Karnataka High Court
Sri Krishna Traders vs The State Of Karnataka on 31 March, 2023
Author: Ravi V Hosmani
Bench: Ravi V Hosmani
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WP No. 57543 of 2018
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 31ST DAY OF MARCH, 2023
BEFORE
THE HON'BLE MR JUSTICE RAVI V HOSMANI
WRIT PETITION NO.57543 OF 2018 (GM-RES)
BETWEEN:
SRI. KRISHNA TRADERS,
NO.2, SEETHAIAH BUILDING,
1ST CROSS, GAJALADINNE MAIN ROAD,
2ND STAGE, BEML LAYOUT, KOLAR-563101.
REP. BY ITS PROPRIETOR,
SHRI. SUDHAKAR.
...PETITIONER
(BY SRI. PRAKASH T. HEBBAR, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA
REP. BY ADDL. CHEIF SECRETARY,
SOCIAL WELFARE DEPARTMENT,
M.S. BUILDINGS, DR.AMBEDKAR VEEDHI,
BENGALURU-560 001.
2. THE DEPUTY COMMISISONER,
KOLAR DISTRICT, KOLAR-563 101.
3. THE JOINT DIRECTOR,
Digitally signed by SOCIAL WELFARE DEPARTMENT,
GEETHAKUMARI
PARLATTAYA S KOLAR TALUK, KOLAR DISTRICT 563 101.
Location: High Court
of Karnataka 4. THE EXECUTIVE DIRECTOR,
KARNATAKA RESIDENTIAL EDUCATION
INSTITUTION ASSOCIATION,
BENGALURU-560 001.
5. THE DEPUTY DIRECTOR,
DEPARTMENT OF BACKWARD CLASSES,
NEAR RAILWAY STATION,
KOLAR TALUK, KOLAR DISTRICT-563101.
...RESPONDENTS
[BY SRI. V.SHIVA REDDY,HCGP FOR R1 TO R3 (PH);
SRI. VINAY G., ADVOCATE FOR R4 (PH)]
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WP No. 57543 of 2018
THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE
CONSTITUTION OF INDIA, PRAYING TO QUASH THE
ORDER/NOTIFICATION DATED 07.12.2018 PASSED BY THE R-2 AS
PER ANNEXURE-A TO ENABLE THE PETITIONER TO EFFECT
SUPPLIES FORTHWITH, GRANT AN INTERIM ORDER TO STAY OF
THE OPERATION OF THE ORDER/NOTIFICATION DATED 07.12.2018
PASSED BY THE R-2 VIDE ANNEXURE-A TO ENABLE THE
PETITIONER TO EFFECT SUPPLIES PURSUANT TO ANNEXURE-D.
THIS PETITION, COMING ON FOR FURTHER HEARING, THIS
DAY, THE COURT MADE THE FOLLOWING:
ORDER
Challenging order no.JamNi/SaKaYi/Ko/Aahara/CR/ 1/2017-18 dated 07.12.2018 passed by respondent no.2 as per Annexure-A etc., this writ petition is filed.
2. Sri. Prakash T. Hebbar, learned counsel for petitioner submitted that on 23.05.2015 respondent no.1 had issued tender notification (Annexure-B) inviting eligible candidates to participate in bid for District Level purchase of food items for Boarding Schools and Hostels coming under Social Welfare Department, Backward Classes Welfare Department, Backward Tribes Welfare Department, Morarji Desai Residential Schools and Kittur Rani Chennamma Residential Schools etc., for one year.
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3. It was submitted that in response to said notification, petitioner submitted his bid and was successful 'L1' bidder. Hence, tender agreement was signed with petitioner and he supplied food items as per requirement.
4. However, on ground that petitioner had not supplied food materials as per tender conditions and stopped supply, an order for blacklisting petitioner was passed. Said order was challenged by petitioner before this Court in W.P.No.9056/2018. This Court by order dated 12.06.2018 allowed writ petition on ground of failure to issue show cause notice prior to blacklisting, but reserving liberty to take action afresh.
5. Thereafter, on 28.06.2018, respondent no.2 - Deputy Commissioner issued show-cause notice to petitioner as per Annexure-Y1, as follows:
"f¯Áè¢üPÁjUÀ¼À PÁAiÀiÁð®AiÀÄ, PÉÆïÁgÀ f¯Éè, PÉÆïÁgÀ ¸ÀA:dA¤/¸ÀPÀE/PÉÆÃ/DºÁgÀ/¹Dgï-1/2017-18 ¢£ÁAPÀ: 28.06.2018 £ÉÆÃnÃ¸ï «µÀAiÀÄ: 2016-17£Éà ¸Á°£À°è ¸ÀªÀiÁd PÀ¯Áåt E¯ÁSÉ, »AzÀĽzÀ ªÀUÀðUÀ¼À PÀ¯Áåt E¯ÁSÉ, ¥Àj²µÀÖ ªÀUÀðUÀ¼À PÀ¯Áåt E¯ÁSÉAiÀÄr £ÀqÉAiÀÄÄwÛgÀĪÀ ªÉÄnæPï ¥ÀƪÀð ªÀÄvÀÄÛ ªÉÄnæPï £ÀAvÀgÀ «zÁåyð¤®AiÀÄUÀ½UÉ ªÀÄvÀÄÛ ªÀ¸Àw ±Á¯É ªÀÄvÀÄÛ ªÉÆgÁfð zÉøÁ¬Ä, QvÀÆÛgÀÄ gÁt ZÉ£ÀߪÀÄä ªÀ¸Àw ±Á¯É «zÁåyðUÀ½UÉ ºÁUÀÆ ¤gÁ²ævÀgÀ ¥ÀjºÁgÀ PÉÃAzÀæ ¤gÁ²ævÀjUÉ DºÁgÀ ¸ÁªÀiÁVæUÀ¼À ¸ÀgÀ§gÁdÄUÀ¼À£ÀÄß mÉAqÀgï ¤§AzsÀ£ÉUÀ½UÉ C£ÀÄUÀÄtªÁV ªÀiÁqÀzÉà EgÀĪÀ PÀÄjvÀÄ.-4- WP No. 57543 of 2018
G¯ÉèÃR: PÀbÉÃjAiÀÄ DzÉñÀ ¸ÀASÉå:f¸ÀPÀ/²PÀët/¹Dgï-5/2016-17 ¢£ÁAPÀ:
22.06.2016.
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ªÉÄîÌAqÀ zÁR¯ÉUÀ¼À£ÀÄß £ÉÆÃnøÀÄ ¹éÃPÀj¹zÀ ªÀÄÆgÀÄ ¢£ÀUÀ¼ÉƼÀUÁV PɼÀ ¸À»AiÀĪÀjUÉ vÀ®Ä¥ÀĪÀAvÉ ¸À°è¸ÀvÀPÀÌzÀÄÝ. ¤ÃªÀÅ mÉAqÀgï µÀgÀvÀÄÛ ªÀÄvÀÄÛ ¤§AzsÀ£ÉUÀ½UÉ C£ÀÄUÀÄtªÁV DºÁgÀ ¸ÁªÀÄVæUÀ¼À£ÀÄß ¸ÀgÀ§gÁdÄ ªÀiÁrgÀĪÀÅ¢®èªÉ0zÀÄ ¥ÀjUÀt¹ ¤ªÀÄä ¸ÀA¸ÉÜAiÀÄ£ÀÄß KPÉ PÀ¥ÀÄà¥ÀnÖUÉ -5- WP No. 57543 of 2018 ¸ÉÃj¸À¨ÁgÀzÀÄ JA§ÄzÀPÉÌ ¤ªÀÄä «ªÀgÀuÉAiÀÄ£ÀÄß ªÀÄvÀÄÛ ¸ÀªÀÄeÁ¬Ä¶AiÀÄ£ÀÄß ¸À°è¸ÀvÀPÌÀ zÄÀ Ý 'MAzÀÄ ªÉÃ¼É ¤UÀ¢üvÀ ¸ÀªÀÄAiÀÄPÉÌ ¤ªÀÄä «ªÀgÀuÉ ªÀÄvÀÄÛ ¸ÀªÀÄeÁ¬Ä¹¶AiÀÄ£ÀÄß ¸À°è¸ÀzÉà EzÀÝ ¥ÀPëÀzÀ°è ªÀÄÄA¢£À CUÀvÀå PÀæªÀĪÀ£ÀÄß vÉUÉzÀÄPÉƼÀ¯ÁUÀĪÀÅzÉAzÀÄ w½AiÀÄvÀPÀÌzÀÄÝ.
¸À»/- 5.7.18 f¯Áè¢üPÁjUÀ¼ÀÄ PÉÆïÁgÀ f¯Éè, PÉÆïÁgÀ EªÀjUÉ, Sri. Sudhakar, Proprietor, #2, 1st Cross, Seethaiah Building, Gajaladinne Main Road, 2nd stage, BEML, Layout, Kolar-563 101."
6. Above notice reveals that allegations against petitioner were non-supply of food commodities for one year and failure to follow tender terms and conditions seeking explanation within three days against proposed action.
7. On 04.08.2018, a reminder notice - Annexure-Y2, was issued, appending copy of earlier notice stating that it was refused. Petitioner was also issued with notice by respondent no.3 - Joint Director on 27.11.2018 - Annexure-Z, informing about two earlier notices and calling upon petitioner to furnish required documents before respondent no.2 on 30.11.2018.
8. Said notice was received on 29.11.2018, at 7.15 p.m. At same time, he was served with final notice dated 29.11.2018 - Annexure-Z1, informing about issuance of earlier three notices.
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9. After receipt, petitioner submitted documents available with him and stated that remaining documents were available with respondent - authorities. Thereafter, without consideration, respondent no.2 passed impugned order blacklisting petitioner.
10. It was submitted that earlier, allegations against petitioner were mainly about failure to supply food items till completion of subsequent tender process. But, in second show-cause notice dated 28.06.2018 (Annexure-Z1) petitioner was required to furnish original documents. It was stated that without considering explanation and verifying documents, impugned order passed by respondent calls for interference. It was submitted that first show cause notice at Annexure-Y1 calling upon petitioner to produce documents which were produced along with bid, indicated predetermined mindset without specific allegation.
11. Referring to decision of Hon'ble Supreme Court in case of M/s Erusian Equipment & Chemicals Ltd., vs. State of West Bengal and Another1, consequence of 1 1975 (1) SCC 70 -7- WP No. 57543 of 2018 blacklisting being severe, authorities are required to blacklist only in case of grave misfeasance and only after issuing show cause notice specifically pointing out allegations against tenderer.
12. On other hand, learned HCGP for respondents no.1 to 3 and 5 and Sri. Nagaiah, learned counsel for respondent no.4 sought to justify impugned order. It was submitted that in Annexure-Y1 - notice, it was mentioned that due to stoppage of supply of food items prior to completion of tender period petitioner was called to furnish original documents.
13. As petitioner failed to comply and documents furnished were found to be duplicate and on further ground that Joint Director, Social Welfare Department had obtained from internet, details about business transactions of petitioner for years 2013-14, 2014-15, 2015-16 which was 'nil', impugned order was passed. Therefore, same was justified.
14. Heard, learned counsel and perused writ petition records.
15. From above submissions, it is not in dispute that petitioner was L1 bidder in response to tender notification at -8- WP No. 57543 of 2018 Annexure - B issued by Deputy Commissioner, Kolar for supply of food items. As per Annexures - G, G1 to G3, petitioner supplied food items for tender period. Annexure - G1 dated 15.12.2017, specifically states that petitioner had made supplies satisfactorily from July, 2016 to September, 2017.
16. On careful perusal of earlier order of blacklisting passed on 18.01.2018 at Annexure-L, it is seen that allegations against petitioner was stoppage of supply of food items prior to completion of tender period. Admittedly by then, tender period as per notification (Annexure-B) had expired. Certificate at Annexure-G1 issued by Deputy Commissioner, Kolar, on 15.12.2017 about a month earlier to passing order of blacklisting had not found any violation.
17. To a query about completion of subsequent tender process, learned HCGP submitted that tender for supply of food commodities for 2017-2018 was completed on 28.09.2017 / 03.10.2017.
18. Above would clearly indicate that author of Annexure-G1 namely, Deputy Commissioner nor Joint Director and Taluk Extension Officer authors of certificates at -9- WP No. 57543 of 2018 Annexures-G, G2 and G3 had certified satisfactory performance of tender conditions by petitioner.
19. Other reasons stated for blacklisting in Annexure-A were failure to furnish all original documents and reporting 'nil' transactions during previous financial years as reported to Commercial Tax Department.
20. Firstly, reasons mentioned in show-cause notice and earlier orders differ from impugned order. Secondly, it is seen that in none of notices, petitioner was called upon to show- cause about 'nil' returns furnished to Commercial Tax Department. Hence impugned order would be unsustainable on that count alone.
21. Further, on careful perusal of contents of notice at Annesxure-Y1, it is seen that 'after' completion of one year period, petitioner was called upon to furnish all original documents/certificates.
22. And as subsequent tender process was completed on 28.09.2017, certificate at Annexure-G1 issued by Deputy Commissioner about petitioner successfully performing tender condition for period from July 2016 to September 2017 itself
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WP No. 57543 of 2018would belie all allegations against petitioner. Fact that said certificate was issued in on 15.12.2017 would smack of bias, calling for interference and for imposing costs against respondents.
23. For aforesaid reasons following:
ORDER Writ petition is allowed.
Impugned order dated 07.12.2018, passed by respondent no.2 in case no. JamNi/SaKaYi/Ko/Aahara/ CR/1/2017-18 as per Annexure-A, is quashed.
It is clarified that henceforth petitioner would be entitled to participate in future tender processes.
Costs made easy, but not without issuing caution to respondents.
Sd/-
JUDGE Psg*