Section 15 in Rules for Rate Contract with Small Scale Industries of Orissa registered with the Directorate of EP&M, Orissa
15. Cancellation of Contract.
- (i) The Director shall have the power to cancel/revoke the contract during its currency if the contractor has violated any of the conditions of the contract as stipulated in these rules. Before cancelling/revoking the rate contracts, show cause notice may be issued and at least one personal hearing be granted to the affected contractor, if he so desires.(ii)The Director may also revoke the contract at any time for any of the following reasons(a)If the management of the Small Scale Industry is found guilty of malpractices like bribery and corruption;(b)Where the Partners/Officers/representative of the Small Scale Industry are convicted for offences involving moral turpitude in relation to business dealings or security considerations or loyalty to the State or criminal offences and for insolvency declared under the due process of law :Provided that the contractor shall be given adequate opportunity by the Director to show cause and explain his position before revocation/cancellation of the contract is ordered;(iii)The Director may at his discretion, depending on the gravity of the offence, shall have the power to suspend the contract till final disposal of the case for revocation/cancellation of the contract;(iv)If the offence is sufficiently grave in the opinion of the Director, a contractor can be banned from business dealings with the Government Departments and Agencies under their control subject to prior approval of the Secretary, Industries Department, Government of Orissa.
