Karnataka High Court
Karnataka Service Providers ... vs Bharath Electronics Limited on 27 September, 2022
Bench: Acting Chief Justice, S Vishwajith Shetty
1
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 27TH DAY OF SEPTEMBER 2022
PRESENT
THE HON'BLE MR. ALOK ARADHE
ACTING CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE S. VISHWAJITH SHETTY
W.A. NO.628 OF 2022 (GM-TEN)
BETWEEN:
KARNATAKA SERVICE PROVIDERS ASSOCIATION
REGD. OFFICE NO.2, 2ND FLOOR
IST MAIN, MUNESHWARA BLOCK
MAHALAKSHMI LAYOUT
BENGALURU-560086
REPRESENTED BY ITS PRESIDENT.
... APPELLANT
(BY MR. K. SUBBA RAO, SR. COUNSEL FOR
MR. L. MURALIDHAR PESHWA, ADV.,)
AND:
BHARATH ELECTRONICS LIMITED
(A GOVERNMENT OF INDIA ENTERPRISES)
REP. BY ITS MANAGING DIRECTOR
JALAHALLI POST, BENGALURU-560013.
... RESPONDENT
(BY MR. ISMAIL M. MUSBA, ADV., FOR C/R)
---
THIS WRIT APPEAL IS FILED U/S 4 OF THE
KARNATAKA HIGH COURT ACT, PRAYING TO SET ASIDE THE
ORDER DATED 28/06/2022, PASSED IN WRIT PETITION
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NO.7980/2022 ON THE FILE OF THIS HON BLE COURT AS
THE SAID ORDER IS MANIFESTLY ERRONEOUS AND ULTRA
VIRES OF THE CONSTITUTION. DECLARE THAT THE E-
TENDER NOTIFICATION DATED 14/03/2022 INVITED BY THE
RESPONDENT IS ILLEGAL AND ULTRA VIRES OF THE
CONSTITUTION. RESTORE THE PRACTICE OF AWARDING
THE CONTRACT FOR FACILITY MANAGEMENT SERVICES
WHICH EXISTED PRIOR TO THE E-TENDER NOTIFICATION
DATED 14/03/2022.
THIS WRIT APPEAL COMING ON FOR PRELIMINARY
HEARING, THIS DAY, ACTING CHIEF JUSTICE DELIVERED
THE FOLLOWING:
JUDGMENT
This intra Court appeal has been filed against an
order dated 24.06.2022 passed by learned Single
Judge by which writ petition preferred by the
appellant has been dismissed.
2. Facts giving rise to filing of the appeal
briefly stated are that Bharath Electronics Limited
(hereinafter referred to as the 'BEL' for short) is a
public sector undertaking. It formed a Committee
comprising experts to reconsider the issue of floating
of tender for various contracts for the factory and
estate with the intention of giving competitive and to
avoid duplication of work resulting in saving of
manpower and finance. The Committee made a
recommendation to merge and establish facility
management contract only to consolidating 107
contracts out of 210 contracts which is approximately
20% of the work in monetary terms namely Rs.22
crores out of Rs.100 crores. The management of BEL,
on 06.12.2021 granted approval to establishment of
facility management contract.
3. An e-tender was published on 14.03.2022
wherein tenders were invited. The petitioner which is
an association of contractors filed a writ petition on
08.04.2022, in which e-tender was challenged on the
ground, of same being violative of Article 39B of the
Constitution. On 18.04.2022, technical bid was
opened, whereas, on 02.05.2022, price bid was
opened. The learned Single Judge by an order dated
24.06.2022 has dismissed the writ petition preferred
by the appellant.
4. Learned Senior Counsel for the appellant
submitted that writ petition by an Association is
maintainable. It is further submitted that the tender
is violative of Article 39B of the Constitution. In
support of aforesaid submission, reliance is placed on
the decisions of Hon'ble Supreme Court in STATE OF
KARNATAKA AND ANR. v. SHRI RANGANATHA
REDDY & ANR.1 and M/s. VICTORIAN GRANITES (P)
LTD. v. P. RAMA RAO & ORS.2
5. We have considered the submissions of
both the sides and have perused the records. In
TATA CELLULAR v. UNION OF INDIA3, it has been
held by Hon'ble Supreme Court that government must
have freedom of contract and terms of tender are not
open to judicial scrutiny because the invitation to
1978 SCR (1) 641
(1996) 10 SCC 665
1994 (6) SCC 651
tender is in the realm of contract. A policy decision
has been taken by the BEL with an intention of giving
competitive and to avoid duplication of work with a
view to save its manpower and finances. The
aforesaid decisions does not violate any of the
fundamental rights guaranteed to the appellant
Association or its members.
6. The appellant has no fundamental right to
carry on business with the Government. During the
pendency of the writ petition, a letter of intent has
been issued to the successful bidder and a work order
has already been issued on 13.07.2022. The
members of the appellant association can submit their
bid in respect of works worth Rs.88 crores.
7. The impugned tender notice does not suffer
from any infirmity. The learned Single Judge
therefore, has rightly declined to entertain the writ
petition. We do not find any ground to differ with the
view taken by the learned Single Judge.
In the result, the appeal fails and is hereby
dismissed.
Sd/-
ACTING CHIEF JUSTICE
Sd/-
JUDGE
SS
