The State Of Karnataka vs M/S Mp24 Construction

Citation : 2025 Latest Caselaw 9729 Kant
Judgement Date : 3 November, 2025

Karnataka High Court

The State Of Karnataka vs M/S Mp24 Construction on 3 November, 2025

                                          -1-
                                                  NC: 2025:KHC:44042-DB
                                                   WA No. 1729 of 2025


              HC-KAR




                  IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                       DATED THIS THE 3RD DAY OF NOVEMBER, 2025

                                       PRESENT
                   THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
                                         AND
                       THE HON'BLE MR. JUSTICE C.M. POONACHA
                         WRIT APPEAL NO. 1729 OF 2025 (GM-TEN)
             BETWEEN:

             1.   THE STATE OF KARNATAKA
                  REP. BY PRINCIPAL SECRETARY TO GOVERNMENT,
                  PUBLIC WORKS DEPARTMENT, NO.28, VIKASA
                  SOUDHA, BENGALURU 560 001.

             2.   STATE LEVEL DEBARMENT COMMITTEE
                  ROOM NO.317, 3RD FLOOR, VIKAS SOUDHA,
                  BENGALURU-560001
                  REPRESENTED BY ITS CHAIRMAN.
                                                          ...APPELLANTS
Digitally
signed by     (BY SRI. KIRAN V. RON, AAG ALONG WITH
SUMATHY       SRI. K.S. HARISH GOVERNMENT ADVOCATE)
KANNAN
Location:     AND:
High Court of
Karnataka     1. M/S MP24 CONSTRUCTION
                  COMPANY (LEAD MEMBER OF CONSORTIUM WITH
                  RAMALINGAM CONSTRUCTION COMPANY PVT. LTD)
                  A PROPRIETARY CONCERN, HAVING ITS HEAD OFFICE
                  AT NO.95, HADENAHALLI VILLAGE,
                  SHRAVANABELAOAL ROAD, BARALU POST,
                  CHANNARAYAATNA TALUK, HASSAN DISTRICT,
                  BRANCH OFFICE
                  B2, 1201, BRAHMAGINI, MALAGALA BDA FLATS, PHASE
                  2, 5TH NORTH CROSS ROAD, BENGALURU 560072
                            -2-
                                     NC: 2025:KHC:44042-DB
                                      WA No. 1729 of 2025


 HC-KAR



     REPRESENTED BY ITS PROPRIETOR

2.   KARNATAKA ROAD DEVELOPMENT CORPORATION
     LIMITED,
     A COMPANY INCORPORATED UNDER THE PROVISIONS
     OF COMPANIES ACT, 1956, HAVING ITS REGISTERED
     OFFICE AT, SY.NO.8, SAMPARKA SOUDHA, BEP
     PREMISES, DR. RAJKUMAR ROAD, RAJAJINAGAR 1
     BLOCK, BENGALURU 560010 REPRESENTED BY ITS
     MANAGING DIRECTOR

3.   CHIEF ENGINEER,
     KARNATAKA ROAD DEVELOPMENT CORPORATION
     LIMITED, SY. NO.8, SAMPARKA SOUDHA, BEP
     PREMISES, DR. RAJKUMAR ROAD, RAJAJINAGAR 1ST
     BLOCK, BENGALURU 560010.

4.   BHARAT VANIJYA EASTERN PVT LTD
     A COMPANY REGISTERED UNDER THE PROVISIONS OF
     THE COMPANIES ACT, HAVING ITS REGISTERED
     OFFICE AT 126, CHITTARANJAN AVENUE, 2ND FLOOR,
     KOLKATA - 700073 REPRESENTED BY ITS DIRECTOR.

5.   VASANT VALAPPA NAIK,
     S/O VALAPPA RAMAPPA NAIK, CHIEF ENGINEER,
     KARNATAKA ROAD DEVELOPMENT CORPORATION
     LIMITED, SY.NO.8, SAMPARKA SOUDHA, BEP
     PREMISES, DR. RAJKUMAR ROAD, RAJAJINAGAR 1ST
     BLOCK, BENGALURU 560010.

6.   N.SUSHELAMMA
     MANAGING DIRECTOR KARNATAKA ROAD
     DEVELOPMENT CORPORATION LIMITED, SY.NO.8,
     SAMPARKA SOUDHA, BEP PREMISES, DR. RAJKUMAR
     ROAD, RAJAJINAGAR 1ST BLOCK, BENGALURU 560010.


                                         ...RESPONDENTS
                                 -3-
                                           NC: 2025:KHC:44042-DB
                                            WA No. 1729 of 2025


 HC-KAR




(BY SRI. S.S. NAGANAND SENIOR ADVOCATE
ALONG WITH SRI. PRASHANTH MURTHY S.G., ADVOCATE
FOR C/R-1
NOTICE TO RESPONDENT NOS.2 TO 6 IS DISPENSED WITH)


        THIS WRIT APPEAL FILED U/S 4 OF THE KARNATAKA
HIGH COURT ACT PRAYING TO (a) ALLOW THE WRIT APPEAL
(b) SET ASIDE THE IMPUGNED INTERIM ORDER DATED
25.09.2025 PASSED BY THE LEARNED SINGE JUDGE IN WP
No. 25668/2025 (GM-TEN) AND ETC.

        THIS    APPEAL,    COMING     ON    FOR    PRELIMINARY
HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN
AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
       and
       HON'BLE MR. JUSTICE C.M. POONACHA


                          ORAL JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

1. Issue notice.

2. Sri. Prashanth Murthy S.G., learned counsel accepts notice for respondent No.1. Notice to respondent Nos.2 to 6 is dispensed with.

-4-

NC: 2025:KHC:44042-DB WA No. 1729 of 2025 HC-KAR

3. The appellant (State of Karnataka), has filed the present appeal, impugning an interim order dated 25.09.2025 passed by the learned Single Judge in Writ Petition No.25668 of 2025 (GM- TEN) and connected matters. Respondent No.1 (writ petitioner), had filed the said writ petition, inter alia impugning the action of the appellant not to consider its technical bid and subsequently to blacklist the writ petitioner.

4. There is no dispute that the action of the appellant is premised on certain allegations of inter alia furnishing false work certificates for securing the award of the contract in question.

5. The learned counsel state that one of the questions that falls for consideration of the learned Single Judge is, whether the State can award a contract to L2 (Second lowest tenderer), if the writ petitioner's tender is rejected. Apparently, the question whether in such circumstances fresh tenders are required to be invited or whether L2 is required to be awarded the tender, is being considered by the competent authorities.

6. In the meanwhile, the M/s. Cauvery Niravari Nigam Limited, an undertaking of the State of Karnataka, had issued notices -5- NC: 2025:KHC:44042-DB WA No. 1729 of 2025 HC-KAR inviting tenders for executing other work(s). The writ petitioner would be barred from participating in the said tenders as a consequence of the blacklisting order impugned. Since the issue whether the order blacklisting the writ petitioner is sustainable, is being examined by the learned Single Judge; the learned Single Judge has issued an interim order, observing that the decision of the competent authority on the question whether the tender is required to be awarded to L2 or whether fresh tenders are required to be called, would be subject to the outcome of the writ petitions.

7. Additionally, the Court also permitted the writ petitioner to participate in the tenders invited by M/s. Cauvery Niravari Nigam Limited, but clarified that the petitioner's participation would be subject to the orders passed in the writ petitions. It was also clarified that the writ petitioner would not claim any equities on account of participating in the tender.

8. Mr. Kiran V. Ron, learned AAG appearing for the appellant submits that the decision of the competent authority regarding whether to award the contract to L2 or issue fresh tenders, is a separate decision and the same cannot be subject matter of -6- NC: 2025:KHC:44042-DB WA No. 1729 of 2025 HC-KAR decision in the pending writ petition. He also assails the interim order insofar as it permits the writ petitioner to participate in the tenders invited by M/s. Cauvery Niravari Nigam Limited.

9. Insofar as the first issue is concerned - whether the decision of the competent authority to award the contract to L2 or issue fresh tenders - is concerned, it is clear that the same would necessarily have to be subject to the orders passed in the writ petitions. This is so because the writ petitioner's tender has in effect been rejected on the ground of the complaints received and the backlisting order. If the backlisting order is set aside, the writ petitioner would be entitled for being considered for award of the contract. In such circumstances, the question of awarding the contract to L2 or issuing a fresh tender, need not arise.

10. Given the fact that the learned Single Judge has placed the matter for consideration on 05.11.2025, we do not consider it apposite to interfere with the interim arrangement, at this stage.

11. Insofar as the second issue is concerned - that is, permitting the writ petitioner to participate in tenders floated by M/s. Cauvery Niravari Nigam Limited, - the learned Single Judge has amply -7- NC: 2025:KHC:44042-DB WA No. 1729 of 2025 HC-KAR clarified that the same would be subject to the outcome of the petitioner's challenge. Further, the writ petitioner would not claim any equities or any advantage of the interim order except to the extent that it removes the disability in participating in the tender on account of the blacklisting order. The rationale of issuing such directions is apparent. If the writ petitioner was to succeed in the writ petition and the blacklisting order is set aside, the writ petitioner could not be visited with any disadvantages on that account.

12. Undeniably, permitting the petitioner to participate in such tenders, may create some uncertainty in the finalisation of the tenders. However we do not consider it apposite to examine the said question, as the writ petitions are listed by the Learned Single Judge for final hearing on 05.11.2025. Thus, the apprehension that there may be a delay at this stage, is unfounded. However, if the petitions are not disposed of and it is likely that finalisation of the tenders invited by M/s. Cauvery Niravari Nigam Limited would be delayed, the appellant would have the liberty to apply afresh. -8-

NC: 2025:KHC:44042-DB WA No. 1729 of 2025 HC-KAR

13. The apprehension that the decision of the writ petitions may be delayed on account of any delay by the competent authority (State Cabinet) to take a stand, is also unfounded.

14. As noticed above, the writ petitioner's challenge is premised on actions taken by the appellant against the writ petitioner. Thus, irrespective of whether the State Cabinet takes a decision within time or not, the same would not impede the learned Single Judge from taking up the final hearing of the writ petitions, as scheduled.

15. The appeal is disposed of with the aforesaid observation.

Sd/-

(VIBHU BAKHRU) CHIEF JUSTICE Sd/-

(C.M. POONACHA) JUDGE KS List No.: 1 Sl No.: 26