Nice catch. Its bug in kendo-ui and you can also report this bug into kendo-UI bug tracking.
Please try with the below code snippet.
<!DOCTYPE html>
<html>
<head>
<title>Jayesh Goyani</title>
<link rel="stylesheet" href="http://kendo.cdn.telerik.com/2016.1.112/styles/kendo.common.min.css">
<link rel="stylesheet" href="http://kendo.cdn.telerik.com/2016.1.112/styles/kendo.rtl.min.css">
<link rel="stylesheet" href="http://kendo.cdn.telerik.com/2016.1.112/styles/kendo.default.min.css">
<link rel="stylesheet" href="http://kendo.cdn.telerik.com/2016.1.112/styles/kendo.mobile.all.min.css">
<script src="https://ajax.googleapis.com/ajax/libs/jquery/1.12.0/jquery.min.js"></script>
<script src="http://kendo.cdn.telerik.com/2016.1.112/js/angular.min.js"></script>
<script src="http://kendo.cdn.telerik.com/2016.1.112/js/jszip.min.js"></script>
<script src="https://github.com/downloads/SteveSanderson/knockout/knockout-2.0.0.debug.js"></script>
<script src="http://kendo.cdn.telerik.com/2016.1.112/js/kendo.all.min.js"></script>
<script src="http://rniemeyer.github.io/knockout-kendo/js/knockout-kendo.min.js"></script>
<style>
</style>
</head>
<body>
<input id="categories" />
<br />
<br />
<input id="products" disabled="disabled" />
<br />
<br />
<input id="orders" disabled="disabled" />
<script>
$(document).ready(function () {
var categories = $("#categories").kendoComboBox({
filter: "contains",
placeholder: "Select category...",
dataTextField: "CategoryName",
dataValueField: "CategoryID",
dataSource: {
type: "odata",
serverFiltering: true,
transport: {
read: "https://demos.telerik.com/kendo-ui/service/Northwind.svc/Categories"
}
}
}).data("kendoComboBox");
var products = $("#products").kendoComboBox({
autoBind: false,
cascadeFrom: "categories",
filter: "contains",
placeholder: "Select product...",
dataTextField: "ProductName",
dataValueField: "ProductID",
dataSource: {
type: "odata",
serverFiltering: true,
transport: {
read: "https://demos.telerik.com/kendo-ui/service/Northwind.svc/Products"
}
}
}).data("kendoComboBox");
var orders = $("#orders").kendoComboBox({
autoBind: false,
cascadeFrom: "products",
filter: "contains",
placeholder: "Select order...",
dataTextField: "Order.ShipCity",
dataValueField: "OrderID",
dataBound: onDataBound,
dataSource: {
type: "odata",
serverFiltering: true,
transport: {
read: "https://demos.telerik.com/kendo-ui/service/Northwind.svc/Order_Details?$expand=Order"
}
}
}).data("kendoComboBox");
});
function onDataBound(e) {
if ($("#products").data("kendoComboBox").selectedIndex == -1) {
$("#orders").data("kendoComboBox").enable(false);
}
}
</script>
</body>
</html>
Let me know if any concern.