2009 (2) KantLJ 521
High Court of Karnataka
THE HONOURABLE MR. JUSTICE N. KUMAR
N.G. Puttaswamy - Appellant
Versus
State Of Karnataka - Respondent
Writ Petition No.7799 of 2007 (GM-RES)
Date of Judgment : 12-01-2009
The petitioners have preferred this writ petition seeking quashing of Annexure-C passed by the third respondent-Commissioner, Davanagere Municipal Corporation releasing food-grains for implementation of the contract of various developmental activities as set out in Schedule I to Annexure-C.
2. The first petitioner was Ex-Chairman of APMC, Davanagere and the second petitioner was also Ex-Chairman of City Municipality, Davanagere. The first petitioner is also a contractor. Both of them are social workers. They claim that they are interested in the welfare of Davanagere City Corporation. Their grievance is that as per Schedule I to Annexure-C, various construction works were undertaken by the second respondent. The said contract was awarded to respondents 4 and 5. The total value of the said contract is Rs. 4,79,04,000.00. As per Annexure-C, food-grains were released for being distributed to persons who are employed in the said construction work. It is their further contention that the said allotment of work was done at the behest of the 6th respondent who was in-charge of Municipality of Davanagere District and most of the work is executed in his constituency, Mayakonda. The petitioners contend that respondents 4 and 5, even if they are Governmental agencies, they could not have been entrusted with the said work without calling for tenders under the provisions of the Karnataka Transparency in Public Procurements Act, 1999 (for short hereinafter referred to as "the Act"), as the total value of the work exceeded Rs. 5 lakhs. Therefore, the petitioners seek quashing of Annexure-C and for a writ of mandamus directing respondents 1 to 3 to comply with the Government order at Annexure-B and entrust the work through calling for public tenders.
3. After service of notice, respondents 3 to 5 have entered appearance and they have filed detailed statement of objections. They contend that respondents 4 and 5 to whom contract was entrusted are Governmental agencies and for awarding contract to them, it is not necessary to follow the procedure prescribed in the Act. Section 4(d) of the Act is attracted to the contract in question. Moreover, the entire work entrusted to them has been completed and therefore the writ petition has become infructuous.
4. I have heard learned Counsel for the parties.
5. The procurement of goods and services by Government agencies for their own purposes is a core element of the operation of Governments. It secures the inputs that enable Governments to fulfill their tasks, having a major impact on key stakeholders in society. Since public resources are scarce, the efficiency of the procurement process is a primary consideration of every procurement regime. Open, transparent and non-discriminatory procurement is generally considered to be the best took to achieve `value of money' as it optimises competition among suppliers. Governments are the largest consumers in an economy. Public procurement is an influential vehicle for Governments to lead by example and "walk the talk” on sustainable development. Public procurement is about laws, policies and practices to integrate economic, social and environmental risks into public procurement processes and decision.
6. A well-regulated Government procurement system, embodying the principles of transparency and non-discrimination, helps to ensure optimal value for money in public purchasing. At the domestic level, the procurement of goods and services by Government agencies provides needed inputs that enable Governments to deliver public services and fulfill other tasks. Procurement systems have a significant impact on the efficiency of the use of public funds and, more generally, on public confidence in Government and on good governance. The attainment of value for money, public access to information on Government contracts, and fair opportunities for suppliers to compete for Government contracts, are all essential requirements of an efficient Government procuremen
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