M/S SHIVA STRUCTURES PVT LTD v. THE STATE OF KARNATAKA
WP/15609/2025 · 2025-08-19
Ravi V Hosmani
body2025
DailyLaw.ai
[ 2025 DAILYLAW 80148 (KAR) · dailylaw.ai ]
DailyLaw.ai
[ 2025 DAILYLAW 80148 (KAR) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2025:KHC:32095 WP No. 15609 of 2025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE RAVI V HOSMANI WRIT PETITION NO. 15609 OF 2025 (GM-KEB) BETWEEN:
M/s. SHIVA STRUCTURES PVT LTD., A PRIVATE LIMITED COMPANY, REP BY AUTHORISED SIGNATORY ABHIJITH, HAVING OFFICE AT NO. 331, E SECTOR, NEAR SHRI JAGRUT HANUMAN MANDIR, N-1, CIDCO, CHATRAPATI SAMBHAJNAGAR, MAHARASHTRA - 431 003. …PETITIONER [BY SRI SHOWRI H R., ADVOCATE (PH)] AND:
1.
THE STATE OF KARNATAKA, DEPARTMENT OF ENERGY, REP BY ITS CHIEF SECRETARY, VIKAS SOUDHA, BENGALURU - 560 001.
2.
THE KARNATAKA POWER CORPORATION LTD., REP BY THE DIRECTOR, NO.82, SHAKTHI BHAVAN, RACE COURSE ROAD, BENGALURU - 560 001.
3.
THE KARNATAKA POWER CORPORATION LTD., REP BY THE EXECUTIVE ENGINEER (CIVIL), KARGAL, SAGARA, SHIVAMOGGA 577 421. …RESPONDENTS [BY SMT. VAHEEDA, AGA FOR R1;
SRI KIRAN KUMAR V. SAMBRANI, ADV. FOR R2 & R3 (PH)]
THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED
ORDER BEARING NO.EECK/ DEBARMENT NOTICE/861 DATED 17.12.2024 PASSED BY THE RESPONDENT NO.3 DEBARRING THE PETITIONER COMPANY AT ANNEXURE -A.
THIS PETITION, COMING ON FOR HEARING ON I.A., THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM:
HON'BLE MR. JUSTICE RAVI V HOSMANI
Digitally signed by GEETHAKUMARI PARLATTAYA S Location: High Court of Karnataka
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HC-KAR NC: 2025:KHC:32095 WP No. 15609 of 2025
ORAL ORDER
Challenging
order bearing no.EECK/Debarment Notice/861 dated 17.12.2024 passed by respondent no.3 at Annexure-A, this writ petition is filed. 2. Sri Showri H.R., learned counsel for petitioner submitted that petitioner is a Private Limited Company registered under Companies Act, 2013, carrying on business as a promoters, builders, contractors, construction and maintenance of all types of buildings and special township projects/developmental works. It was submitted, respondent no.3 had invited tenders for work of "Shotcreting to U/s face, Deep pointing to D/s face and Drilling and grouting to Reach-1 from Ch: 150 to1100' of Linganamakki Dam" and "Shotcreting to U/s face, Deep pointing to D/s face and Drilling and grouting to Reach-II from Ch: 3130' to 4500' of Linganamakki Dam" vide NIT No.KPCL/2022-23/DA/WORK INDENT 13439 Dtd:
08/02/2023 & NIT No.KPCL/2022-23/DA/WORK INDENT 13438 Dtd:08.02.2023. 3. It was submitted in pursuance of same, petitioner had submitted bid and was declared as L1 bidder. At time of submission of bid, petitioner had submitted Joint Venture
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HC-KAR NC: 2025:KHC:32095 WP No. 15609 of 2025
Agreement ('JVA', for short) with M/s. Pioneer Foundation Engineers Private Limited ('PFEPL', for short) in order to demonstrate experience. It was submitted, respondent no.3 had earlier invited tenders in respect of same work in year 2020 and 2022. While applying for said tender, petitioner had also produced JVA with PFEPL, but due to oversight a different version of JVA was uploaded. On ground that there was discrepancy in JVA submitted earlier and JVA submitted in year 2023, respondent no.3 had issued a notice to petitioner seeking clarification. Petitioner had submitted detailed reply as per Annexure-D.
4. It was submitted, despite clarification, petitioner was issued with show cause notice dated 15.03.2024 as per Annexure-E proposing debarment/black listing. Even to same, petitioner submitted reply on 30.03.2024 as per Annexure-F. Without considering reply, respondent no.3 proceeded to pass impugned order at Annexure-A under Section 14A of Karnataka Transparency in Public Procurements Act, 1999, ('Act', for short) debarring petitioner from participating in future tenders for period of three years from date of order. Aggrieved thereby, this writ petition is filed. - 4 -
HC-KAR NC: 2025:KHC:32095 WP No. 15609 of 2025
5.
Main ground urged by learned counsel for petitioner was that Hon'ble Supreme Court in case of Kulja Industries Limited v. Chief General Manager, Western Telecom Project Bharat Sanchar Nigam Limited and Others, reported in (2014) 14 SCC 731, had elaborated principles governing blacklisting and which were referred to by this Court in W.P.no.35902/2024 disposed of on 17.04.2025 highlighting need for fair play and opportunity prior to blacklisting. Relying upon same, it was submitted that impugned order was liable to be quashed on ground of violation of principles of natural justice. 6. On other hand, Smt.Vaheeda, learned Additional Government Advocate for respondent no.1 and Sri Kiran Kumar V. Sambrani, learned counsel for respondents no.2 and 3 opposed writ petition. 7.
Learned counsel for respondents no.2 and 3 submitted that upon issuing notice at Annexure-E, petitioner had submitted its reply as per Annexure-F. Perusal of Annexure-F would reveal that petitioner admitted discrepancy insofar as JVA with PFEPL dated 23.11.2016. While JVA submitted in tenders of year 2020 and 2022 indicated sharing
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HC-KAR NC: 2025:KHC:32095 WP No. 15609 of 2025
ratio at 80% by petitioner and 20% by PFEPL, while JVA uploaded in pursuance of tender notification of year 2023 shared ratio to be at 60:40, indicating that petitioner had submitted tampered documents while submitting bid. It was submitted, action taken by respondents was strictly as per Rule 26A of Karnataka Transparency in Public Procurements Rules, 2000, ('Rules', for short) read with Section 14 of Act. Therefore, no interference was warranted.
8. Heard, learned counsel and perused writ petition.
9. From above, petitioner’s challenge against order of debarment at Annexure-A is principally on ground of violation of principles of natural justice. Rule 26A (3) of Rules, specifically provides for reasonable opportunity including oral hearing to concerned for making representations against proposed action to be given by Debarment Committee. Apparently impugned order at Annexure-A does not indicate compliance with said requirement. On said ground alone, impugned order at Annexure-A passed by tender authority requires to be set-aside. Hence, following:
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HC-KAR NC: 2025:KHC:32095 WP No. 15609 of 2025
ORDER
i. Writ petition is allowed.
ii. Impugned
order bearing no.EECK/Debarment Notice/861 dated 17.12.2024 at Annexure-A is quashed.
iii. Matter stands remitted back to Debarment Committee to afford opportunity of personal hearing to petitioner before recommending for further action, if so required.
iv. To enable early conclusion, it is ordered that Debarment Committee shall give intimation about date of personal hearing to petitioner within a period of 15 days from today.
Sd/- (RAVI V HOSMANI) JUDGE
GRD List No.: 1 Sl No.: 14