Orissa High Court halts BDA's contract termination with firm managing Cuttack Netaji Bus Terminal

The Orissa High Court temporarily blocked the Bhubaneswar Development Authority (BDA) from terminating its contract with a Maharashtra-based firm managing the Cuttack Netaji Bus Terminal (CNBT).

A two-judge bench, in an order on Tuesday, directed the BDA to suspend its April 21 termination notice until June 30, 2025, allowing the firm to continue operations.

The court noted the BDA failed to provide reasons for ending the five-year agreement prematurely. Justices KR Mohapatra and Savitri Ratho observed that the termination appeared arbitrary, with no faults cited against the firm.

Contract Details and Dispute

BDA hired the firm in August 2023 to manage CNBT, a Rs 90-crore facility built on 14.95 acres in Cuttack’s Khannagar area with a contract valid until August 2028. However, on April 21 this year, BDA ordered the firm to demobilise staff by April 30, citing a reduction in work scope.

Subsequently, the firm challenged the move, arguing that the termination lacked justification. Senior advocate Saurjya Kanta Padhi called it “arbitrary,” stressing no new agency had been appointed. Meanwhile, BDA’s counsel countered that contractual disputes should be handled by civil courts in Bhubaneswar, not writ petitions.

The High Court, however, issued a notice to BDA, seeking a response by June 30.

ALSO READ: Orissa High Court directs govt to reappoint 15 employees disengaged with SIET closure

CNBT’s Operational Status

Despite the termination notice, the firm continues managing CNBT, which serves as a critical transit hub. The court emphasised that maintaining stability until a final decision, stating the firm’s role aligns with the original agreement.

Notably, CNBT, developed by the Odisha Bridge and Construction Corporation, remains operational, with no disruptions reported.