Karnataka High Court
Sri Hanuman Enterprises vs State Of Karnataka on 6 January, 2023
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
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WP No. 24305 of 2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF JANUARY, 2023
BEFORE
THE HON'BLE MR JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 24305 OF 2022 (GM-TEN)
BETWEEN:
1. SRI. HANUMAN ENTERPRISES,
REPRESENTED BY ITS PROPRIETOR,
SRI. RAJA,
S/O LATE NINGAPPA,
AGED 41 YEARS,
FOREST CONTRCTOR,
NO.2007, 5TH CROSS
'K' BLOCK, KUVEMPUNAGARA,
MYSURU - 570 023.
REG. UNDER COMPANY ACT - 1956.
...PETITIONER
(BY SRI. MITHUN G A., ADVOCATE)
AND:
Digitally signed by 1. STATE OF KARNATAKA,
PADMAVATHI B K
ADDL. CHIEF SECRETARY TO
Location: HIGH
COURT OF THE FOREST ECOLOGY AND
KARNATAKA
ENVIRONMENT DEPARTMENT,
4TH FLOOR, M.S.BUILDING,
BENGALURU - 560 001.
2. DEPUTY CONSERVATOR OF FORESTS AND
TECHINICAL ASSET TO
CONSERVATOR OF FOREST,
GOVERNMENT OF KARNATAKA,
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WP No. 24305 of 2022
WORKING PLAN,
ARANAY BHAVANA,
ASHOKPURAM,
MYSURU - 570 008.
3. ADDL. PRL. CHIEF FOERST CONSERVATOR,
(TENDER APPELLATE AUTHORITY),
WORKING PLAN, ARANYA BHAVAN,
MALLESHWARAM,
BENGALURU - 560 055.
...RESPONDENTS
(BY SRI.M.VINOD KUMAR, AGA)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
OFFICIAL MEMORANDUM DATED 17.10.2022 BEARING
NO.A2/BUD/KFDF/E-TENDER/CR-5/2022-23 ISSUED BY R2
VIDE ANNEXURE - A AND CONSEQUENTLY QUASH OR DIRECT
THE R2 TO WITHDRAW THE FRESH E-TENDER ISSUED BY R2 E-
PROCUREMENT NO.10/2022-23 ON 08.11.2022
BEARING NO.A2/BUD/WORKING PLAN/E-TENDER/CR-4/2022-
23 SUBSEQUENT TO WITHDRAWAL OF THE WORK ORDERS OF
PETITIONER VIDE ANNEXURE - F AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The petitioner is before this Court calling in question an Official Memorandum dated 17.10.2022, in terms of which, a fresh Tender Notification is issued for the very contract that was already awarded to the petitioner, pursuant to an earlier tender notification.
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2. Heard Sri Mithun G.A., learned counsel appearing for the petitioner and Sri. Vinod Kumar M., learned AGA appearing for the respondent.
3. Sans details, facts in brief, are as follows:
On 22.06.2022, a Tender Notification comes to be issued by respondent No.2 for survey of forest land and demarcation boundaries, at Male Mahadeshwara Wildlife. The petitioner submits his tender and emerges to be the successful bidder. After the Tender Scrutiny Committee scrutinizes the documents submitted by the petitioner, the declaration comes about on 03.08.2022. The work order was issued pursuant to the decision of the Tender Scrutiny Committee in six of such works to allot them to the petitioner on 07.10.2022.
4. The petitioner in terms of the contract awarded began to execute the work that was allotted to him with effect from 07-10-2022. After about 10 days of allotment of work, an order was passed on 17-10-2022 cancelling the work order so issued to the petitioner, in all the aforesaid six tenders. The act of the respondents did not stop at cancelling the tenders, but -4- WP No. 24305 of 2022 on 08-11-2022, issued a fresh tender notification for the same work that was allotted to the petitioner earlier. It is this action of the respondents that drives the petitioner to this court in the subject petition.
5. The learned counsel appearing for the petitioner would contend that the tender cancellation comes about even without issuance of notice to the petitioner and is therefore in violation of the principles of natural. He would contend that Clause 2.16 of the tender document could not have been invoked without at the outset issuing a notice to the petitioner.
He would seek to quash the issuance of a fresh tender notification and the order cancelling the tender that was awarded to the petitioner.
6. On the other hand, the learned AGA would seek to refute the submissions to contend that no notice need be issued to the petitioner, as it is invoking Clause 2.16 of the tender that the tender comes to be cancelled. He would seek dismissal of the petition contending that the petitioner has misrepresented while submitting tender documents. -5- WP No. 24305 of 2022
7. I have given my anxious consideration to the respective submissions made by the learned counsel and have perused the material on record.
8. The afore-narrated facts of issuance of a Tender Notification is not in dispute. The Tender Scrutiny Committee scrutinizing the tender is also not in dispute. The work order is issued by the competent authority after the recommendation of the Tender Scrutiny Committee for six such works on 07.10.2022. These facts are borne out of records. After the issuance of the work order to the petitioner, contract is also executed in favour of the petitioner. Work was for the purpose of demarcation and protection of forest and consolidation of boundaries of forest land in 139 major works, out of which six works forms the subject matter of the present petition.
9. The petitioner, pursuant to the execution of contract began to perform his work.
10. Thing standing thus, an official memorandum comes to be issued on 17-10-2022, by the second respondent cancelling the contract that was awarded to the petitioner. This -6- WP No. 24305 of 2022 official memorandum comes to the petitioner as a bolt from the blue, as it was issued, without issuance of any notice to the petitioner. Therefore the official memorandum of cancellation of contract is issued in violation of the principles of natural justice. The submission of the learned AGA that no notice need be issued is unacceptable. The submission would have been acceptable, if no work order was issued to the petitioner or no contract had been executed in favour of the petitioner, the petitioner was issued work order on 07-10-2022, pursuant to which the petitioner began executing his work. 10 days after such execution, the order of cancellation is passed .
11. The order of cancellation undoubtedly results in economic and civil consequences. It is trite law that any order that would result in economic or civil consequences cannot be issued except in compliance with the principles of natural justice. If there were allegations against the petitioner of misrepresentation while submitting the tender documents, a notice ought to have been issued to the petitioner seeking to show cause as to why the tender should not be cancelled on the basis of misrepresentations of the petitioner. A unilateral -7- WP No. 24305 of 2022 decision of cancellation of contract after its execution cannot but be held to be unsustainable for want of principles of natural justice. On the solitary ground, I deem it appropriate to read down the order of cancellation of contract dated 17-10-2022 , to be a show cause notice, directing the petitioner to submit his reply, to the said show cause notice. The respondents will consider the reply and pass appropriate orders in accordance with law and take all further proceedings to its logical conclusion.
12. In the light of no notice being issued, I deem it appropriate to re-term the Official Memorandum dated 17.10.2022 as a Show Cause Notice to the petitioner and direct the petitioner to submit his reply to the said Show Cause Notice and then, appropriate action be taken by the respondents.
13. For the aforesaid reasons, the following:
ORDER i. Writ petition is allowed-in-part.
ii. The order dated 17.10.2022 is read down as a Show Cause Notice.-8-
WP No. 24305 of 2022 iii. The petitioner is permitted to reply to the said order dated 17.10.2022 which is now read as a Show Cause Notice, within two weeks from the date of receipt of a copy of this order and the respondents shall pass appropriate orders within one week, thereafter.
All subsequent action would remain subject to the orders that would be passed by the competent Authority.
The work order that is issued pursuant to the re-tender would also be subject to the orders that would be passed by the competent Authority as directed by this Court.
Till such time, no precipitative action shall be taken in terms of the Tender Notification dated 08.11.2022.
Sd/-
JUDGE SJK List No.: 1 Sl No.: 6