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2025 DAILYLAW 84724 (KAR)

M/S TRAVELS WORLD v. HUBLI ELECTRICITY SUPPLY COMPANY LIMITED HESCOM

WP/105345/2025 · 2025-08-01

Suraj Govindaraj

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC-D:9592 WP No. 105345 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 1ST DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 105345 OF 2025 (GM-RES) BETWEEN: M/S. TRAVELS WORLD NO.72/2, GROUND FLOOR, RAILWAY PARALLEL ROAD, KUMARA PART WEST, BENGALURU-560020, REPRESENTED BY ITS MANAGING PARTNER, SHRI SHARSCHANDRA SANIL. …PETITIONER (BY SRI. PRABHAKAR L. SHETTY, ADVOCATE) AND: HUBLI ELECTRICITY SUPPLY COMPANY LIMITED (HESCOM) REPRESENTED BY ITS SUPERINTENDING ENGINEER (ELECTRICITY), TENDERING AND PROCUREMENT, CORPORATE OFFICE, NAVANAGAR, HUBBALLI-580025. …RESPONDENT (BY SRI. B.S.KAMATE, ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A) ISSUE A WRIT IN THE NATURE OF CERTIORARI, OR ANY OTHER APPROPRIATE WRIT, ORDER, OR DIRECTION, QUASHING THE IMPUGNED ORDER OF FORFEITURE OF BANK GUARANTEES DATED. 17.07.2025 FOR RS. 36,69,500/- VIDE GUARANTEE NO. Digitally signed by GIRIJA A. BYAHATTI Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:9592 WP No. 105345 of 2025 250063BG000014 AND 36,43,000/- VIDE GUARANTEE NO. 250063BG000013 DATED 22.01.2025 ISSUED BY THE RESPONDENT VIDE BEARING NO. HESCOM/SEE (T AND P)/EE- (T AND P)/AEE-1/VEHICLE/2025-26/CYS-3646, VIDE ANNEXURE-A. B) ISSUE A WRIT IN THE NATURE OF MANDAMUS, OR ANY OTHER APPROPRIATE WRIT, ORDER, OR DIRECTION, DIRECTING THE RESPONDENT TO INSTRUCT THE KARNATAKA BANK LIMITED, NEHRU NAGAR BRANCH, BANGALORE TO RELEASE THE PERFORMANCE SECURITY FURNISHED BY THE PETITIONER IN THE FORM OF BANK GUARANTEE BEARING NO. 250063BG000014 DATED 22.01.2025, FOR AN AMOUNT OF 36,69,500/- (RUPEES THIRTY -SIX LAKH SIXTY NINE THOUSAND FIVE HUNDRED ONLY) AND HESCOM/SEE(T AND P)EE (T AND P)/AEE-1/VEHICLE/2025- 26/CYS-3646 RS 36,43,000/- (RUPEES THIRTY SIX LAKH FORTY THREE THOUSAND ONLY, IN FAVOUR OF THE PETITIONER. C) PASS SUCH OTHER AND FURTHER ORDERS OR DIRECTIONS AS THIS HON BLE COURT MAY DEEM FIT JUST, AND PROPER IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. Learned counsel Sri. B. S. Kamate, is directed to accept notice for the respondents. 2. The petitioner is before this Court seeking for the following reliefs: A) Issue a writ in the nature of certiorari, or any other appropriate writ, order, or direction, quashing the impugned order of forfeiture of bank guarantees dated. 17.07.2025 for Rs. 36,69,500/- Vide - 3 - HC-KAR NC: 2025:KHC-D:9592 WP No. 105345 of 2025 Guarantee No. 250063BG000014 and 36,43,000/- Vide Guarantee No. 250063BG000013 dated 22.01.2025 issued by the respondent Vide Bearing No. HESCOM/SEE (T and P)/Ee-(T and P)/AEE- 1/Vehicle/2025-26/CYS-3646, Vide Annexure-A. B) Issue a writ in the nature of mandamus, or any other appropriate writ, order, or direction, directing the respondent to instruct the Karnataka Bank Limited, Nehru Nagar Branch, Bangalore to release the performance security furnished by the petitioner in the form of Bank Guarantee Bearing No. 250063BG000014 dated 22.01.2025, for an amount of 36,69,500/- (rupees thirty -Six Lakh Sixty Nine Thousand Five Hundred Only) and HESCOM/SEE(T and P)EE (T and P)/AEE-1/Vehicle/2025-26/CYS- 3646 Rs 36,43,000/- (Rupees Thirty Six Lakh Forty Three Thousand Only, in favour of the petitioner. C) Pass such other and further orders or directions as this Hon’ble Court may deem fit just, and proper in the facts and circumstances of the case and in the interest of justice and equity. 3. The petitioner and the respondents had entered into a contract for providing travel services, in pursuance to the petitioner being declared a successful bidder for providing hired vehicle services for the commutation of officers of HESCOM, Hubballi and Belagavi Zones. 4. The agreement was entered into on 18.01.2025. A bank guarantee was submitted on 22.01.2025 for a sum of ₹36,69,500/-, and another bank guarantee was - 4 - HC-KAR NC: 2025:KHC-D:9592 WP No. 105345 of 2025 submitted for a sum of ₹36,43,000/-. A detailed work order having been issued on 28.01.2025, the work commenced from 01.02.2025. Vide letter dated 27.02.2025, the petitioner requested several modifications of the word order and subsequently, the same not being agreeable to the respondent, vide letter dated 29.04.2025, the petitioner withdrew the services under the aforesaid work order. 5. At this stage, the respondent having invoked the bank guarantees on account of withdrawal of the contract services, the petitioner is before this Court seeking for the aforesaid reliefs. 6. The arrangement between the petitioner and the respondent is purely contractual in nature. The petitioner himself having withdrawn the services within 3 months after commencing the services, the respondent was well within the rights to invoke the bank guarantees, which had been submitted for performance of the contractual services as agreed. Hence, I do not find any merit in the above petition. - 5 - HC-KAR NC: 2025:KHC-D:9592 WP No. 105345 of 2025 7. Petition stands dismissed. Sd/- (SURAJ GOVINDARAJ) JUDGE GAB CT:PA LIST NO.: 2 SL NO.: 2