Even in a contractual matter, if the state acts arbitrarily, a writ petition can be entertained under Article 226 of the Constitution. A writ petition for a monetary claim against the state is maintainable if the state's action is arbitrary.

ORDER :

1. The petitioner-M/s BBP Studio Virtual Bharat Private Limited is before this Court seeking quashment of communication dated 25-10-2022 and for other incidental reliefs.

2. Heard Sri Aditya Sondhi, learned senior counsel appearing for the petitioner, Sri B.V.Krishna, learned Additional Government Advocate appearing for respondents 1 and 2 and Sri H.Mohan Kumar, learned counsel appearing for respondent No.3.

3. Sans unnecessary details, the facts in brief which are germane for consideration of the lis are as follows:-

The petitioner claims to be a renowned film production house engaged in the business of producing feature films, documentaries, commercials and music videos. The petitioner further claims to have made more than 500 television commercials for both Indian and International brands and has also produced albums like Vande Mataram and Jana Gana Mana videos. Respondent No.2 is the Invest Karnataka Forum (hereinafter referred to as ‘the Forum’ for short) created by Government to promote investments and to market Karnataka within India and globally in order to attract such investments. The Forum was established under Section 8 of the Companies Act as amended in the year 2013. The Chair person of the Forum is the Minister for Large and Medium Scale Industries and is cochaired by the leader in the industry in the State of Karnataka. The Forum consists of 8 Directors and all the Directors are of the Government and the industry. This is the broad composition of the Forum.

4. The Government of Karnataka holds Global Investors Meet annually. Likewise a global investors meet titled “Invest Karnataka 2022’ was slated to be held between 2nd and 4th November, 2022, with the object of projecting the State and reflecting the role of the State for a play in the global supply chain, the petitioner was sought to be hired for production of a film. On 16-06-2022 the 3rd respondent/Marketing Communication and Advertising Limited which is a subsidiary unit of Mysore Sales International Limited issued an invitation for expression of interest for appointment of business associates for the event i.e., Invest Karnataka 2022 and other media services by way of tender process. In terms of the said invitation empanelment of business associates was called for in four categories based on valuation of work ranging from Rs. 25,00,000/- to Rs. 1,00,00,000. On 14-07-2022 the 3rd respondent issued a communication to the petitioner notifying its pre-qualification and successful acceptance of the application of the petitioner. The petitioner was called upon to furnish a security deposit applicable to the category in which he had applied for along with certain other post qualification formalities. The petitioner on 18-07-2022 communicates to the 3rd respondent with an intention to showcase the uniqueness of the State of Karnataka through a 3D film during the Global Investors Meet which was scheduled to be held between 2nd and 4th November, 2022 at Bangalore Palace.

5. The Forum communicated to the 3rd respondent to provide the costing for creation of the 3D film as was communicated in the communication of the petitioner. The 3rd respondent communicates a proposal to the Forum quoting a sum of Rs. 4,08,87,000/- for creation of 3D film showcasing the State of Karnataka. After these correspondences on 11-08-2022 the Forum communicates to the 3rd respondent acceptance of proposal by its Competent Authority and directed the 3rd respondent to execute work order as was mentioned in the communication dated 18-07-2022. In terms of the said communication, the 3rd respondent issues a work order to the petitioner to execute the work which did bear the approval of the Forum. The work order was issued with a stipulation that the petitioner should complete the work within the budget of Rs. 3,89,40,000/- including taxes. Once the work order was issued, the petitioner