Orissa High Court stays BDA's termination of agreement with firm managing Cuttack Netaji Bus Terminal

Court directs BDA to maintain status quo until June 30, 2025, following challenge by Maharashtra-based firm over premature termination.
The Netaji Bus Terminal at Khannagar in Cuttack
The Netaji Bus Terminal at Khannagar in CuttackExpress | DEBADATTA MALLICK
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CUTTACK: Bhubaneswar Development Authority (BDA)’s notice of termination of agreement with a Maharashtra-based firm for maintenance and management of Cuttack Netaji Bus Terminal (CNBT) has come under the Orissa High Court scanner.

The division bench of Justices KR Mohapatra and Savitri Ratho recently directed BDA to keep the notice of termination in abeyance till June 30. The termination notice issued on April 21, 2025 directed the firm to demobilise its personnel and also intimated that the last working day of the firm at CNBT will be April 30.

The agreement was executed by BDA with the firm on August 25, 2023. It was valid till August 24, 2028. The court issued the direction after the firm challenged the notice on the grounds that no reason has been assigned for the premature termination of the agreement.

In the order on May 1, the bench noted that no reason has been assigned by the BDA for termination of the agreement. “It also appears that in the garb of exercising the power to reduce the scope of the work, BDA has terminated the agreement prematurely w.e.f. 1st May, 2025. No fault/default has been attributed to the petitioner for such premature termination. Hence, the matter requires consideration,” the bench observed.

“Since we find a prima facie case in favour of the petitioner and have issued notice in the matter, the continuance of the petitioner to perform the job as per agreement should continue till the next date (June 30),” the bench ordered and issued notice to BDA.

The CNBT is a hi-tech bus stand built by the Odisha Bridge and Construction Corporation over 14.95 acre of land at Khannagar area in Cuttack at a cost of Rs 90 crore.

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