- 1 - HC-KAR NC: 2025:KHC:47641 WP No. 27677 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 27677 OF 2025 (GM-TEN) BETWEEN: M/S. L.V. TRADERS HAVING ITS REGISTERED OFFICE AT JOSEPH NAGAR, BEHIND CHURCH PROPRIETORSHIP, WARD NO. 12, SAGAR, SHIVAMOGGA - 577 401, REP. BY ITS PROPRIETOR SMT. KRISHNAVENI W/O B. PARSHURAM AGED ABOUT 44 YEARS PROPRETORSHIP ACT 2013. …PETITIONER (BY SRI. SHIVAPRASAD SHANTANAGOUDAR, ADVOCATE) AND: 1. STATE OF KARNATAKA SOCIAL WELFARE DEPARTMENT REP. BY ITS PRINCIPAL SECRETARY, VIKASA SOUDHA, SAMPANGIRAMANAGAR, BENGALURU - 560 001. Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:47641 WP No. 27677 of 2025 2. EXECUTIVE DIRECTOR KARNATAKA RESIDENTIAL EDUCATIONAL INSTITUTIONS SOCIETY, BANGALORE NO. 8, 6TH FLOOR, CUNNINGHAM ROAD BENGALURU - 560 052. …RESPONDENTS (BY SRI. SRINIVASA C, ADVOCATE FOR R2; SMT. K.P. YASHODHA, AGA FOR R1) THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AND SETTING ASIDE THE IMPUGNED ORDER DATED 03.09.2025 PASSED BY THE R-2 AT ANNX-G INSOFAR AS THE PETITIONER IS CONCERNED AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. The petitioner is before this Court seeking for the following reliefs: "a. Issue writ in the nature of certiorari for quashing and setting aside the impugned order dated 03.09.2025 passed by the Respondent No.2 at Annexure-G, insofar as the Petitioner is concerned. - 3 - HC-KAR NC: 2025:KHC:47641 WP No. 27677 of 2025 b. Issue a writ in the nature of mandamus directing the Respondents to release the forfeited EMD amount of Rs.23,95,540/-. c. Issue a writ in the nature of mandamus directing the Respondents to allow the Petitioner to participate in future tenders. d. Pass such other order as it deems fit to grant in the circumstances of the case, to meet the ends of justice and equity." 2. A tender has been called for by the respondents for supply of food and vegetable items, both perishable and non-perishable, to residential schools and college students under Karnataka Residential Educational Institutions Society (KREIS) in Shivamogga District. The petitioner had participated in the said tender. However, the petitioner having quoted one paisa less than the minimum amount, the petitioner was debarred from participating in the re-tender. It is challenging the same, the petitioner is before this Court seeking for the aforesaid reliefs. 3. The submission of Shri Shivaprasad Shantangoudar, learned counsel for the petitioner is that by mistake the tender was quoted at one paisa less. Merely, because there is a quote by one paisa less should not result in the - 4 - HC-KAR NC: 2025:KHC:47641 WP No. 27677 of 2025 petitioner being debarred from participating in the re-tender and or the EMD being forfeited. 4. Shri Srinivasa learned counsel appearing for respondent No.2 relies upon clause 3.7 of the tender document to contend that the said condition is applicable to one and all and all the tenderers knowing fully well of the consequences of quoting lesser than the minimum price, having participated in the said tender would be bound by it and the said condition cannot be challenged after participating in the said tender. 5. Heard Shri Shivaprasad Shantangoudar, learned counsel for the petitioner, Shri Srinivasa, learned counsel for respondent No.2 and learned Additional Government Advocate for respondent No.1 and perused the material on record. 6. The short question that would arise for consideration is: Whether a tenderer could challenge a condition of the tender after participating in the said tender? - 5 - HC-KAR NC: 2025:KHC:47641 WP No. 27677 of 2025 7. Clause 3.7 of the invitation for tender is reproduced hereunder for easy reference: "3.7 Second Cover - Financial Bid i. Only commercial/financial offer shall be uploaded under "Item wise Bid Financial Offer shall be made in the prescribed format at e-procurement portal. ii. The end price quoted shall include GST, cost of package, transportation and delivery at destination, as applicable. The price quoted will be valid for 2 years tender period. iii. The Rice and Wheat will be supplied by Food Corporation of India (FCI) through PDS System; If there is any disruption in the supply of PDS Rice and Wheat, the same will be procured from the successful bidder with competitive/ relevant price decided by the Tender Scrutiny Committee (TSC) & Tender Accepting Committee (TAC). iv. The total bid value offered shall not exceed the estimated bid value or shall not be 10% below the estimated bid value, such offers will be summarily rejected at the financial stage of evaluation. NOTE: • For the calculation of 90% of the amount put to tender, consider Page No.3 table, SL.No.2 Amount put to tender. • The amount put to tender is Rs.23,95,54,029/-, the bidder should not quote the amount less than Rs.21,55,98,626.00/- (90% of the amount put to tender). - 6 - HC-KAR NC: 2025:KHC:47641 WP No. 27677 of 2025 • If the bidder quotes Rs.21,55,98,625.99/- the bid will be rejected at financial evaluation since the total amount is less than 90% of the estimated bid value. a) Even though KPPP Portal declares respective bidders as L1, the bid will be rejected and the tender is recalled for this district. b) If the bidders intentionally/ purposely/typo malifies the bid, in such cases • Earnest Money Deposit (EMD) will be forfeited. • The respective bidders are not allowed to participate in retender and will be rejected. • Should compulsory provide an undertaking in the form of an Affidavit as per Annexure-I and upload https://kppp.karnataka.gov.in. (Rs.100/- Stamp paper with duly notarized) (Consider this has a mandatory document for Technical Evaluation) v. The comparison of total amount quoted by bidders is based on the provisions of Karnataka Transparency in Public Procurement (KTPP) Act 1999 and Rules 2000." 8. In the note appended to clause 3.7, it has been categorically stated that the amount put to tender is Rs.23,95,54,029/- and the bidder should not quote an amount less than Rs.21,55,98,626/-. It has further made clear that if a bidder quotes Rs.21,55,98,625.99/-, the - 7 - HC-KAR NC: 2025:KHC:47641 WP No. 27677 of 2025 bid will be rejected at financial evaluations since the total amount is less than 90% of the estimated bid value. 9. The illustration/example which has been given in the said note is exactly what the petitioner has done inasmuch as the very one paisa less, which has been prohibited by the respondents has been quoted by the petitioner. 10. The term of the contract being clear and categorical, mandating that the respective bidders, who have quoted lesser than the minimum amount would not be allowed to participate in the re-tender and will be rejected would be binding on the petitioner inasmuch as once a tenderer has participated in tender knowing fully well of the conditions of the said tender is deemed to have accepted the conditions of the tender, and cannot challenge the same, subsequently on account of the bid of the tenderer being rejected. 11. One of the terms and conditions being that the EMD would be forfeited, the same would also be binding on the petitioner and the petitioner cannot claim any grievance as - 8 - HC-KAR NC: 2025:KHC:47641 WP No. 27677 of 2025 regard to said conditions having participated in the said matter. 12. No grounds being made out, the petition stands disposed of. SD/- (SURAJ GOVINDARAJ) JUDGE JY List No.: 1 Sl No.: 17