Karnataka High Court
Emri Green Health Services vs The State Of Karnataka on 23 October, 2024
Author: Hemant Chandangoudar
Bench: Hemant Chandangoudar
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NC: 2024:KHC:42660
WP No. 27840 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 23RD DAY OF OCTOBER, 2024
BEFORE
THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
WRIT PETITION NO. 27840 OF 2023 (GM-TEN)
BETWEEN:
EMRI GREEN HEALTH SERVICES
(A NON FOR PROFIT ORGANIZATION)
REGISTERED UNDER THE ANDHRA PRADESH,
SOCIETIES REGISTRATION ACT, 2001
AND HAVING ITS REGISTERED
OFFICE AT 15 -159,
PAIGAH HOUSE, SARDAR PATEL ROAD,
SECUNDERABAD-500003
TELANGANA STATE, INDIA
AUTHORISED BY HANUMANTHAPPA
OCCUPATION INCHARGE
HAVING ITS HEAD OFFICE AT
DEVAR YAMZAL,
MEDCHAL ROAD, SECUNDERABAD,
PINCODE NO. 500078
Digitally signed by B
K
TELANGANA STATE, INDIA.
MAHENDRAKUMAR ...PETITIONER
Location: HIGH
COURT OF (BY SRI K N PHANINDRA, SENIOR COUNSEL FOR
KARNATAKA
SRI BALARAJ A C, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA
REP BY ITS PRINCIPAL SECRETARY/
SECRETARY TO GOVERNMENT,
GOVERNMENT OF KARNATAKA
HEALTH AND FAMILY WELFARE DEPARTMENT
VIKAS SOUDHA,
BENGALURU-560001
2. THE DIRECTOR
DIRECTORATE OF HEALTH AND
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NC: 2024:KHC:42660
WP No. 27840 of 2023
FAMILY WELFARE SERVICES
ANAND RAO CIRCLE,
BENGALURU-560009.
3. MISSION DIRECTOR
NATIONAL HEALTH MISSION,
AGROGYA SOUDHA, 1ST FLOOR,
MAGADI ROAD,
BENGALURU-560023.
4. THE DEPUTY DIRECTOR (EMRI)
DIRECTORATE OF HEALTH AND
FAMILY WELFARE SERVICES
ANAND RAO CIRCLE,
BENGALURU-560009.
...RESPONDENTS
(BY SRI K SHASHI KIRAN SHETTY, AG A/W
SMT. ANUKANKSHA KALKERI, HCGP AND
SRI MOHAMMED JAFFAR SHAH, AGA FOR R1 TO R4)
THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED
ORDER BEARING NO.DD/EMRI/108-TENDER-CALL-2/43/2022-23 DT.
27/11/2023 PASSED BY R3 VIDE ANNEXURE-P AND ETC.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR
ORAL ORDER
Heard Sri K.N. Phanindra, learned Senior Counsel appearing on behalf of Sri A.C. Balaraj, learned counsel for the petitioner, and Sri K. Shashi Kiran Shetty, learned Advocate General, along with Smt. Anukanksha Kalkeri, learned HCGP, and Sri Mohammed Jaffar Shah, learned AGA for the respondents/State.
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2. Following the tender notification inviting bids for providing ambulance services in case of emergencies to the general public, the petitioner submitted a bid. The tender inviting authority accepted the technical bid of the petitioner. Subsequently, the scrutiny committee called upon the petitioner and two other bidders for a meeting on March 2, 2023. Thereafter, the debarment committee issued a notice dated June 3, 2023, calling upon the petitioner to appear before the committee to address the following allegations:
i. Failure to disclose a case registered in Lokayukta Karnataka against the State Head of the petitioner in terms of Annexure A-1 of the Tender, ii. Proposed appointment of Mr. Hanumanth RG as the Chief Operating Officer. It was alleged that the said officer does not meet the requisite criteria of having 15 years of experience in terms of Annexure 3(f) of the Tender; & iii. Proposed appointment of Mr. Kiran Pattar as the Fleet Head. The said officer was serving as the Fleet Coordinator from 20.05.2019 and had not managed 500 ambulances.-4-
NC: 2024:KHC:42660 WP No. 27840 of 2023
3. In response, the petitioner submitted a reply to the notice issued by the debarment committee and appeared before the committee.
4. Subsequently, the tender inviting authorities rejected the tender submitted by the petitioner. The debarment committee then recommended that the fourth respondent, the procurement entity, debar the petitioner from participating in future tender processes for a period of two years.
5. Following the order of the debarment committee, the bank guarantee submitted by the petitioner at the time of the bid submission was encashed by the tender inviting authority.
6. Following the notice issued by the debarment committee, the petitioner appeared and requested the committee to furnish the file notings of the procurement entity, which held that the petitioner had misrepresented information. However, the petitioner was not provided with the requested file notings and denied the allegations. Petitioner contends that if the allegations were accepted, they would not attract Section 14(A) of the Karnataka Transparency in Public Procurement Act, 1999.
7. It is acknowledged that the petitioner was not provided with the documents sought, nor was sufficient opportunity granted to defend against the allegations, as mandated under Rule 26(A)(3) of the Karnataka Transparency in Public Procurement Rules, 2020. Therefore, the recommendation made by the debarment committee -5- NC: 2024:KHC:42660 WP No. 27840 of 2023 is in violation of the principles of natural justice and lacks the requisite legal foundation, as it is not a speaking order.. Accordingly I pass the following:
ORDER
i) The petition is allowed.
ii) The impugned order dated 27.11.2023 passed by the third respondent at Annexure-B stand quashed.
iii) The debarment committee is at liberty to initiate proceedings afresh in accordance with law after providing reasonable opportunity of hearing to the petitioner;
iv) The encashment of bank guarantee is subject to the outcome of the proceedings to be initiated by the debarment committee;
v) It is made clear that in the event the debarment committee does not initiate proceedings within four weeks from the date of receipt of certified copy of this order, the bank guarantee furnished by the petitioner and the amount encashed thereunder by the tender inviting authority shall be refunded to the petitioner.
vi) All the contentions of the parties are kept open.-6-
NC: 2024:KHC:42660 WP No. 27840 of 2023 Pending applications, if any, does not survive for consideration.
Sd/-
(HEMANT CHANDANGOUDAR) JUDGE KMV List No.: 1 Sl No.: 13