Karnataka High Court
Sri Mahantesh vs The State Of Karnataka on 1 July, 2024
Author: Hemant Chandangoudar
Bench: Hemant Chandangoudar
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NC: 2024:KHC:24506
WP No. 22377 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 1ST DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
WRIT PETITION NO. 22377 OF 2019 (GM-TEN)
BETWEEN:
SRI. MAHANTESH,
AGED ABOUT 43 YEARS,
S/O HANUMANTHAPPA,
R/AT KONANTHALE,
HIREGONIGERE POST,
HONNALLI TALUK,
DAVANAGERE DISTRICT - 577 217.
...PETITIONER
(BY SRI. NAGARAJ DAMODAR, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA,
REPRESENTED BY ITS PRINCIPAL SECRETARY,
PUBLIC WORKS, PORT & INLAND
WATER TRANSPORT DEPARTMENT,
3RD FLOOR, VIKASA SOUDHA,
BANGALORE - 560 001.
2. THE UNDER SECRETARY,
Digitally signed by B
K PUBLIC WORKS PORT AND INLAND
MAHENDRAKUMAR
Location: HIGH WATER TRANSPORT DEPARTMENT,
COURT OF VIKASA SOUDHA, BANGALORE - 560 001.
KARNATAKA
3. THE EXECUTIVE ENGINEER,
PUBLIC WORKS, PORT AND INLAND WATER, TRANSPORT
DEPARTMENT,
P.B. ROAD, DAVANAGERE - 577 002.
...RESPONDENTS
(BY SMT. ADITHI M.V, AGA)
THIS W.P IS FILED UNDER ARTICLES 26 AND 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED
CORRIGENDUM NOTIFICATION DATED 25.01.2019 (ANNX-C) AND LETTER
DATED 25.04.2019 (ANNX-F) ISSUED BY THE R-3 AND CONSEQUENTLY
QUASH THE IMPUGNED E-PROCUREMENT TENDER NOTIFICATION
DATED 21.05.2019(ANNX-H) ISSUED BY THE R-3 AND THEREBY DIRECT
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NC: 2024:KHC:24506
WP No. 22377 of 2019
THE R-3 TO CONSIDER THE REPRESENTATION/LETTER DATED
03.05.2019 VIDE ANNX-G GIVEN BY THE PETITIONER, BY LETTING THE
PETITIONER TO EXECUTE THE WORK KEEPING INTACT ALL THE
CONDITIONS OF E-PROCUREMENT NOTIFICATION DATED 15.11.2018
(ANNX-A) AND ETC.,
THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B'
GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
This petition is filed by the petitioner against the tender notification dated 15.11.2018, issued by respondent No.3 inviting bids for various civil works. Condition No.10 of the tender document stipulated that GST would be paid separately on the contract amount in accordance with the Government order dated 10.10.2018. The petitioner participated in the tender process, emerged as the successful bidder, and was issued a letter of intent dated 14.02.2019. In compliance with the letter of intent, the petitioner provided a fixed deposit towards a bank guarantee amounting to Rs.6,26,310/- to respondent No.3.
2. Subsequently, respondent No.3 issued a corrigendum dated 25.01.2019, which amended condition No.10 and withdrew the requirement for separate GST payment on the contract amount. The petitioner submitted a representation requesting respondent No.3 to retract the corrigendum and honor the original condition for separate GST payment as stated in the initial tender document. Instead of addressing the representation, respondent No.3 forfeited the earnest money deposit (EMD) submitted by the petitioner, alleging non-performance of the work under the tender notification. Therefore, this petition has been filed.
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3. The arguments of the learned counsel for the petitioner and the learned AGA for the State have been duly considered .
4. Initially, condition No.10 of the tender document mandated separate GST payment on the contract amount as per the Government order dated 10.10.2018. The petitioner, having accepted this condition, participated in the tender process and secured the bid. Therefore, respondent No.3's decision to issue a corrigendum withdrawing this condition, and subsequently forfeiting the petitioner's EMD, constitutes an error. The petitioner did not violate any terms specified in the tender notification. Hence, respondent No.3's action in forfeiting the petitioner's EMD amount is deemed arbitrary and discriminatory. Hence, I pass the following:
ORDER i. The writ petition is allowed;
ii. Respondent No.3 is hereby directed to refund the earnest/EMD money deposited by the petitioner following the tender notification dated 15.11.2018, vide Annexure-A, within a period of three months from the date of receipt of certified copy of this order.
Sd/-
JUDGE HDK