M/S BETALA ASSOCIATES v. KARNATAKA POWER CORPORATION LIMITED
WP/3293/2020 · 2025-12-01
E S Indiresh
body2025
DailyLaw.ai
[ 2025 DAILYLAW 73344 (KAR) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 73344 (KAR) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2025:KHC:49773 WP NO.3293 OF 2020
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 01ST DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE E.S. INDIRESH WRIT PETITION NO.3293 OF 2020 (GM-TEN) BETWEEN:
M/S BETALA ASSOCIATES NO.85, 2ND STAGE, 2ND PHASE, MAHALAKSHMIPURAM, WEST OF CHORD ROAD, BENGALURU - 560 086.
REP. BY ITS AUTHORIZED SIGNATORY M.G. BETALA. …PETITIONER (BY SRI. B.M. HALA SWAMY, ADVOCATE) AND:
1.
KARNATAKA POWER CORPORATION LIMITED SHAKTI BHAVAN, NO.82, RACE COURSE ROAD, BENGALURU - 560 001.
REP. BY ITS MANAGING DIRECTOR.
2.
THE CHIEF ENGINEER (CIVIL) SHARAVATHI KARNATAKA POWER CORPORATION LTD., KARGAL, SAGAR TALUK, SHIVAMOGGA DISTRICT - 577 401.
3.
THE EXECUTIVE ENGINEER (CIVIL) JOG KARNATAKA POWER CORPORATION LTD., JOGFALLS, SAGAR TALUK, SHIVAMOGA DISTRICT - 577 435
4.
ASSISTANT GENERAL MANGER (FINANCE) KARNATAKA POWER CORPORATION LTD., JOG FALLS, SAGAR TALUK, SHIVAMOGGA DISTRICT - 577 435.
Digitally signed by ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA
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5.
STATE BANK OF INDIA MADHAVANAGAR BRANCH, NO.32/1 AND 2, CRESENT TOWERS, CRESENT ROAD, BENGALURU - 560 001.
REP. BY ITS MANAGER. …RESPONDENTS (BY SRI. AKHILESHA BHAT M., ADVOCATE FOR SRI. PRADYUMNA L.N., ADVOCATE FOR R1 TO R4;
RESPONDENT NO.5 - SERVED)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO SET- ASIDE THE LETTER DATED 03RD DECEMBER, 2018, RESCIDING THE CONTRACT BY THE RESPONDENT NO.2 VIDE ANNEXURE-J;
SET-ASIDE THE NOTICE DATED 11TH DECEMBER, 2019 ISSUED BY THE RESPONDENT NO.3 VIDE ANNEXURE-Q; DIRECT THE RESPONDENTS TO PERMIT THE PETITIONER TO COMPLETE THE WORK AWARDED UNDER LETTER OF AWARD DATED 31ST JANUARY, 2017 VIDE ANNEXURE-A; AND ETC.
THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE E.S. INDIRESH
ORAL ORDER
In this petition, the petitioner is challenging the letter dated 03rd December 2018 (Annexure-J) issued by the respondent No.2 and Notice dated 11th December, 2019
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(Annexure-Q) issued by the respondent No.3; inter alia sought for direction to the respondents to permit the petitioner to complete the work awarded under Letter of Award dated 31st January, 2017 (Annexure-A).
2. The relevant facts for adjudication of this writ petition are that the petitioner is a Class-1 Contractor specilised in Civil Works and water proof treatment to the buildings and industries. The respondent No.1-Corporation had floated e-tender for providing water proof treatment to the roof including expansion joints of SGS Power House Building at Jog. The value of the Tender was fixed at Rs.1,10,37,138/- and the petitioner was successful bidder with a bid of Rs.1,07,01,411/-. Thereafter, the negotiation was held between the petitioner and the respondent-Corporation for an amount of Rs.1,06,56,858.95 and in furtherance of the same, Letter of Award dated 31st January, 2017 (Annexure-A) was issued to the petitioner.
3. It is further stated in the petition that the scope of the work under the Tender Notification was to provide water proof treatment to the roof and also expansion joints of the
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Power House building at Jog as per Annexure-B. It is the case of the petitioner that the petitioner had mobilised men and material to the Site and had furnished the program chart on 26th March, 2017 to the respondent No.1-Corporation and had substantially completed the work. However, the respondent No.1-Corporation, as per the impugned letter dated 03rd December, 2018 (Annexure-J) terminated/rescinded the contractual obligation with the petitioner on the ground that the petitioner has not fulfilled the contract agreement particularly the Section 4.03 and 4.04.. Being aggrieved by the same, the petitioner presented this writ petition.
4. Heard Sri. B.M. Halaswamy,
learned counsel appearing for the petitioner and Sri. Akhilesha Bhat M., learned counsel on behalf of Sri. Pradyumna L.N., appearing for respondents 1 to 4. 5. Sri. B.M. Halaswamy, learned counsel appearing for the petitioner, by referring to the relevant condition under the Letter of Award dated 31st January, 2017 (Annexure-A) issued by the respondent-Corporation for providing water proof treatment to the roof including expansion joints of SGS Power
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House building at Jog, contended that the respondent- Corporation had illegally rescinded the contract by issuing a letter dated 03rd December, 2018 (Annexure-J) on the ground of delay in execution of work. Learned counsel appearing for the petitioner further contended that, certain additional works have been entrusted to the petitioner and in this regard, the petitioner was called upon for attending the meeting to be held on 14th March, 2019 as per letter dated 09th March, 2019. It is argued by learned counsel appearing for the petitioner that the petitioner had substantially completed the work to an extent of more than 70%, however, the respondent-Corporation is not acting in consonance with the Letter of Award dated 31st January, 2017 (Annexure-A) by releasing the amount due to the petitioner including releases of the Earnest Money Deposit made by the petitioner. Accordingly, he sought for interference of this Court. 6. Per contra, Sri. Akhilesha Bhat M., learned counsel appearing for respondents 1 to 4 submitted that the petitioner has not completed the work as required to be made as per the letter of Award dated 31st January, 2017 (Annexure-A) issued
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by the respondent-Corporation. Accordingly, he sought to justify the impugned letter dated 03rd December, 2018 (Annexure-J) issued by the respondent-Corporation. 7. In the light of submission made by learned counsel appearing for the parties, there is no dispute with regard to allotment of work to the petitioner as per Letter of Award dated 31st January, 2017 (Annexure-A) in terms of the e-Tender by the respondent-Corporation. On perusal of the Letter of Award dated 31st January, 2017 (Annexure-A), the same would indicate that, as per the Tender Notification, the petitioner is required to provide water proof treatment to the roof including expansion joints of SGS Power House Building at Jog.
On careful examination of the impugned letter dated 03rd December, 2018 (Annexure-J), the same would indicate that the respondent-Corporation alleged that, there is a delay in execution of work and intermittent stoppage of work for several times without following the standard practice/methodology by the petitioner. 8. In that view of the matter, as the learned counsel appearing for the petitioner contended that the petitioner has
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completed the work to an extent of more than 70% awarded as per Letter of Award dated 31st January, 2017 (Annexure-A), however, the same was denied by learned counsel appearing for the respondent-Corporation by contending that the petitioner has not completed the work even to an extent of 50% awarded, I am of the view that, no interference be called for in this petition since the disputed facts are required to be adjudicated before the competent Civil Court. Therefore, taking into consideration the factual aspects on record, I am of the considered opinion that the writ petition is not maintainable to adjudicate the claim made by the petitioner including refund of the Earnest Money Deposit made by the petitioner. Accordingly, the petitioner is relegated to approach the competent Civil Court for resolution of the dispute. 9. In the event, if the petitioner approaches the competent Civil Court within two months from the date of receipt of this order, the petitioner is entitled for benefit of Section 14 of the Limitation Act from the date of filing of the present petition i.e., on 20th June, 2020 till the filing of suit before the Civil Court. It is also made clear that, all the
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contentions of the parties are kept open to be urged before the competent Civil Court.
Accordingly, writ petition is dismissed.
Sd/- (E.S. INDIRESH) JUDGE
ARK List No.: 1 Sl No.: 20