause 36 of Section 4 of Part-I of
General Conditions of Contract appended to the NIT are
reproduced hereunder:
“35. Variations.—
35.1. The Engineer shall, having regard to the scope of the
works and the sanctioned estimated cost, have
power to order, in writing, variations within the
scope of the works, he considers necessary during
the progress of the works. Such variations shall form
part of the contract and the contractor shall carry
them out and include them in updated Programme
2
The word “Variation” is found mentioned in the NIT as follows:
“Section-I
Part-I : General Conditions of Contract
***
A variation is an instruction given by the Engineer, which varies the works.”
W.P.(C) No.18144 of 2022 Page 48 of 67
produced by the contractor. Oral orders of the
Engineer for variations, unless followed by written
confirmation, shall not be taken into account.
36. Payments for variations.—
36.1 If the quantity of work for any BOQ item is varied, it
will not constitute a variation for the purpose of
payment to the contractor, at a rate other than the
one mentioned in the Agreement.
36.2 If the items for variation are not specified in the Bill
of Quantities, the Engineer shall derive the rate for
such variation item from similar items in the Bill of
Quantities.
36.3 If the rate for variation item cannot be determined in
the manner specified in Clause 36.2, the Contractor
shall, within 14 days of the issue of order of
variation work, inform the Engineer the rate which
he proposes to claim, supported by analysis of the
rates. The Engineer shall assess the quotation and
determine the rate based on prevailing market rates
within one month of the submission of the claim by
the contractor. As far as possible, the rate analysis
shall be based on the standard data book and the
relevant schedule of rates of the State. The
recommendation of the Engineer on the rate so
determined shall be submitted to the employer for
approval. The decision of the employer shall be final
and binding on the Contractor.”
8.2. Said clauses do not put absolute fetter on the opposite
parties to consider price variation. It is not in dispute
that due to certain circumstance, the lead source for
minerals could not be used. The variation in price arose
W.P.(C) No.18144 of 2022 Page 49 of 67
due to non-disclosure of appropriate source by the
opposite parties to lead and lift the minor minerals. Even
though it was within the knowledge of the opposite
parties on the date of floating the tender, instead of
bringing it to the notice of participants, i.e., the fact of
closure of Kupari Quarry, shelter of Clause 7 of Section
2 (Instructions to Bidders) of the NIT has been taken to
put entire blame on the petitioner. True it is when the
opposite parties are candid vide Letter dated 24.12.2021
(Annexure-3) in stating that the lead quarry was Kupari
for lifting minerals like moorum, metal, chips and dust
in order to execute the work awarded to the petitioner,
there was no other option left but to procure these
minerals from other source(s), which in the present case
was 80 kilometres far off Kupari.
8.3. A cue can be derived from the Variation Clause, i.e.,
Clause 36.2 of Section 4 of Part-I of General Conditions
of Contract appended to the NIT, which is clear indicator
that if the minerals are not specified in the Bill of
Quantities, the Engineer shall derive the rate for such
item from similar items in the Bill of Quantities.
8.4. To analyse above aspect, paragraph 9 of the counter
affidavit can be taken into consideration wherein it has
been admitted by the opposite parties that,
“At the cost of repetition, it is once again submitted that
the preparation of estimate is the internal work of the
W.P.(C) No.18144 of 2022 Page 50 of 67
Department to access the possible expenditure required
for execution of work, which has got no relevance for
execution of work after a prospective bidder quoting his
price submits a bid and later enters into Agreement to
execute work.”
8.5. Detailed Estimate for “Improvement to Road and CD
Work under PMGSY-III (Batch-II)”, made part of record
as Annexure-9 enclosed with Affidavit dated 18.08.2023
filed by the petitioner, makes it abundantly clear that
the estimate of the opposite parties was made taking
into account distance between Kupari Quarry and work
site. The Lead Statement appended thereto is
reproduced hereunder:
“Lead Statement
Lead Statement for Plant Mixed Materials
Name of
items
Unit Basic
Rate of
Balaso
re
Cost +
Carriage
Name
of
Quarr
y
Lea
d in
KM
Carria
ge
Royal
ty
Carriag
e +
Royalty
26.5mm
size
C:B.H.G.
Metal
Cum 794.29 943.96 Kupar
i
5 149.67 130 279.67
20mm
size
C:B.H.G.
Chips
Cum 1060.0
0
1209.67 -do- 5 149.67 130 279.67
13.2mm
size
C:B.H.G.
Chips
Cum 1083.8
1
1233.48 -do- 5 149.67 130 279.67
6.7mm
size
C:B.H.G.
Cum 739.05 888.72 -do- 5 149.67 130 279.67
4.7mm
size
C:B.H.G.
Cum 674.29 823.96 -do- 5 149.67 130 279.67
Stone Cum 83.81 233.48 -do- 5 149.67 35 184.67
W.P.(C) No.18144 of 2022 Page 51 of 67
Screening
Dust
Bitumen
(Bulk)
60/70
(VG-30)
MT 46037.
08
46646 Balas
ore
61 608.96 0 608.96
Certified that the leads provided in this estimate are
correct and minimum to the best of my knowledge.
Sd/- 06.04.2021 Sd/- 06.04.2021 Sd/- 06.04.2021
Junior Engineer Assistant Executive Executive Engineer
Rural Works Section Engineer, Rural Works Rural Works Division
Bonth Sub-Division, Bonth Bhadrak .”
8.6. It admits of no doubt that the estimate so projected by
the opposite parties consisted the cost, royalty and
carriage, to be incurred on the minor minerals procured
from Kupari Quarry. When the estimator had the
knowledge about stoppage of operations at said Quarry
on the date of making estimates, maybe that is an
internal factor, in the present set of material facts as
pleaded it would lead to demonstrate that the opposite
parties misrepresented the factual position at site. The
opposite parties cannot, therefore, take protection under
Clause 7 of Section 2 of the NIT stating that the same
forms part of agreement.
8.7. In Food Corporation of India Vrs. A.M. Ahmed & Co.,
(2006) 13 SCC 779, it was held that „escalation‟ is
normal and routine incident arising out of gap of time in
this inflammatory age in performing any contract of any
type. In Suryamani Nayak Vrs. Orissa State Housing
Board, AIR 2005 Ori 26 , this Court held that the
W.P.(C) No.18144 of 2022 Page 52 of 67
expression „escalation‟ used in an agreement ordinarily
means an agreement allowing for adjustment up and
down according to change in circumstances as in cost of
material in works contract or in cost of living in wage
agreement. However, it would not bring within its sweep
higher rate of wage which a contractor is otherwise liable
to pay. In this respect a reference to Raghunath Sahu
Vrs. State of Odisha, AIR 2022 Orissa 37 would throw
light to resolve the issue flagged in the present case. The
following is the pertinent observation made by this Court
in said reported judgment:
“20. Therefore, taking into consideration the meaning
attached to the word „escalation‟, as per terms and
conditions of the agreement, the petitioner is entitled
to get escalation cost but not the compensation, for
which the blockage of the escalation benefit has
been made. Needless to say, an „undertaking‟ is
nothing but a standard form, which every contractor
has to sign and submit to the effect that he shall not
claim for compensation for delay in work and extend
the period of work. This is submitted whenever
extension of time is granted for completion of work or
else extension will not be granted. This document is
signed, without adjudicating the merits of the claim
of the petitioner, and is done under duress or else
the contract would be liable to be terminated with
penalty, even though the petitioner may not be
responsible for delay in execution of work.”
8.8. Taking cue from the above it can be mentioned that as
the opposite parties did not disclose about closure of
W.P.(C) No.18144 of 2022 Page 53 of 67
Kupari Quarry by dint of an order of the learned
National Green Tribunal, yet the work site was shown to
the intending bidders/participants to work out/prepare
price bids. Thus, the terms of agreement could be varied
by considering that none can be forced to do the
impossible. The maxim “lex non cogit ad impossibilia”
may fit into the present set of facts, which means that
the law does not expect the performance of the
impossible.
8.9. Careful reading of representation dated 11.01.2022 of
the petitioner (Annexure-4) would reveal that since he
was restrained from leading minerals from the Kupari
Quarry, he was forced to procure the minor minerals
from Chandeidhara, which is 80 kilometres farther from
the Kupari mines. Such impasse made it impossible for
him to execute the work at the quoted/accepted price.
Therefore, he would only claim the variation in price only
on account of procurement of minor minerals.
8.10. In Faizabad-Ayodhya Development Authority, Faizabad
Vrs. Dr. Rajesh Kumar Pandey, (2022) 3 SCR 190 it has
been observed as follows:
“315.In Chandra Kishore Jha Vrs. Mahavir Prasad, (1999)
8 SCC 266, an election petition was to be presented
in the manner prescribed in Rule 6 of Chapter XXI-E
of the Patna High Court Rules. The Rules stipulated
that the election petition, could under no
W.P.(C) No.18144 of 2022 Page 54 of 67
circumstances, be presented to the Registrar to save
the period of limitation. The election petition could be
presented in the open court up to 4.15 p.m. i.e.
working hours of the court. The Chief Justice had
passed the order that court shall not sit for the rest
after 3.15 p.m. Thus, the petition filed the next day
was held to be within time. In Mohd. Gazi Vrs. State
of M.P., (2000) 4 SCC 342, the maxim “actus curiae
neminem gravabit” came up for consideration along
with maxim “lex non cogit ad impossibilia”— the law
does not compel a man to perform act which is not
possible. Following observations had been made:
„7. In the facts and circumstances of the case, the
maxim of equity, namely, actus curiae
neminem gravabit— an act of the court shall
prejudice no man, shall be applicable. This
maxim is founded upon justice and good sense,
which serves a safe and certain guide for the
administration of law. The other maxim is, lex
non cogit ad impossibilia— the law does not
compel a man to do what he cannot possibly
perform. The law itself and its administration
are understood to disclaim as it does in its
general aphorisms, all intention of compelling
impossibilities, and the administration of law
must adopt that general exception in
consideration of particular cases. The
applicability of the aforesaid maxims has been
approved by this Court in Raj Kumar Dey Vrs.
Tarapada Dey, (1987) 4 SCC 398 and
Gursharan Singh Vrs. NDMC, (1996) 2 SCC
459.‟
W.P.(C) No.18144 of 2022 Page 55 of 67
316. Another Roman Law maxim “nemo tenetur ad
impossibilia”, means no one is bound to do an
impossibility. Though such acts of taking possession
and disbursement of compensation are not
impossible, yet they are not capable of law
performance, during subsistence of a court‟s order;
the order has to be complied with and cannot be
violated. Thus, on equitable principles also, such a
period has to be excluded. In Industrial Finance
Corpn. of India Ltd. Vrs. Cannanore Spg. & Wvg.
Mills Ltd., (2002) 5 SCC 54, this Court observed that
where law creates a duty or charge and the party is
disabled to perform it, without any default and has
no remedy over, there the law will in general excuse
him. This Court relying upon the aforesaid maxim
observed as under:
„30. The Latin maxim referred to in the English
judgment lex non cogit ad impossibilia also
expressed as impotentia excusat legem in
common English acceptation means, the law
does not compel a man to do that which he
cannot possibly perform. There ought always
thus to be an invincible disability to perform
the obligation, and the same is akin to the
Roman maxim nemo tenetur ad impossible. In
Broom‟s Legal Maxims, the state of the
situation has been described as below:
„It is, then, a general rule which admits of
ample practical illustration, that impotentia
excusat legem; where the law creates a duty or
charge, and the party is disabled to perform it,
without any default in him, and has no remedy
over, there the law will in general excuse him
W.P.(C) No.18144 of 2022 Page 56 of 67
and though impossibility of performance is, in
general, no excuse for not performing an
obligation which a party has expressly
undertaken by contract, yet when the
obligation is one implied by law, impossibility
of performance is a good excuse. Thus in a
case in which consignees of a cargo were
prevented from unloading a ship promptly by
reason of a dock strike, the Court, after holding
that in the absence of an express agreement to
unload in a specified time there was implied
obligation to unload within a reasonable time,
held that the maxim lex non cogit ad
impossibilia applied, and Lindley, L.J., said:
“We have to do with implied obligations, and I
am not aware of any case in which an
obligation to pay damages is ever cast by
implication upon a person for not doing that
which is rendered impossible by causes
beyond his control.‟ ‟
317. In HUDA Vrs. Babeswar Kanhar, (2005) 1 SCC 191,
this Court considered the general principle that a
party prevented from doing an act by some
circumstances beyond his control, can do so at the
first subsequent opportunity as held in Sambasiva
Chari Vrs. Ramasami Reddi, ILR (1899) 22 Mad 179.
In HUDA Vrs. Babeswar Kanhar, (2005) 1 SCC 191,
it was observed thus:
„5. What is stipulated in Clause 4 of the letter
dated 30.10.2001 is a communication
regarding refusal to accept the allotment. This
was done on 28.11.2001. Respondent 1 cannot
be put to a loss for the closure of the office of
W.P.(C) No.18144 of 2022 Page 57 of 67
HUDA on 01.12.2001 and 02.12.2001 and the
postal holiday on 30.11.2001. In fact, he had
no control over these matters. Even the logic of
Section 10 of the General Clauses Act, 1897
can be pressed into service. Apart from the
said section and various provisions in various
other Acts, there is the general principle that a
party prevented from doing an act by some
circumstances beyond his control, can do so at
the first subsequent opportunity (see
Sambasiva Chari Vrs. Ramasami Reddi, ILR
(1899) 22 Mad 179). The underlying object of
the principle is to enable a person to do what
he could have done on holiday, on the next
working day. Where, therefore, a period is
prescribed for the performance of an act in a
court or office, and that period expires on a
holiday, then the act should be considered to
have been done within that period if it is done
on the next day on which the court or office is
open. The reason is that the law does not
compel the performance of an impossibility.
(See Hossein Ally Vrs. Donzelle, ILR (1880) 5
Cal 906.) Every consideration of justice and
expediency would require that the accepted
principle, which underlies Section 10 of the
General Clauses Act, should be applied in
cases where it does not otherwise in terms
apply. The principles underlying are lex non
cogit ad impossibilia (the law does not compel
a man to do the impossible) and actus curiae
neminem gravabit (the act of court shall
prejudice no man). Above being the position,
there is nothing infirm in the orders passed by
the forums below. However, the rate of interest
W.P.(C) No.18144 of 2022 Page 58 of 67
fixed appears to be slightly on the higher side
and is reduced to 9% to be paid with effect
from 03.12.2001 i.e. the date on which the
letter was received by HUDA.‟
318. In Presidential Poll, In re, (1974) 2 SCC 33, this
Court made similar observations. When there is a
disability to perform a part of the law, such a charge
has to be excused. When performance of the
formalities prescribed by a statute is rendered
impossible by circumstances over which the persons
concerned have no control, it has to be taken as a
valid excuse. The Court observed:
„15. The impossibility of the completion of the
election to fill the vacancy in the office of the
President before the expiration of the term of
office in the case of death of a candidate as
may appear from Section 7 of the 1952 Act
does not rob Article 62(1) of its mandatory
character. The maxim of law impotentia
excusat legem is intimately connected with
another maxim of law lex non cogit ad
impossibilia. Impotentia excusat legem is that
when there is a necessary or invincible
disability to perform the mandatory part of the
law that impotentia excuses. The law does not
compel one to do that which one cannot
possibly perform. „Where the law creates a
duty or charge, and the party is disabled to
perform it, without any default in him, and has
no remedy over it, there the law will in general
excuse him.‟ Therefore, when it appears that
the performance of the formalities prescribed
by a statute has been rendered impossible by
W.P.(C) No.18144 of 2022 Page 59 of 67
circumstances over which the persons
interested had no control, like the act of God,
the circumstances will be taken as a valid
excuse. Where the act of God prevents the
compliance of the words of a statute, the
statutory provision is not denuded of its
mandatory character because of supervening
impossibility caused by the act of God. (See
Broom‟s Legal Maxims, 10th Edn. at pp. 162-
63 and Craies on Statute Law, 6th Edn. at p.
268).‟
319. In Standard Chartered Bank v. Directorate of
Enforcement, (2005) 4 SCC 530, the legal maxim
“impotentia excusat legem” has been applied to hold
that law does not compel a man to do that which
cannot possibly be performed. Though the maxim
with respect to the impossibility of performance may
not be strictly applicable, however, the effect of the
court‟s order, for the time being, made the
authorities disable to fulfil the obligation. Thus,
when they were incapable of performing, they have
to be permitted to perform at the first available
opportunity, which is the time prescribed by the
statute for them i.e. the total period of 5 years
excluding the period of the interim order.
320. The maxim actus curiae neminem gravabit is
founded upon the principle due to court proceedings
or acts of court, no party should suffer. If any interim
orders are made during the pendency of the
litigation, they are subject to the final decision in the
matter. In case the matter is dismissed as without
merit, the interim order is automatically dissolved. In
case the matter has been filed without any merit, the
W.P.(C) No.18144 of 2022 Page 60 of 67
maxim is attracted commodum ex injuria sua nemo
habere debet, that is, convenience cannot accrue to a
party from his own wrong. No person ought to have
the advantage of his own wrong. In case litigation
has been filed frivolously or without any basis,
iniquitously in order to delay and by that it is
delayed, there is no equity in favour of such a
person. Such cases are required to be decided on
merits. In Mrutunjay Pani Vrs. Narmada Bala
Sasmal, AIR 1961 SC 1353, this Court observed
that:
„5. *** The same principle is comprised in the Latin
maxim commodum ex injuria sua nemo habere
debet, that is, convenience cannot accrue to a
party from his own wrong. To put it in other
words, no one can be allowed to benefit from
his own wrongful act.‟
321. It is not the policy of law that untenable claims
should get fructified due to delay. Similarly,
sufferance of a person who abides by law is not
permissible. The 2013 Act does not confer the benefit
on unscrupulous litigants, but it aims at and frowns
upon the lethargy of the officials to complete the
requisites within five years.
322. ***
323. In GTC Industries Ltd. Vrs. Union of India, (1998) 3
SCC 376, it was observed that while vacating stay,
it is the court‟s duty to account for the period of
delay and to settle equities. It is not the gain which
can be conferred. In Jaipur Municipal Corpn. Vrs.
C.L. Mishra, (2005) 8 SCC 423, it has been observed
that interim order merges in the final order, and it
W.P.(C) No.18144 of 2022 Page 61 of 67
cannot have an independent existence, cannot
survive beyond final decision. In Ram Krishna
Verma Vrs. State of U.P., (1992) 2 SCC 620, reliance
was placed on Grindlays Bank Ltd. Vrs. CIT, (1980)
2 SCC 191. It was held that no one could be
permitted to suffer from the act of the court and in
case an interim order has been passed and
ultimately petition is found to be without merit and is
dismissed, the interest of justice requires that any
undeserved or unfair advantage gained by a party
invoking the jurisdiction of the court must be
neutralised.
324. ***
325. ***
326. In A.R. Antulay Vrs. R.S. Nayak, (1988) 2 SCC 602,
this Court observed that it is a settled principle that
an act of the court shall prejudice no man. This
maxim actus curiae neminem gravabit is founded
upon justice and good sense and affords a safe and
certain guide for the administration of the law. No
man can be denied his rights. In India, a delay
occurs due to procedural wrangles. In A.R. Antulay
Vrs. R.S. Nayak, (1988) 2 SCC 602, this Court
observed:
„102. This being the apex court, no litigant has any
opportunity of approaching any higher forum to
question its decisions. Lord Buckmaster in
Montreal Street Railway Co. Vrs. Normandin,
1917 AC 170 (PC) (sic) stated:
„All rules of court are nothing but provisions
intended to secure the proper administration of
justice. It is, therefore, essential that they
W.P.(C) No.18144 of 2022 Page 62 of 67
should be made to serve and be subordinate to
that purpose.‟
This Court in State of Gujarat Vrs. Ramprakash
P. Puri, (1969) 3 SCC 156, reiterated the
position by saying:
„5. *** Procedure has been described to be a
handmaid and not a mistress of law,
intended to subserve and facilitate the
cause of justice and not to govern or
obstruct it. Like all rules of procedure, this
rule demands a construction which would
promote this cause.‟
Once judicial satisfaction is reached that the
direction was not open to be made and it is
accepted as a mistake of the court, it is not
only appropriate but also the duty of the court
to rectify the mistake by exercising inherent
powers. Judicial opinion heavily leans in
favour of this view that a mistake of the court
can be corrected by the court itself without any
fetters. This is on principle, as indicated in
Alexander Rodger Vrs. Comptoir D‟Escompte
De Paris, (1969-71) LR 3 PC 465 = 17 ER 120. I
am of the view that in the present situation, the
court‟s inherent powers can be exercised to
remedy the mistake. Mahajan, J. speaking for
a four-Judge Bench in Keshardeo Chamria Vrs.
Radha Kissen Chamria, 1953 SCR 136 = AIR
1953 SC 23, SCR p. 153 stated: (AIR p. 28,
para 21)
„21. *** The Judge had jurisdiction to correct
his own error without entering into a
W.P.(C) No.18144 of 2022 Page 63 of 67
discussion of the grounds taken by the
decree-holder or the objections raised by
the judgment-debtors.‟
***”
8.11. With such clarity in perspective of legal position, it can
now safely be said that the petitioner was led to believe
that he was to lead the minor minerals in question from
Kupari Quarry and accordingly he quoted the price. In
the representation dated 11.01.2022, he has only
requested for consideration of revision of rates by
indicating that he had to lift the minerals from
Chandeidhara which was farther in distance than
Kupari Quarry. This factual aspect is not controverted
by the opposite parties.
8.12. This Court, therefore, does not find the plight reflected in
the grievance petition of the petitioner, as presented
before the opposite parties, to be unreasonable.
Conclusion:
9. It is elucidated from the pleadings and the arguments
advanced by the counsel for the respective parties that
the petitioner was not allowed to lead the minerals, such
as moorum, metals, chips and dust from Kupari Quarry
which was suggested at the time of issue of NIT with the
knowledge of the opposite parties that the quarry
operation has been restricted by virtue of an order of the
W.P.(C) No.18144 of 2022 Page 64 of 67
learned National Green Tribunal. The representation of
the petitioner which was considered by a Committee
constituted to comply with the direction of this Court in
earlier round of litigation, vide Order dated 15.03.2022
in W.P.(C) No.3773 of 2022. Having not denied the fact
stated therein that “to carry out the work and execute the
same to keep in the time Schedule I am forced to procure
the minor minerals now from Chandeidhara which is
further 80 kilometres from the Kupari Mines. This has
thus accruing to more overhead expenses towards the
transport in particular”, merely relying on Clause 13.4 of
the Standard Bidding Documents the Committee refused
to accede to the claim of the petitioner for price variation
to the extent of extra overhead expenses incurred by him
for execution of work, for the opposite parties failed to
provide access to Kupari Quarry to procure the minor
minerals.
9.1. It could be discerned from the counter affidavit as
discussed in the foregoing paragraphs that the reason
for rejecting claim of the petitioner based on Clause 13.4
is inapplicable. To affirm such contention of the
petitioner and negative the argument canvassed by the
learned Additional Standing Counsel it is apt to observe
that the opposite parties are candid enough to say that
the Standard Bid Document formed part of NIT and
Agreement was entered into between the petitioner and
W.P.(C) No.18144 of 2022 Page 65 of 67
the Superintending Engineer on 01.12.2021. The
documents enclosed with the Affidavit dated 18.08.2023
do evince the fact projected by the opposite parties that
moorum, metal, chips and dust (minor minerals other
than sand) would be led from Kupari Quarry. Due to the
failure of the opposite parties to facilitate procurement of
minerals from Kupari Quarry — resulting from a
restraint order issued by the learned National Green
Tribunal— an impediment arose that could not
reasonably have been foreseen by the petitioner during
his “Site Visit” as required under Clause 7, Section 2:
Instructions to Bidders appended to the NIT.
Consequently, the petitioner incurred additional
overhead charges. Therefore, the assertion made by the
learned Additional Standing Counsel supporting refusal
by Order dated 09.06.2022 of the Superintending
Engineer to consider his claim for revision of prices is
hereby rejected. The “Lead Statement” forming part of
the “Detailed Estimate for Improvement to Road and CD
Work under PMGSY-III (Batch- II)” of Office of the
Executive Engineer, Rural Works Division, Bhadrak vide
Annexure-9 enclosed with Affidavit dated 18.08.2023
filed by the petitioner, without any doubt in mind
clarifies that the estimate included cost, royalty and
carriage of above minor minerals (other than “sand”) led
from Kupari Quarry.
W.P.(C) No.18144 of 2022 Page 66 of 67
9.2. In the aforesaid premises, the decision taken in the
Meeting dated 09.06.2022 by the Committee and the
Order dated 09.06.2022 of the Superintending Engineer,
Rural Works Division stemming on Clauses 13.4 and 7.1
of the NIT cannot be said to be correct approach and
reasonable or rational. The decision and the order are
held to be misdirected approach and misconstruction of
the terms and conditions laid down in the specific NIT
which formed part of the agreement between the
Superintending Engineer and the petitioner on
01.12.2021. In view of the discussions set forth in the
preceding paragraphs, there can be no other view than
to hold that the petitioner is entitled to the benefit
claimed for in his representation dated 11.01.2022
(Annexure-4).
9.3. Having diligently considered all the material aspects,
this Court comes to the conclusion that the rejection of
claim of the petitioner vide Order dated 09.06.2022
(Annexure-7) by the Superintending Engineer, Rural
Works Division, Bhadrak passed as a sequel to the
decision taken in the Meeting dated 09.06.2022
(Annexure-6) by the Committee constituted in pursuance
of Order dated 15.03.2022 passed in W.P.(C) No.3773 of
2022 of this Court to consider the representation dated
11.01.2022 (Annexure-4) of the petitioner seeking
escalation/variation in price/rate for revision as per
W.P.(C) No.18144 of 2022 Page 67 of 67
terms of variation contained in Clause 35 of Section 4:
General Conditions of Contract cannot be countenanced
and the matter deserves indulgence.
9.4. In the result, the Order dated 09.06.2022 (Annexure-7)
by the Superintending Engineer, Rural Works Division,
Bhadrak passed and the decision taken in the Meeting
dated 09.06.2022 (Annexure-6) are set aside.
9.5. Having done so, this Court directs the Superintending
Engineer, Rural Works Division, Bhadrak to consider the
representation dated 11.01.2022 of the petitioner afresh
pragmatically in the light of the discussions supra. The
decision taken on revised variation in price be
communicated to the petitioner at the earliest not later
than six weeks from date.
9.6. With the aforesaid observations and directions, this writ
petition is disposed of and pending interlocutory
applications, if any, are disposed of accordingly.
9.7. In the circumstances, there shall be no order as to costs.
I agree.
(HARISH TANDON) (MURAHARI SRI RAMAN)
CHIEF JUSTICE JUDGE
High Court of Orissa, Cuttack
The 4
th February, 2026/Aswini/MRS/Laxmikant
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