M/S Karnataka Ceramics vs Bangalore Electricity Supply ...
2022 Latest Caselaw 1282 Kant

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

       DATED THIS THE 28TH DAY OF JANUARY, 2022

                         PRESENT

       THE HON'BLE MR. JUSTICE P.S.DINESH KUMAR

                           AND

     THE HON'BLE MR. JUSTICE RAJENDRA BADAMIKAR

        WRIT APPEAL No.3467 of 2015 (GM - KEB)

BETWEEN:

M/S. KARNATAKA CERAMICS,
NO.10, NAGANATHAPURA,
BEGUR HOBLI, BANGALORE - 560 100.
BY ITS PARTNERS
G.M.RAFEE AND KAUSER BANU.
                                            ...APPELLANT
(BY SRI SUMAN K, SENIOR ADVOCATE FOR
SRI DIWAKAR, ADVOCATE)

AND:

1.     BANGALORE ELECTRICITY SUPPLY
       COMPANY LIMITED,
       CORPORATE OFFICE,
       K.R.CIRCLE, BANGALORE - 560 001.
       REPRESENTED BY ITS
       MANAGING DIRECTOR.

2.     THE GENERAL MANAGER ELE
       PROCUREMENT,
       BESCOM CORPORATE OFFICE,
       BANGALORE - 560 001.
                                          ...RESPONDENTS
(BY SRI MADHAV P KASHYAP, ADVOCATE FOR
SRI P.PRASANNA KUMAR, ADVOCATE)
                                  2




     THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE
ORDER PASSED IN WRIT PETITION Nos.17389-390/2015
DATED 07.08.2015.

     THIS WRIT APPEAL COMING ON FOR FINAL HEARING
THROUGH VIDEO CONFERENCING, THIS DAY P.S.DINESH
KUMAR J., DELIVERED THE FOLLOWING:


                          JUDGMENT

Sri K Suman, learned Senior advocate appearing for

appellant submitted that appellant has challenged the

order blacklisting the petitioner as a Contractor by the

Bangalore Electricity Supply Company Limited (BESCOM)

and direction to recover money from it. He further

submitted that the blacklisting aspect has become

infructuous by efflux of time.

2. So far as recovery is concerned, a memo dated

24.01.2022 signed by the General Manager of BESCOM has

been filed and it reads as follows:

"The Respondents/BESCOM most humbly submits as follows:

1. It is submitted that the Appellant and BESCOM had entered in to a contract for

supply of insulators. The majority of the insulators supplied by the appellant failed. Accordingly, notices came to be issued by the BESCOM to the appellant. The appellant tendered their reply to the notices. On considering the reply of the appellant the Managing Director of BESCOM passed an order dated 27-03-2015 blacklisting the appellant for a period of 5 years and further directed to recover losses along with damages from the Appellant herein. Subsequently, vide OM No.BESCOM/GM(Proc)/DGMP/AGMP1/14-5/BC- 10/CYS-04 the loss came to be quantified to the tune of Rs.1,33,00,000/- (One Crore Thirty-Three Lakhs only).

2. It is submitted that the appellant being aggrieved by the order dated 27.03.2015 passed by the BESCOM preferred a Writ Petition vide W.P.No.17389-90/2015. The Hon'ble Single Judge of this Hon'ble Court was pleased to dismiss the petition on the ground that the matter arises out of contractual breach and which cannot be interfered with in the writ jurisdiction. The appellant has assailed the judgment dated 7/8/2015 passed by this

Hon'ble Single in W.P. 17389-90/2015 in the present appeal.

3. It is humbly submitted that the challenge to the order dated 27/3/2015 passed by BESCOM, in so far as blacklisting the appellant for a period of 5 years is concerned, has become infructuous. In so far as recovery of penalty amount is concerned, BESCOM has decided to proceed to recover the penalty from the appellant in accordance with law as under:

a. BESCOM shall institute Arbitration Proceeding for recover of penalty amount along with interest, if the appellant consents for Arbitration, or b. BESCOM shall institute a suit for recovery of the aforesaid penalty amount along with interest from the Appellant before the jurisdictional Court in accordance with law.

4. The same may kindly be taken on record in the interest of justice."

3. It is stated in the memo that BESCOM has decided to

recover penalty in accordance with law.

4. Sri K Suman submitted that in view of the memo

filed by the BESCOM, nothing further survives in this

appeal. Accordingly the appeal is dismissed.

We have not examined the matter on merits. All

contentions of both parties are kept open to be urged in a

suit or arbitration proceedings as contemplated in the

memo.

Sd/-

JUDGE

Sd/-

JUDGE

mv