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2026 DAILYLAW 9820 (KAR)

M/S BEERENDRA TRADING CORPORATION v. STATE OF KARNATAKA

WP/16862/2023 · 2026-02-18

M G S Kamal

Public Interest Litigationbody2026

Judgment text

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- 1 - HC-KAR NC: 2026:KHC:9843 WP No. 16862 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 16862 OF 2023 (GM-RES) BETWEEN: M/S BEERENDRA TRADING CORPORATION NO.419, 1ST MAIN ROAD, 2ND CROSS, TALAKAVERI BADAVANE, AMRUTHAHALLI MAIN ROAD, BENGALURU - 560 092. REG. UNDER SALE TAX ACT REP. BY ITS SOLE PROPRIETOR CHIKKANNA, AGED ABOUT 63 YEARS, S/O. LATE KARGEGOWDA …PETITIONER (BY SRI. PRABHUGOUDA B. TUMBIGI, ADVOCATE) AND: 1. STATE OF KARNATAKA BY ITS PRINCIPAL SECRETARY, SOCIAL WELFARE DEPARTMENT, II FLOOR, VIDHAN SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU - 560 001. 2. THE EXECUTIVE OFFICER KARNATAKA RESIDENTAL EDUCATION SOCIETY, CUNNIGNHAM ROAD, BENGALURU - 560 001 3. THE DEPUTY DIRECTOR SOCIAL WELFARE DEPARTMENT, DR. B.R.AMBEDKAR, Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:9843 WP No. 16862 of 2023 HASSAN TOWN, HASSAN DISTRICT - 573 201. 4. THE DEPUTY COMMISSIONER HASSAN. HASSAN DISTRICT - 573 201 …RESPONDENTS (BY SMT. B. SUKANYA BALIGA, AGA) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS, QUASH THE IMPUGNED ORDER DT. 13.12.2022 PASSED IN 13/2022-23 BY THE R2 PRODUCED VIDE ANNX-L IS ARBITRARY AND ILLEGAL AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL ORAL ORDER The petitioner is before this Court being aggrieved by the action initiated against him on account of supply of defective materials/against the tender specifications, resulting in orders being passed as per Annexures-L, P and Q. 2. Petitioner, a successful bidder, was awarded a contract by the respondent No.4-Authorities on 13.09.2022 - 3 - HC-KAR NC: 2026:KHC:9843 WP No. 16862 of 2023 for supply of beds, pillows, bed sheets and bed spreads to Dr.Ambedkar Residential School, subject to the terms and conditions enumerated in the Work Order produced at Annexure-C. Condition No.2 of the said order indicates that the petitioner was required to supply the materials strictly in accordance with the specifications within 30 days from the date of the order. Condition No.6 indicates that in the event of any violation, the amount payable and the Bank Guarantee would be forfeited. 3. The petitioner is stated to have supplied the materials on 02.11.2022 and on verification, it was found that he has supplied defective materials, which are not in accordance with specifications. A notice dated 06.12.2022 was issued to the petitioner. In response, the petitioner submitted a communication dated 07.12.2022 stating that the supply of the materials was by mistake, as the materials which were originally intended for a Community Hall, were by mistake sent to the Hostel. Therefore, he sought for return of the said materials. - 4 - HC-KAR NC: 2026:KHC:9843 WP No. 16862 of 2023 4. Not being satisfied with the explanation given, proceedings were conducted by the Deputy Commissioner, Hassan District. A detailed order dated 26.12.2022 was passed cancelling the tender, forfeiting the Bank Guarantee and blacklisting the petitioner from participating in tender processes for a period of one year in terms of Section 26A(6) of the Karnataka Transparency Public Procurements Act, 1999, as per Annexure-Q. Further, the criminal proceedings were directed to be launched as per Annexure-L. In addition, respondent No.2 by communication dated 13.12.2022, has directed the respondent No.3 to register a criminal case. Being aggrieved by the aforesaid order, the petitioner is before this Court. 5. The learned counsel for the petitioner submits that supply of the materials as noted above is not in dispute, except for the fact that instead of supplying the materials as per tender specifications, the petitioner supplied the materials which were meant to be supplied to the Community Hall. It is contended that such a mistake was a bona fide mistake without any malafide intention, much less - 5 - HC-KAR NC: 2026:KHC:9843 WP No. 16862 of 2023 any criminal intent. It is further submitted that the impugned orders, namely cancelling the tender, forfeiting the Bank Guarantee and initiation of the criminal prosecution against the petitioner are harsh compared to the bona fide mistake committed by the petitioner. Hence, he seeks for allowing the petition. 6. Per contra, the learned AGA justifies the orders impugned and submits that the petitioner was required to strictly comply with the Work Order issued on 13.09.2022, which specifically provided for supply of materials within 30 days strictly in accordance with the specifications. It has also provided express clause of the consequences in the event of violation of the same. Since the petitioner has admittedly not complied the terms of the Work Order, the consequential orders have been passed and same cannot be found fault with. Hence, he seeks for dismissal of the petition. 7. Heard the learned counsel appearing for the parties and perused the material on record. - 6 - HC-KAR NC: 2026:KHC:9843 WP No. 16862 of 2023 8. Though the petitioner does not dispute the fact that he supplied materials which are not in accordance with specifications, a plea of bona fide mistake has been raised. As rightly submitted by Learned AGA, the said plea cannot be accepted inasmuch as the issue involved pertains to performance of contractual terms. Work Order dated 13.09.2022 specifically mandated the petitioner to supply the materials strictly in accordance with specifications within 30 days, failing which the consequences flowing upon the failure of which is also expressly provided under the contract. This Court, therefore, declines to show any indulgence in this matter. 9. With regard to initiation of the criminal prosecution at the instance of respondent No.2, there appears to be considerable force in the submission being made by the petitioner. However, no details of further action in this regard are forthcoming. If any crime is registered, the petitioner may have take appropriate steps in accordance with law. It is therefore made clear that, since the petitioner has already been imposed the sanction of - 7 - HC-KAR NC: 2026:KHC:9843 WP No. 16862 of 2023 blacklisting for a period of one year and his amount of the Bank Guarantee has been forfeited, this Court is of the view that the competent Authority shall consider not to precipitate the matter if no further actions is initiated pursuant to Annexure-L. If on the other hand any criminal proceedings is already initiated, the petitioner is at liberty to avail such remedy as may be permissible under law. 10. Accordingly, the writ petition is disposed of. Sd/- (M.G.S. KAMAL) JUDGE SMC List No.: 1 Sl No.: 10