Orissa High Court
M/S. Stalwart Projects Pvt vs Vice Chairman on 6 March, 2025
Author: K.R. Mohapatra
Bench: K.R. Mohapatra
IN THE HIGH COURT OF ORISSA AT CUTTACK
W.P.(C). NO.5247 OF 2025
M/s. Stalwart Projects Pvt. .... Petitioner
Ltd.,Bhubaneswar
Mr. Debakanta Mohanty, Advocate
-versus-
Vice Chairman, Bhubaneswar .... Opp. Parties
Development Authorit, Bhubaneswar &
ors.
Mr. Dayananda Mohapatra, Sr. Advocate
(for BDA)
Mr. Prafulla Kumar Rath, Senior Advocate
being assisted by Mr. Saibarta Rath, Advocate
(For Opposite Party No. 3)
CORAM:
JUSTICE K.R. MOHAPATRA
JUSTICE SANJAY KUMAR MISHRA
ORDER
Order No. 06.03.2025 03. 1. This matter is taken up through hybrid mode.
2. Petitioner in this writ petition prays for a direction to the authorities under the Bhubaneswar Development Authority-Opposite Party Nos.1 & 2 to cancel the provisional of allotment dated 19.06.2024 (Annexure-4) issued in favour of Opposite Party No.3 and direct them to allot the land in question in favour of the Petitioner, who was the second highest bidder and issue allotment letter in its favour.
3. Mr. Mohanty, learned Counsel for the Petitioner submits that e-auction notice dated 25.01.2024 was issued by the Bhubaneswar Development Authority for auction sale of plot for development of commercial and residential project measuring an area of Ac. 8.068 at Patia, Bhubaneswar on as is where is basis to be held of 27.02.2024.
4. The Opposite Party No.3 came out successful being the highest bidder but he failed to deposit 20% so also further 70% of the bid amount within stipulated period.
5. Hence, the allotment should be cancelled in terms of clause nos.8.3 and 8.4 of the Brochure issued by the Bhubaneswar Development Authority (BDA) under Annexure-2. Clause 8.3 and 8.4 reads as under:-
"8.3 The balance bidding amount calculated @ 20% of the successful bid will be deposited within 2 (two) months of issue of provisional allotment. 8.4 The remaining bidding amount calculated @ 70% of the successful bid will be deposited within 8 (eight) months of issue of provisional allotment. The balance payment (@70% of bid amount) can be made in instalments within the specified time. Any delay in issuance of NOC or delay to avail loan shall not be considered as ground for non-payment of total consideration in time as specified above."
6. It is the submission of Mr. Mohanty, learned Counsel for the Petitioner that in view of the aforesaid clauses, the provisional allotment letter under Annexure-4 issued in favour of Opposite Party No.3 should be cancelled and in view of clause no.6.8 of the Brochure, the same should be settled in favour of the Petitioner, who is the second highest bidder.
7. Mr. Rath, learned Senior Advocate appearing for the Opposite Party No.3 submits that the clause 6.8 of the Brochure makes it clear that in case the highest bid is cancelled or highest bidder withdraws from the bid process, Page 2 of 4 BDA shall have the right to forfeit the EMD and e-bid participation charges of the H1 bidder and at its own discretion may select the second highest bidder H2 at the highest price quoted by H1 bidder. Such a situation has not yet arisen.
8. He further submits that from recently the Bhubaneswar Development Authority on consideration of his prayer for extension of time, issued letter no.4292 dated 28.02.2025 which stipulates as under:-
"To Mr. Kalinga Keshari Rath (Managing Director) M/S EVOS BUILCON PRIVATE LIMITED Plot No.-M76, Housing Board Colony, Baramunda, Bhubaneswar-751003 E mail [email protected] Mob. No.9040051152 Sub:Deposit of balance bid amount.
Ref: This office letter No.20631/BDA dt. 19.06.2024 Sir, With reference to the subject cited above, I am directed to inform you that you were intimated in the above referred letter to deposit the 20% of the H1 bid amount of Rs. 48,13,20,000/- (Rupees Forty-Eight Crore Thirteen Lakh Twenty Thousand) only within two months (Sixty days) and the balance 70% of the H1 bid amount of Rs. 168,46,20,000/- (Rupees One Hundred Sixty-Eight Crore Forty- Six Lakh Twenty Thousand) only within eight months (Two Hundred Forty days).
Further, as per your request, extension of six months time ie. up to 13.02.2025 was allowed in your favour to deposit the above balance 20% of bid amount. But, you have not deposited the same yet.
Therefore, you are directed once again to deposit the entire balance bid amount with interest as applicable within fifteen days from Page 3 of 4 issue of this letter under intimation to the undersigned. Non-compliance on your part within the specified time, the allotment stands automatically cancelled.
Yours faithfully"
Xxxxxxxxxx
9. The aforesaid letter makes it clear that the bid in favour of the Opposite Party No.3 has not yet been cancelled and the Opposite Party No.3 has an option to deposit the balance bid amount within the extended period.
10. Opposite Party No.3 has also filed a writ petition in W.P.(C) No.5754 of 2025 for extension of time to deposit the bid amount, which is pending for consideration.
11. Mr. Mohapatra, learned Senior Advocate appearing for the Bhubaneswar Development Authority submits that bid in favour of the Opposite Party No.3 has not yet been cancelled so occasion to exercise discretion by the BDA under clause
6. 8 of the Brochure has not yet arisen.
12. In view of the submissions made by the learned Counsel for the parties, this Court is of the considered opinion that the writ petition is pre-mature. Hence, the same stands disposed of with an observation that the Petitioner may renew his prayer if any cause of action arises in future.
(K.R. Mohapatra) Judge Signature Not Verified Digitally Signed Signed by: BANITA PRIYADARSHINI PALEI Designation: SR. STENOGRAPHER Reason: AUTHENTICATION Location: HIGH COURT OF ORISSA, CUTTACK (S.K. Mishra) Banita Date: 07-Mar-2025 13:14:59 Judge Page 4 of 4