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2025 Supreme(Kar) 703

IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH
M. Nagaprasanna, J.
Koppala Zilla Sarvajaneka, Represented By Its President - Petitioner
Versus
The Chief Secretary, Vidhana Soudha And Ors. - Respondents
Writ Petition No.107536 of 2024 (S – RES), Writ Petition No.107604 of 2024 (S – RES)
Decided On : 02-06-2025

Advocate Appeared:
For the Petitioner:Sri Channegowda K.S, And Sri B.C.Jnanayyaswami, Advocates, Sri Devappa Hosalli, Advocates
For the Respondent:Smt.Kirtilata R.Patil, Hcgp, Sri Vijayakumar Balagerimath, Advocate, Sri D.V.Pattar, Advocate, Sri Rajashekhar R Gunjalli, Advocate

The participation in a tender process waives the right to subsequently challenge its conditions unless proven arbitrary or illegal.

Headnote:(A) Government Order dated 15-05-2017 - Tender Process - Service charges in proposals must adhere to the specified range; deviation deemed arbitrary - Writ petitions filed against tenders issued for engaging manpower and against resultant contract awards - Court held that participating in tender process waives the right to challenge its conditions post acceptance - Claims of procedural irregularity were rejected based on dates and clauses of the tender. (Paras 5-20)

(B) Judicial Review - Courts do not act as appellate authorities; judicial interference in administrative decision-making is limited to cases of arbitrariness or violation of statutory provisions and does not extend to disputing the merits of tender conditions unless proven otherwise - Court emphasized fairness in government dealings with tenders. (Paras 10-19)

Facts of the case:
The petitioner, representing a community organization, contended procedural improprieties in two tenders awarded for manpower supply, arguing that the awarded contracts violated their rights following the established norms on service charges and the timing of contract awards. The court found no merit in claims due to the waiver of rights by participating in the process.

Findings of Court:
Judicial review of tender processes is constrained, only permitting examination of arbitrary actions. The process adhered to specified timelines and legal stipulations. The petitions lacked merit and were therefore rejected.

Issues: The core questions pertained to the validity of tender conditions related to service charges and the timing of contract awards versus established norms as stipulated in official orders.

Ratio Decidendi: The court reasoned that the petitioner’s participation in the tender process amounted to acquiescence to its terms, rendering subsequent challenges to those terms inadmissible. No arbitrary action was identified in the awarding of contracts within acceptable timelines.

Result: Writ petitions rejected.

Table of Content
1. petitioners challenging tender process citing irregularities. (Para 2 , 3)
2. claims of arbitrariness in tender awarded. (Para 5 , 6)
3. responses from state and tenderer contrasting petitioners' claims. (Para 7 , 8)
4. court examines tender clauses and consistency with legal precedents. (Para 10 , 11 , 12 , 13 , 14)
5. principles on judicial review of tender conditions and fairness. (Para 15 , 17)
6. court dismisses petitions; reiterates limits of judicial intervention. (Para 18 , 19)
7. final rejection of both writ petitions. (Para 20)

ORDER :

M. Nagaprasanna, J.

Koppala Zilla Sarvajaneka Vasathi Nilayagalali Karyanirvaisutiruva Karmekara Sahakara Sangha (hereinafter referred to as ‘the Sangha’ for short) is the common petitioner in both these petitions. The challenges in both these petitions are slightly varied. Since parties to the lis are common, these petitions are taken up together and considered by this common order.

2. Facts, in brief, germane in Writ Petition No.107536 of 2024 are as follows:

The petitioner/Sangha is said to have come into existence on 16-08-2012 comprised of Group-C and Group-D employees working as Cooks, Assistants, Cleaners, Watchmen, Teaching and non- Teaching staff and members of the SC & ST community under the Department of Minority Welfare and Chief Executive Officer, Zilla Panchayath of the State of Karnataka. The issue in the lis does not pertain to the dispute or activities of the Sangha. It is the averment in the petition that members of the Sangha have been entrusted work for a long time albeit without calling for any tender. On 31-07-2024, the 2nd respondent notifies two tenders for supply of manpower to work in various posts in the 2nd respondent, Department of Social Welfare. The tender is called for various posts ranging from data entry operator to sweeper. The total number of posts called for in both the tenders were 635. It is the claim of the petitioner/Sangha that its members are fully trained and rendering services out of the income from the Sangha. The Sangha participates in the tenders by submitting its bids. On 09-09-2024 the technical bids were finalized and on 05-11-2024 financial bids were opened. The petitioner/Sangha submits representations to the Tender Inviting Authority alleging irregularities in the tender procedure. Irregularities projected were that while notifying 635 posts in the tender, the contract awarded to the successful tenderer was for 689 posts i.e., 54 posts over and above the posts notified. Non-consideration of the representation with regard to irregularities in the tender leads the petitioner to this Court in the subject petition seeking quashment of contract awarded in favour of the 5th respondent and seeking a consequential direction to cancel the tender allotted to the 5th respondent and allot the same to the petitioner/Sangha.

3. Facts, in brief, germane in Writ Petition No.107604 of 2024 are as follows:

As observed hereinabove, the petitioner is common in both the petitions. The tenders notified are different. The notice inviting tender in this petition is issued on 22-07-2024 for securing manpower in various posts in the 2nd respondent. The petitioner/Sangha finding itself eligible to participate in the tender submits its bid. On 14-08-2024 technical bids were opened and five bidders including the petitioner were held to be technically qualified. On 21-10-2024, it appears that financial bids of the technically qualified tenderers were opened and the 5th respondent was awarded the contract and work order issued in favour of the 5th respondent was said to be beyond 90 days and therefore, it was illegal. This allegation, inter alia forms the fulcrum of the challenge in the subject petition. The commonality that travels through these petitions is that tenders are notified for securing manpower. In Writ Petition No.107536 of 2024 tender is awarded to the 5th respondent therein. The challenge is to certain terms and conditions in the tender.

4. He

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