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2025 DAILYLAW 53950 (KAR)

M/S L V TRADERS v. STATE OF KARNATAKA

WP/26330/2025 · 2025-09-08

B M Shyam Prasad

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 26330 OF 2025 (GM-TEN) C/W WRIT PETITION NO. 12156 OF 2025 (GM-TEN) IN WP No. 26330/2025 BETWEEN: M/S L V TRADERS HAVING ITS REGISTERED OFFICE AT JOSEPH NAGLAR, BEHIND CHURCH PROPRIETORSHIP WARD NO.12, SAGAR, SHVIAMOGGA 577401. REP.BY ITS PROPRIETOR SMT. KRISHNAVENI, W/O B PARSHURAM, AGED BAOUT 44 YEARS …PETITIONER (BY SRI. VIKRAM A HUILGOL, SENIOR ADVOCATE FOR SRI. SHIVAPRASAD SHANTANAGOUDAR.,ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 AND: 1. STATE OF KARNATAKA SOCIAL WELFARE DEPARTMENT, REP. BY ITS PRINCIPAL SECRETARY VIIKASA SOUDHA, SAMPANGI RAMA NAGAR, BENGALURU 560001. 2. EXECUTIVE DIRECTOR KARNATAKA RESIDENTIAL EDUCATIONLA INSTITUTIONS SOCIETY, BANGALORE NO.8, 6TH FLOOR, CUNNINGHAM ROAD, BENGALURU 560052. 3. DISTRICT COMMISSIONER SHIVAMOGGA DISTRICT, SIR M V ROAD, SHIVAMOGGA 577201. 4. BIJAPUR CENTRAL CO OP. WHOLESALE STORES LTD. NEAR NEHARU MG ROAD, VIJAYAPUR 586101 …RESPONDENTS (BY SRI.SHAMANTH NAIK., HCGP FOR R1 AND R3; SRI. D.L.N. RAO SENIOR ADVOCATE FOR SRI. SRINIVASA C., ADVOCATE FOR R2; SRI. SRINATH KULKARNI, ADVOCATE FOR R4) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING - 3 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 IMPUGNED ORDER DATED 22.08.2025 BEARING NO.E209061/KREIS/ADMN/FOOD/294/2024 ADMN- PART(4) (PRODUCED AS ANNX-K), ISSUED BY THE R2, AWARDING THE FOOD SUPPLY CONTRACT TO R3 BIJAPUR CENTRL CO-OPERATIVE WHOLESALE STORES LTD; DIRECTING THE RESPONDENT TO RECONSIDER THE FINANCIAL BID SUBMITTED BY THE PETITIONER, TREATING IT AS VALID BID, AND TO EVALUATE THE PETITIONERS ELIGIBILITY AND PERFORMANCE ON MERITS, IN ACCORDANCE WITH THE LAW. IN WP NO. 12156/2025 BETWEEN: M/S L V TRADERS HAVING ITS REGISTERED OFFICE AT JOSEPH NAGAR, BEHIND CHURCH PROPRIETORSHIP, WARD NO. 12, SAGAR, SHIVAMOGGA-577401 REP. BY ITS PROPRIETOR SMT. KRISHNAVENI, W/O B PARASHURAM AGED ABOUT 44 YEARS ...PETITIONER (BY SRI. VIKRAM A HUILGOL, SENIOR ADVOCATE FOR SRI. SHIVAPRASAD SHANTANAGOUDAR., ADVOCATE) - 4 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 AND: 1. THE STATE OF KARNATAKA SOCIAL WELFARE DEPARTMENT, REP. BY ITS PRINCIPAL SECRETARY, VIKASA SOUDHA, SAMPANGI RAMA NAGAR, BENGALURU- 560001. 2. EXECUTIVE DIRECTOR, KARNATAKA RESIDENTIAL EDUCATIONAL INSTITUTIONS SOCIETY, BANGALORE, NO. 8, 6TH FLOOR, CUNNINGHAM ROAD, BENGALURU-560052. 3. DISTRICT COMMISSIONER SHIVAMOGGA DISTRICT, SIR. M. V. ROAD, SHIVAMOGGA-577201. ...RESPONDENTS (BY SRI.SHAMANTH NAIK., HCGP FOR R1 AND R3; SRI. D.L.N. RAO, SENIOR ADVOCATE FOR SRI. SRINIVASA C., ADVOCATE FOR R2) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE ELIGIBILITY CRITERIA AT CLAUSE 2(2) AND TENDER CONDITION CLAUSE-3.7(iv) AND ACCOMPANYING NOTE IN TENDER NOTIFICATION BEARING NO. KERIS/2024- 25/IND0030/CALL-2 DATED 07.04.2025 ISSUED BY R-2 PRODUCED AT ANNX-B. - 5 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner is common in both these petitions. The petitioner, in the writ petition in W.P.No.12156/2025, has called in question the eligibility criteria in terms of the Tender Notification dated 07.04.2025 [Annexure-B], and in the writ petition in W.P.No.26330/2025, the petitioner has called in question the order of the Executive Director, Karnataka Residential Educational Institutions Society, Bengaluru dated 22.08.2025 [Annexure-K] who is arrayed as the second respondent in this petition. 2. This second respondent, by this impugned Order dated 22.08.2025, has assigned the supply of food grains and other items to the Government Residential Schools and Colleges in Shivamogga - 6 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 District to a private entity [the fourth respondent] and the second respondent has referred to the interim orders of this Court in the first writ petition [in W.P. No.12156/2025] as the reason for assigning the supply of food grains to the fourth respondent. The parties are referred to as they are arrayed in the second petition in W.P. No.26330/2025. 3. On 24.04.2025, this Court in the writ petition in W.P. No.12156/2025 has observed that the tender proceedings under the tender Notification dated 07.04.2025 for supply of food grains food grains and other items1 shall remain subject to the result of the petition and nothing more. In the writ petition in W.P. No.26330/2025, 01.09.2025, this Court has permitted the petitioner to supply food grains and other items until 04.09.2025 i.e., the next date of hearing. This Court, on 04.09.2025, upon 1 The food grains and other items to Government Residential Schools and Colleges in Shivamogga District. - 7 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 hearing the second respondent has directed the petitioner to supply food grains until this date as it was placed on record that the petitioner could not supply the food grains despite this Court’s earlier interim order. 4. This Court has recorded that there should be no impression that this Court's orders could be frustrated and therefore that arrangement must be2. On 04.09.2025, Sri C Srinivasa, the learned counsel for the second respondent, placed on record that the writ petition in W.P.No.12156/2025 is rendered infructuous because the second respondent has cancelled tender impugned in such petition. Sri.Vikram A Huilgol, the learned Senior Counsel for 2 ……. this Court is of the view that there should be no impression of frustrating this Court's order and if the petition is taken up for orders including final disposal, that impression will remain and therefore, the petition is directed to be re-listed on 08.09.2023 as part of the Fresh Matters List continuing the interim order to be effective from today till the next date of hearing on the same terms that are stipulated and clarifying that the petitioner shall not be entitled to perforce seek any extension.” - 8 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 the petitioner, cannot contest that the writ petition in W.P.No.12156/2025 is indeed rendered infructuous with Sri D L N Rao, the learned Senior Counsel for the second respondent, reiterating the decision. The writ petition in W.P.No.12156/2025 must be disposed of in the light of this turn of events, but this Court must also ensure, especially in the peculiarities of the case that are set forth in the next part of the order, that the second respondent, without any delay, must take all such measures as would be necessary to ensure that the tender is re-floated for supply of food grains. The procurement cannot be on ad hoc basis and the procurement must be in compliance with the provisions of the Karnataka Transparency in Public Procurement Act, 1999 [the Act]. 5. The disposal of the other writ petition in W.P. No.26330/2025 must turn on the arrangement that should be until the second respondent floats fresh tender and the Work Orders are issued. The - 9 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 question, in other words, would be whether the supply of the food grains and other items to Government Residential Schools and Colleges in Shivamogga District must be by the petitioner or by the fourth respondent. 6. Sri Vikram A Huilgol submits that the petitioner must be permitted to supply the food grains because the Circular dated 26.06.2025 stipulates that when the tender process is on, the previous supplier must supply the food grains at the rates notified earlier and that the second respondent's decision dated 22.08.2025 is not because of any justifiable reason. The learned Senior Counsel, responding to the case that the petitioner cannot be permitted to supply the food grains even in the interregnum, submits that: [i] the petitioner is issued with the show cause notice dated 24.07.2025 alleging that he has raised bills for - 10 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 supply of food grains to residential schools and colleges in Davanagere without actual supply; [ii] that the petitioner has caused the response dated 18.08.2025 but the second respondent is yet to take a decision, and [iii] that until such a decision is taken, the petitioner cannot be made to suffer a stigma resulting in denial of the right that flows from the Circular dated 26.06.2025. 7. 7. Sri D L N Rao submits that this Court's decision on the afore must be in the light of the indisputable fact that the petitioner had called in question the very terms of the tender in the earlier writ petitions in W.P. Nos.33834/2024 and connected matters, that these writ petitions are disposed of by this Court on 11.02.2025 and that the writ petition in - 11 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 W.P.No.12156/2025 is filed suppressing this material fact. The learned Senior Counsel submits that if the petitioner is granted any indulgence despite the suppression, which could be a misleading statement, there could be a premium on suppression. 8. Sri Srinath Kulkarni, the learned counsel for the fourth respondent, submits that this respondent has also been issued with indents during the period between 22.08.2025 and 31.08.2025; that this respondent has made all arrangements for supply of food grains and that the exclusion of this respondent at this stage would visit this respondent with serious financial repercussions. 9. These rival submissions present the canvas for the decision on the arrangement that should be for the supply of food grains to the concerned residential schools and colleges in the District of Shivamogga in the interregnum. This Court must also observe that the additional - 12 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 circumstance would be that the petitioner, acting upon the indents issued and this Court's interim order, has already supplied food grains to the concerned educational institutions for the month of September 2025 and that the fourth respondent has also successfully participated in the tenders for the supply of food grains in Bijapur District. 10. This Court must balance interests in view of the afore to ensure that the second respondent, who must examine all the circumstances, takes an appropriate decision at the earliest subject to the tender. This Court is of the view that if the petitioner has already supplied and the fourth respondent is keen, the second respondent must extend an opportunity to both to substantiate their cause and decide on the supply of the food grains for the months post September 2025 and subject to the earliest finalisation of the tender notification. - 13 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 11. This Court must next observe that the second respondent, and in fact every other person who could assert locus, must be at liberty in the event there is any litigation at the petitioner's instance, to point out antecedent circumstances which could be a factor that must be considered for grant of an equitable relief in exercise of this Court's jurisdiction under Article 226 of the Constitution of India. In the light of the afore,: ORDER [a] The writ petition in W.P. No.12156/2025 stands disposed of as having become infructuous but directing the second respondent to float the tender for supply of food grains and items to the concerned residential schools and colleges in Shivamogga within three weeks from today. [b] The writ petition in W.P.No.26330/2025 also stands disposed of directing the second respondent to extend opportunities to both the - 14 - HC-KAR NC: 2025:KHC:35067 WP No. 26330 of 2025 C/W WP No. 12156 of 2025 petitioner and the fourth respondent to decide on the arrangement for supply of food grains for the month of October 2025, if in the event, there is any delay in finalising the Work Orders consequent to the tender to be floated in terms of the earlier direction. [c] The petitioner shall not be entitled to claim any equity if there is any adverse orders by the second respondent on the supply of food grains for the month of October 2025 or if there is a delay in issuing work orders. Sd/- (B M SHYAM PRASAD) JUDGE AN/-