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Karnataka High Court

M/S Chemixil Corporation vs State Of Karnataka on 20 February, 2025

Author: R Devdas

Bench: R Devdas

                                             -1-
                                                          NC: 2025:KHC:7985
                                                       WP No. 4144 of 2025
                                                   C/W WP No. 4145 of 2025
                                                       WP No. 4146 of 2025


                   IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                        DATED THIS THE 20TH DAY OF FEBRUARY, 2025

                                          BEFORE
                            THE HON'BLE MR JUSTICE R DEVDAS
                        WRIT PETITION NO. 4144 OF 2025 (GM-TEN)
                                            C/W
                        WRIT PETITION NO. 4145 OF 2025 (GM-TEN)
                        WRIT PETITION NO. 4146 OF 2025 (GM-TEN)


                   IN WP No. 4144/2025

                   BETWEEN:

                   M/S DELICIA CHEMICALS
                   A COMANY REGD. UNDER
                   THE PROVISIONS OF PARTNERSHIP
                   ACT 1932, HAVING OFFICE AT
                   NO 118/1, 1ST FLOOR 5TH MAIN ROAD
                   CHAMARAJAPET, BENGALURU 560018
Digitally signed   REPRESENTED BY ITS PARTNER
by JUANITA
THEJESWINI         SRI T A S MURTHY
Location: HIGH                                                ...PETITIONER
COURT OF
KARNATAKA          (BY SRI. JAYAKUMAR S PATIL., SR. COUNSEL FOR
                       SRI. S KALYAN BASAVARAJ., ADVOCATE)

                   AND:

                   1.   STATE OF KARNATAKA
                        DEPARTMENT OF INDUSTRIES AND COMMERCE
                        VIKAS SOUDHA DR AMBEDKAR ROAD
                        BENGALURU 560001
                        REP. BY ITS PRINCIPAL SECRETARY
                             -2-
                                          NC: 2025:KHC:7985
                                      WP No. 4144 of 2025
                                  C/W WP No. 4145 of 2025
                                      WP No. 4146 of 2025


2.   THE KARNATAKA SOAPS AND
     DETERGENTS LIMITED
     NO 27 INDUSTRIAL SUBRUB
     BENGALURU -PUNE HIGHWAY
     RAJAJINAGAR, BENGALURU 560055
     REP. BY ITS MANAGING DIRECTOR
                                           ...RESPONDENTS
(BY SRI.SHAMANTH NAIK., HCGP FOR R1
    SRI. GANGADHAR R GURUMATH., SR. COUNSEL FOR
    SMT. MANJULA D., ADVOCATE FOR R2)

      THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE
INVITING TENDER PRODUCED AT ANNX-A IN SO FAR AS IT
RELATES TO CONDITIONS STIPULATED AT SL.NO.6, 10, 11,
12, 13 AND 14 OF APPENDIX A AS IT STOOD AMENDED BY 3
ADDENDUMS     ISSUED   ON   22.01.2025,   03.02.2025   AND
06.02.2025 AND ETC.


IN WP NO. 4145/2025

BETWEEN:

M/S CHEMIXIL CORPORATION
A COMPANY REGISTERED UNDER
THE PROVISIONS OF INDIAN
PARTNERSHIP ACT 1932
HAVING OFFICE AT NO 109
SHREESHTABUMI COMPLEX
K R ROAD, BENGALURU 560004
REP BY ITS PARTNER
SRI. B.S. GURURAJ
                                        ...PETITIONER
(BY SRI. JAYAKUMAR S PATIL., SR. COUNSEL FOR
    SRI. S KALYAN BASAVARAJ., ADVOCATE)
                            -3-
                                        NC: 2025:KHC:7985
                                     WP No. 4144 of 2025
                                 C/W WP No. 4145 of 2025
                                     WP No. 4146 of 2025


AND:

1.   STATE OF KARNATAKA
     DEPARTMENT OF INDUSTRIES
     AND COMMERCE VIKAS SOUDHA
     DR AMBEDKAR ROAD
     BENGALURU 560001
     REP. BY ITS PRINCIPAL SECRETARY

2.   THE KARNATAKA SOAPS
     AND DETERGENTS LIMITED
     NO 27 INDUSTRIAL SUBRUB
     BENGALURU-PUNE HIGHWAY
     RAJAJINAGAR BENGALURU 560055
     REP. BY ITS MANAGING DIRECTOR
                                       ...RESPONDENTS

(BY SRI.SHAMANTH NAIK., HCGP FOR R1
    SRI. GANGADHAR R GURUMATH., SR. COUNSEL FOR
    SMT. MANJULA D., ADVOCATE FOR R2)

    THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
NOTICE INVITING TENDER PRODUCED AT ANNX-A IN SO
FAR AS IT RELATES TO CONDITIONS STIPULATED AT
SL.NO.6, 10, 11, 12, 13 AND 14 OF APPENDIX A AS IT
STOOD AMENDED BY 3 ADDENDUMS ISSUED ON
22.01.2025, 03.02.2025 AND 06.02.2025 AND ETC.

IN WP NO. 4146/2025

BETWEEN:

1.   M/S BANARI CONSTRUCTIONS
     A COMPANY REGISETERED UNDER
     THE PROVISIONS OF INDIAN
     PARTNERSHIP ACT 1932
     HAVING ITS OFFICE AT
                            -4-
                                        NC: 2025:KHC:7985
                                     WP No. 4144 of 2025
                                 C/W WP No. 4145 of 2025
                                     WP No. 4146 of 2025


     NO 4, GIRIDARSHINI LAYHOUT
     ALANAHALLI VILLAGE, T NARASIPURA ROAD
     MYSORE 570001
     REP. BY ITS MANAGING PARTNER
     SRI C RAJU GOWDA
     S/O LATE CHIKKMARI GOWDA
                                        ...PETITIONER

(BY SRI. JAYAKUMAR S PATIL., SR. COUNSEL FOR
    SRI. S KALYAN BASAVARAJ., ADVOCATE)

AND:

1.   STATE OF KARNATAKA
     DEPARTMENT OF INDUSTRIES
     AND COMMERCE, VIKAS SOUDHA,
     DR AMBEDKAR ROAD
     BENGALURU 560001
     REP. BY ITS PRINCIPAL SECRETARY

2.   THE KARNATAKA SOAPS AND
     DETERGENTS LIMITED
     NO 27, INDUSTRIAL SUBRUB
     BENGALURU PUNE HIGHWAY
     RAJAJINAGAR
     BENGALURU 560055
     REP. BY ITS MANAGING DIRECTOR
                                       ...RESPONDENTS

(BY SRI.SHAMANTH NAIK., HCGP FOR R1
    SRI. GANGADHAR R GURUMATH., SR. COUNSEL FOR
    SMT. MANJULA D., ADVOCATE FOR R2)

     THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
NOTICE INVITING TENDER PRODUCED AT ANNX-A IN SO
FAR AS IT RELATES TO CONDITIONS STIPULATED AT
                                  -5-
                                                  NC: 2025:KHC:7985
                                            WP No. 4144 of 2025
                                        C/W WP No. 4145 of 2025
                                            WP No. 4146 of 2025


SL.NO.6, 10, 11, 12, 13 AND 14 OF APPENDIX A AS IT
STOOD      AMENDED     BY    3   ADDENDUMS          ISSUED     ON
22.01.2025,    03.02.2025    AND       06.02.2025       AND   ALSO
CLAUSE 3.2 OF APPENDIX N PRODUCED AT ANNX-E, F AND
G BEARING NO. KSDL/2024-25 INDO 582 AND ETC.

      THESE    PETITIONS,      COMING      ON     FOR    PRELIMINARY
HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:



CORAM: HON'BLE MR JUSTICE R DEVDAS


                         ORAL ORDER

The petitioners in all these three writ petitions are common and therefore the writ petitions are clubbed, heard together and are being disposed of by this common order at the stage of admission itself.

2. Learned Senior Counsel Sri. Jayakumar.S.Patil, appearing for the petitioners would take this Court to the impugned tender more particularly to some of the conditions contained in the impugned tender. It is pointed out from clause-10 of the impugned tender that the tenderer should have supplied the quantity usually not less than 80% of the quantity in anyone of the last 3 years and 40% in respect of -6- NC: 2025:KHC:7985 WP No. 4144 of 2025 C/W WP No. 4145 of 2025 WP No. 4146 of 2025 MSE in any one of the last preceding 2 years; The tenderer must have supplied satisfactorily at least average 30% of the quantity similar to the type specified in the schedule of requirements in any one of the last 3 years. Most importantly, it is pointed out that a satisfactory performance letter for having fulfilled the quantities as per Appendix-M to be compulsory uploaded, otherwise bid will be rejected. Similarly in clause-11 it is provided that if the bidder has defaulted to the respondent KS & DL in past supplies, the bidder will not be considered and the bid will be rejected. This according to the learned Senior Counsel would be arbitrary and clearly directed against the petitioners who have earlier supplied to the respondent KS & DL. Learned Senior Counsel would submit that it is permissible for this Court to entertain such a writ petition, even if it is case of pre-bid tender.

3. Per contra learned Senior Counsel, Sri. Gangadhar R. Gurumath appearing for the respondent - KS & DL submits that the similar petitions were filed at the hands of some of the bidders including all the three by the writ petitioner herein in W.P. No.2400/2024. This Court considered similar grievances and held that what would unmistakably emerge from the law -7- NC: 2025:KHC:7985 WP No. 4144 of 2025 C/W WP No. 4145 of 2025 WP No. 4146 of 2025 elucidated in the judgments of the Hon'ble Apex Court is that this Court would not interfere in any contract/tender unless it is palpably or demonstrably arbitrary. It is on the touchstone of the aforesaid principles the facts in the case on hand are required to be considered. Having regard to similar conditions which were under challenge before this Court, it was held that it is un-understandable as to how this demand for quality can be termed to be arbitrary or wanting to suit particular tenders. Even if the petitioners are not eligible in terms of the tender conditions, it cannot be said that the tender conditions are bad. It was therefore held that a tenderer cannot seek the conditions of tender to suit their eligibility.

4. Having heard the learned Senior Counsels on both the sides and on perusing the petition papers, this Court finds that similar conditions imposed in the previous tender were already under challenge before this Court, at the hands of the petitioner. The only other conditions which did not find place in the previous tender is possibly that the bidder, if had supplied to the respondent KS & DL and if they are defaulted, they will not be eligible and that therefore their bids would be rejected. Another condition in similar vein is that a satisfactory certificate -8- NC: 2025:KHC:7985 WP No. 4144 of 2025 C/W WP No. 4145 of 2025 WP No. 4146 of 2025 had to be uploaded while receiving the same from the respondent- KS & DL. Although it is not explicitly stated by the learned Senior Counsel as to how this condition would come in the way of the petitioner, nevertheless, it is obvious, since the petitioners are suppliers to the respondent KS & DL and for some reason if the respondents have held that the petitioners are defaulters, then presumably no satisfactory certificate would be issued by the respondents to the petitioners. However, that by itself cannot be construed as a clause designed to keep away the petitioners. This Court finds that similar conditions have been imposed even in respect of any other PSU to whom the bidders would have supplied the material. It is found that such satisfactory certificate will have to be obtained by the bidder even if such material have been supplied to some other PSUs. Therefore it would be futile to content that the said condition has been imposed only to keep out the petitioners from the race.

5. Having regard to the law as found in the order of the Co-ordinate Bench considering the case of the petitioners earlier, interference at the hands of the Courts would be called -9- NC: 2025:KHC:7985 WP No. 4144 of 2025 C/W WP No. 4145 of 2025 WP No. 4146 of 2025 for only if the petitioners are able to demonstrate that the tender conditions are palpably or demonstrably arbitrary.

6. This Court does not see any such condition which can be held as arbitrary and designed to keep away certain bidders. In that view of the matter the writ petitions fail and are accordingly dismissed.

7. If the petitioner's technical bids have been rejected at the hands of the respondents, the petitioners are at liberty to question the same in accordance with law.

Sd/-

(R DEVDAS) JUDGE RKA