Karnataka High Court
Prudent Management Solutions vs Dr B L Sujatha Rathod on 4 March, 2025
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NC: 2025:KHC:9505-DB
WA No. 1576 of 2024
C/W CCC No. 943 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 4TH DAY OF MARCH, 2025
PRESENT
THE HON'BLE MR N. V. ANJARIA, CHIEF JUSTICE
AND
THE HON'BLE MR JUSTICE M.I.ARUN
WRIT APPEAL NO. 1576 OF 2024 (GM-RES)
C/W
CCC NO. 943 OF 2024 (CIVIL)
IN W.A. No. 1576/2024
BETWEEN:
1. THE DIRECTOR
MEDICAL EDUCATION
NO.24, 1ST FLOOR
PWD BUILDING
ANANDARAO CIRCLE
BENGLAURU - 560 009.
Digitally signed
by
PRABHAKAR
SWETHA 2. THE GOVERNMENT OF KARNATAKA
KRISHNAN
Location: High
REPRESENTED BY ITS SECRETARY
Court of MEDICAL EDUCATION
Karnataka
M.S. BUILDING
DR. AMBEDKAR ROAD
BENGALURU-560001.
...APPELLANTS
(BY SRI RUBEN JACOB, AAG A/W
SRI K.S. HARISH, AGA )
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WA No. 1576 of 2024
C/W CCC No. 943 of 2024
AND:
1. PRUDENT MANAGEMENT SOLUTIONS
A PROPRIETORSHIP CONCERN
G-95, OM HEERA PANNA PREMISES
OSHIWARA LINK ROAD
ANDHERI WEST, MUMBAI - 400 102
REPRESENTED BY ITS
DIRECTOR
MR. V. ANAND.
2. LAJ EXPORTS LIMITED
A COMPANY INCORPORATED UNDER
THE COMPANIES ACT, 1956
5-A MAIN, 2ND STAGE
INDUSTRIAL SUBURB
YESHWANTHPURA
BENGALURU - 560 024
REPRESENTED BY ITS
DIRECTOR
MR. JYOTHI NAGNATHRAO SAMBATWAD.
...RESPONDENTS
(BY SRI UDAYA HOLLA, SENIOR ADVOCATE FOR
SRI VIVEK HOLLA, ADVOCATE FOR R-1 & R-2)
THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA
HIGH COURT ACT PRAYING TO SET ASIDE THE IMPUGNED
ORDER DATED 10.04.2024 PASSED BY THE LEARNED SINGLE
JUDGE IN W.P. No.6875/2023 (GM-RES) & ETC.
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NC: 2025:KHC:9505-DB
WA No. 1576 of 2024
C/W CCC No. 943 of 2024
IN CCC NO. 943/2024 (CIVIL)
BETWEEN:
1. PRUDENT MANAGEMENT SOLUTIONS
G-95, OM HEERA PANNA PREMISES
OSHIWARA LINK ROAD
ANDHERI WEST
MUMBAI - 400 102
REPRESENTED BY ITS DIRECTOR
MR. V. ANAND.
2. LAJ EXPORTS LIMITED
5-A MAIN, 2ND STAGE
INDUSTRIAL SUBURB
YESHWANTHAPURA
BENGALURU - 560 024
REPRESENTED BY ITS DIRECTOR
MR.PRADEEP NAIK.
...COMPLAINANTS
(BY SRI UDAYA HOLLA, SENIOR ADVOCATE FOR
SRI VIVEK HOLLA, ADVOCATE)
AND:
1. DR. B.L. SUJATHA RATHOD
THE DIRECTOR
MEDICAL EDUCATION
NO.24, 1ST FLOOR, PWD BUILDING
ANANDARAO CIRCLE
BENGALURU - 560 009.
2. MR. MOHAMMAD MOHSIN
SECRETARY, MEDICAL EDUCATION
THE GOVERNMENT OF KARNATAKA
M.S.BUILDING
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WA No. 1576 of 2024
C/W CCC No. 943 of 2024
DR. AMBEDKAR ROAD
BENGALURU - 560 001.
...ACCUSED
3. STATE OF KARNATAKA
REP. BY SECRETARY
MEDICAL EDUCATION DEPARTMENT
VIDHANA SOUDHA
AMBEDKAR BEEDHI,
SAMPANGI RAMA NAGARA
BENGALURU
KARNATAKA - 560 001.
...PRO FORMA RESPONDENT
(BY SRI RUBEN JACOB, AAG A/W
SRI K.S. HARISH, AGA)
THIS CCC IS FILED UNDER THE CONTEMPT OF
COURTS ACT, 1971, PRAYING TO ISSUE APPROPRIATE
ORDERS HOLDING THE ACCUSED GUILTY OF GROSS
CONTEMPT OF THE ORDERS OF THIS HON'BLE COURT
DATED 10.04.2024 PASSED IN W.P.NO.6875/2023(GM-RES)
(ANNEXURE-E) AND PUNISH THE ACCUSED AND
FURTHER DIRECT THE ACCUSED TO PAY THE BALANCE
SUM OF Rs.38,26,00,000/- TO THE 1ST COMPLAINANT AND
GRANT SUCH OTHER AND FURTHER RELIEFS AS ARE
JUST.
THIS APPEAL AND CONTEMPT PETITION, COMING ON
FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED
THEREIN AS UNDER:
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WA No. 1576 of 2024
C/W CCC No. 943 of 2024
CORAM: HON'BLE THE CHIEF JUSTICE MR. JUSTICE
N. V. ANJARIA
and
HON'BLE MR JUSTICE M.I.ARUN
ORAL JUDGMENT
(PER: HON'BLE THE CHIEF JUSTICE
MR. JUSTICE N. V. ANJARIA)
By filing this appeal, the appellant-the Director, Medical
Education has sought to call in question the judgment and order of
learned Single Judge dated 10th April 2024 whereby learned Single
Judge directed the appellant authorities to release the amount of
Rs.38,26,00,000/- in favour of the petitioner No.1 within six weeks,
further granting liberty to the petitioners to initiate civil proceedings
for grant of interest for the delayed period or the non-payment.
2. The prayer of the petitioner before learned Single Judge was
for issuance of writ of mandamus for refund of Rs.76,51,35,000/-
which was towards the cost of Personal Protection Equipment kits
(PPE kits) supplied by the petitioners to the appellant during the
period of second wave of pandemic Covid-19. Agreement dated
8th September 2020 between the Director of Medical Education and
petitioner No.2 was entered into for supply of the PPE kits.
Petitioner No.2 authorised the petitioner No.1 to supply the kits,
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which were supplied and the amount towards the same was
demanded.
3. In course of the hearing and pendency of the petition, several
orders came to be passed by learned Single Judge, more
particularly dated 15th September 2023 and 21st November 2023,
as also dated 27th March 2024. Pursuant to the orders passed,
Rs.38,26,00,000/- was deposited before the Court. It was recorded
that the amount in part came to be released in favour of the
petitioner on 27th February 2024 and the remainder claim was
approximately Rs.76.00 crores.
3.1 It was submitted before the learned Single Judge on behalf
of the appellants herein that the supply made by the petitioners
were under scrutiny and was being audited, therefore, it would not
be possible to release the remaining amount without the outcome
of the inquiry of the audit.
3.2 In this appeal, it was inter alia contended by the appellant
that 5,82,960 PPE kits of the value amounting to Rs.76,51,35,000/-
was supplied and it was indicated to the petitioners that the
settlement of the claim towards the supply of the said PPE kits was
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under scrutiny and the payment would be made only depending
upon the outcome of the scrutiny which was still not completed and
that it was specifically contended before the learned Single Judge
that the scrutiny was underway.
3.3 The impugned order was passed notwithstanding, it was
submitted. It is the further case of the appellant that there was an
undertaking offered and given by the respondents that they would
indemnify the appellants for the amount which may be released in
their favour. However, learned Single Judge in his final order
overlooked the said aspect.
3.4 Along with the appeal, appellants have filed application which
is interim application No.5 of 2024 under Order VI Rule 17 of the
Code of Civil Procedure, 1908 seeking permission to amend the
memorandum of appeal, thereby in addition to seeking to
incorporate paragraphs 6(a), 6(e), to substitute paragraph 7, as
also to add paragraphs 8 to 13 in the memorandum of appeal by
way of substitution, the appellants have also sought additional
prayers.
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3.5 It is to be further noted that interim application No.4 of 2024
is also filed seeking to produce additional documents. Thereby
certain additional material is permitted to be produced.
3.6 I.A. No.4 of 2024 as well as I.A. No.5 of 2024 came to be
allowed by the Court as per order dated 11th February 2025.
4. Heard learned Additional Advocate General Mr. Ruben
Jacob with learned Additional Government Advocate Mr. K.S.
Harish for the appellant and learned Senior Advocate Mr. Udaya
Holla for learned Advocate Mr. Vivek Holla for the respondent
Nos.1 and 2-the original petitioners.
5. Though the submissions were made by both the sides with
some elaboration, in view of the course the Court is going to adopt
in this order, it is considered not necessary to deal with the
contentions on merits.
5.1 As the appellant has added further pleadings through the
amendment application, which was I.A. No.5 of 2024 and granted
as above, the additional factual aspects and the legal contentions
are required to be gone into in light of the amendment. In the
second place, I.A. No.4 of 2024 for production of additional
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documents is also allowed as stated above. Fresh material are
allowed to be placed on record.
5.2 By the aforesaid two orders passed in the respective interim
applications, appellants were brought on record the additional
facts. The documents which are produced and permitted and
which now forms part of the record of the appeal, are (i) Contract
Form dated 07.09.2020; (ii) Purchase Order dated 30.06.2021; (iii)
Notification dated 10.08.2023; (iv) ACS Committee Report dated
27.12.2023; (v) Notices dated 10.10.2024; (vi) Notification dated
25.08.2023; (vii) Sealed Cover - Report dated 31.08.2024; (viii)
Notices dated 04.11.2024 and (ix) Official memorandum dated
15.10.2024. The document No.(vii) above which was sealed cover
was permitted to be opened by the Court in the presence of
learned Advocate for the parties and the copy thereof is made
available to them.
6. Having regard to the above, the Court is of the view that the
facts and the documents now additionally on record which are
sought to be relied on by the appellant and refuted by the
respondents, are required to be gone into and examined for their
effect on merits of the rival cases by learned Single Judge. The
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appreciation of the additional documents and facts pleaded may be
better done at the level of first instance.
6.1 The proper course therefore would be to remit back the
proceedings of the writ petition No.6875 of 2023 to learned Single
Judge for deciding the petition afresh. Accordingly, the writ petition
is remanded to learned Single Judge for his fresh decision. While
arriving at the decision afresh, learned Single Judge shall consider
the additional facts and documents on their merits and the rival
submissions which may be advanced on that score to render the
decision.
6.2 In order that learned Single Judge is enabled to decide the
writ petition afresh as directed above, impugned judgment and
order of learned Single Judge dated 10th April 2024 is set aside.
6.3 It is clarified that this Court has not expressed any opinion on
merits of the case. The remand directed herein does not reflect
anything on merits of the case. It is guided only in view that the
additional facts and the documents are brought on record by the
appellant.
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6.4 It is further observed that both the parties are at liberty to
raise all the contentions of the kind and nature available in law to
them, before learned Single Judge, when learned Single Judge
accepts the writ petition for hearing and decision afresh.
6.5 It will be open for the parties to request learned Single Judge
for expeditious hearing of the petition.
7. The present appeal is allowed to the aforesaid extent and in
the aforesaid terms.
In view of the disposal of Writ Appeal No.1576 of 2024 by the
order of even date, the contempt proceedings for the present does
not survive.
Sd/-
(N. V. ANJARIA)
CHIEF JUSTICE
Sd/-
(M.I.ARUN)
JUDGE
KPS
