1 2025:CGHC:36586-DB NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPC No. 3941 of 2025 M/s Graceful Media Pvt. Ltd., Through Its Proprietor Vishwa Ranjan Purohit S/o Shri Hrishikesh Purohit, Aged About 41 Years, Address - S.F.- 22 To 24, Block A, Geekay Milestone, New Rajendra Nagar, Raipur, District - Raipur (C.G.) ... Petitioner(s) versus 1 The Municipal Corporation Raipur, Through - Its Commissioner, White House, Near Gandhi Chowk, Raipur, District - Raipur (C.G.) 2 The Superintendent (Advertisement) The Municipal Corporation Raipur, White House, Near Gandhi Chowk, Raipur, District - Raipur (C.G.) ... Respondent(s) For Petitioner : Mr. Rajesh Kesharwani, Advocate For Respondents : Mr. Pankaj Agrawal, Advocate Hon'ble Shri Ramesh Sinha, Chief Justice Hon'ble Shri Bibhu Datta Guru , Judge Order on Board Per Ramesh Sinha , Chief Justice 28.07.2025 JYOTI SHARMA Digitally signed by JYOTI SHARMA Date: 2025.07.29 12:12:54 +0530 2 1. Heard Mr. Rajesh Kesharwani, learned counsel for the petitioner as well as Mr. Pankaj Agrawal learned Advocate for the respondents. 2. By way of this petition, the petitioner has prayed for following reliefs:- 10.1. The Hon'ble Court may kindly be pleased to call for entire records of the matter in hand. 10.2. The Hon'ble Court may kindly be pleased to issue appropriate writ/writs, direction/directions, order/orders to quash/set aside the impugned order dt. 14/02/2025 (Annexure P/1) and System Tender no.166676 dt. 4/04/2025 (Annexure P/2). 10.3. The Hon'ble Court may kindly be pleased to direct the respondent authorities to let the petitioner carry out uninterrupted work/construction, maintenance, and operation of the smart toilets along with the 51 unipoles. 10.4. The Hon'ble Court may kindly be pleased to direct the respondent no. 01 to provide petitioner with proper details about outstanding amount along with 15 days' time to pay the deficient amount of the tender. 10.5. The Hon'ble Court may kindly be pleased to let the petitioner utilize, operate, and-maintain the 51 unipoles installed by the petitioner in order to maintain smart toilets. 3 10.6. The Hon'ble Court may kindly be pleased to direct the respondents to reimburse/refund the petitioner with the amount invested in construction of smart toilets and unipoles, in case of tender cancellation. 10.7. Any other relief, which the Hon'ble Court deems fit looking to the facts and circumstances of the case, may also be granted to the petitioner. 3. Brief facts necessary for disposal of this writ petition is that the petitioner runs an advertising agency, namely Graceful Media, based in Raipur, Chhattisgarh; offering various media services. On 05/04/2021, the respondent no. 01 invited bids for construction, operation & maintenance of 18 smart toilets along with erection of unipoles for a period of 10 years in various locations of Municipal Corporation, Raipur. The petitioner's bid was successfully accepted for all 18 locations by the respondent no. 01 and subsequently 18 different agreements were entered into by the petitioner and respondent authority on different dates. The agreements were being entered into till December 2022. The aforesaid agreements required the petitioner to deposit 30% of the tender amount within 15 days and to deposit the balance amount within 06 months. The tender amount would be increased by 5% every year and the Petitioner had to deposit the tender amount in advance, one month before the beginning of the year. The petitioner duly and 4 diligently satisfied the above said conditions. As a result, on 19/12/2022, 18 work orders were issued for each location to the petitioner. 4. Accordingly, the petitioner duly and precisely constructed smart toilets and 51 unipoles as per the instructions and the agreement. Suddenly, out of the blue on 04/02/2025, the respondent authority issued 18 demand letters for the yearly payments to be made, of the years 2023 to 2024 and 2024 to 2025 to be paid within 07 days. Thereafter, addressing the above demand letter of the respondent authority, the petitioner wrote a detailed letter dt. 14/02/2025 informing that all the advertisements on unipoles installed, have been forcefully removed without any prior notice before completion of 07 days of the above letter. Thereafter, 14/02/2025 the respondent authority issued impugned tender cancellation order incorrectly alleging upon petitioner about non-payment of total outstanding amount Rs. 2,71,35,336/ and non compliance of the agreement terms & quoting clause 9 of the said agreement which states that if there is delay in payment beyond 3 months the respondent authority can cancel and confiscate the unipoles. 5. Thereafter, on 17/02/2025, petitioner again wrote a letter to the respondent authority explaining the reasons behind delay caused and stated that according to the said contract, the petitioner was to construct 18 smart toilets in 700-1000 sq. ft. 5 per toilet at their own expense, out of which the petitioner diligently constructed 13 toilets in the year 2023 itself and remaining 5 toilets couldn't be constructed because the locations were not provided by the respondent itself. It is to be noted that the tender was on BOT (Build Own and Transfer) model based upon Revenue Sharing Model for period of 10 years. In revenue sharing model, the respondent authority was to grant approval for erection of Unipoles on 2400 sq. ft. per toilet as well as grant advertising rights on the said unipoles for 10 years. The petitioner on 08/12/23 has preferred 18 letters to the respondent authority stating details of the cheque deposited along with the amount. Yet the same was never encashed by the respondent authority, and completely ignored. Further, as per the agreement, the respondent had to provide the petitioner with the location for construction of the toilet along with the Unipoles and the construction work was to be completed within a period of 03 months from the date of the agreement. Thereafter, the petitioner preferred a letter to the respondent authorities informing construction of the remaining 05 smart toilets and unipoles which has not been carried out till date because the area has not been clarified by the respondents themselves. But, till date the petitioner have capitalized an amount of almost Rs.4 crores in the construction of 13 toilets and after the construction petitioners are operating and maintaining the said 13 toilets, till date. Thereafter,despite 6 repeated requests, not to cancel and forfeit the tender, the respondent illicitly issued a fresh tender notice on 04/04/2025 inviting online bids for operation, utilisation and maintenance of the unipoles and smart toilets constructed by the petitioner itself. 6. Thereafter, the petitioner wrote a letter to the respondent authority 17/04/2025 on well as as 17/06/2025 to provide petitioner with calculation of the outstanding amount to be paid by the petitioner, fully expressing readiness to cooperate with the respondent authority yet the respondent have overlooked and blatantly ignored these requests and letters. The respondent authorities are being hypocritical and two faced when on one hand they have issued tender cancellation order and on the other hand serving a letter dt. 04/03/2025, imposing Rs. 10,000/- fine for negligence in maintaining the smart toilet in Ward No. 41, Sundar Lal Sharma Ward. On 20/12/2024, the respondents have illicitly sent a letter to the petitioner regarding recovery of Rs. 7cr and warning to freeze the bank accounts. It is crucial to note that no opportunity of hearing has ever been provided with regard to recovery of these huge amounts. The actions of the respondent authorities lack merit, scream capriciousness and should be vitiated. Hence, the present petition. 7. Learned counsel for the petitioner submits that the action of the 7 respondent authorities is arbitrary, illegal and contrary to law and provisions. He also submits that the respondents have failed to provide any opportunity of hearing before issuing a premeditated tender cancellation order dated 14.02.2025. He also submits that as per the agreement notice of 15 days prior to taking any stringent action to cancel the tender but the respondents have evidently erroneously issued notice on 11.02.2025 with its last 14.02.2025. He also submits that 18 demand letters have been issued and only 3 days time was given for making the payments. He also submits that before cancellation of tender, the respondent authorities have forcefully removed the advertisement displayed on the Unipoles which caused loss to the petitioner. He also submits that 13 toilets were ready and remaining 5 toilets could not be constructed due to failure of the authority to provide locations. He further submits that no opportunity of hearing was provided to the petitioner before cancelling the agreement. He further placed his reliance in the case of UMC Technologies Private Lmd. V/s Food Corporation of India and Anr citation: 2020 Law Suit (SC) 706. 8. On the other hand, learned counsel appearing for respondent supports the impugned order and submits that the petitioner was issued the work order for construction of 18 smart toilets and Unipoles along with advertising rights for period of 10 years at multiple spots in the city of Raipur and through the system of 8 BOO (Build, Own and Operate). Further, out of 18 smart toilets only 13 toilets were constructed and 5 were not constructed. He also submits that notice was also issue to the petitioner for payment of remaining amount but the same was not done. 9. We have heard learned counsel for the parties and perused the impugned order and other documents appended with writ petition. 10. From perusal of the impugned order, it transpires that the petitioner was issued the work order for construction of 18 smart toilets and Unipoles along with advertising rights for period of 10 years at multiple spots in the city of Raipur through the system of BOO (Build, Own and Operate). Further, after the lapse of time only 13 smart toilets were constructed and 5 are yet to be constructed. Further on 04.02.2025 separate letters were issued to the petitioner for payment of outstanding dues in respect of each work order but the same was not done. According to clause (09) of the tender conditions, as the payment is not made even after more than 3 months from the stipulated period, the respondent Corporation cancelled the tender work. 11. The impugned Termination of tender work was made vide order dated 14.02.2025, but the writ petition has been filed by petitioner after a delay of 5 months without explaining the delay. Hence, considering the unexplained delay in filing the writ 9 petition and particularly considering the submissions advanced by the learned counsel appearing for the parties, perusing the impugned order and reasons assigned by the respondent - Municipal Corporation in rejecting the petitioner’s contract, we are of the considered opinion that the respondent – Municipal Corporation, Raipur has not committed any illegality warranting interference by this Court. 12.Accordingly, the writ petition being devoid of merit is liable to be and is hereby dismissed. No cost(s). Sd/- Sd/- (Bibhu Datta Guru) (Ramesh Sinha) Judge Chief Justice Gowri/ Jyoti