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2025 Supreme(Kar) 1893

IN THE HIGH COURT OF KARNATAKA AT DHARWAD
S.G.PANDIT, GEETHA K.B., JJ.
Suma Pradeep Yeli W/o Pradeep Yeli – Appellant
Versus
The State of Karnataka – Respondent
W.A. Nos. 100741, 100751 of 2025
Decided On : 17-12-2025

Advocates Appeared:
For the Appellants : Ashok Harnahalli, Anil Kale
For the Respondents: Sharad V. Magadum, Sunil S. Desai, S.V. Yaji

Natural justice mandates that necessary parties must be heard before an adverse order is issued, making their non-inclusion in proceedings fatal to the case.

Headnote:(A) Karnataka High Court Act, 1961 - Section 4 - Karnataka Transparency in Public Procurement Act, 1999 - Karnataka Transparency in Public Procurement Rules, 2000 - Writ appeals regarding quashing of tender notification for sand blocks - Non-parties who received provisional acceptance of tender were not made party to the writ petition, violating principles of natural justice - The learned Single Judge quashed the tender document based on the expiry of its validity period but without considering the non-parties' interests. (Paras 1, 8, 22, 24)

(B) Natural Justice - Necessary parties - Order affecting an individual's rights cannot be made without providing them an opportunity to be heard - The court emphasized that non-joinder of necessary parties is fatal to the proceedings. (Paras 18, 22)

Facts of the case:
The case involved a tendering process for the disposal of sand blocks where non-parties were successful bidders. The writ petition challenged the allocation process post-expiry of the tender validity, leading to the quashing of the tender notification by the learned Single Judge without considering the successful bidders' claims.

Findings of Court:
The Court determined that the non-parties were necessary parties to the writ proceedings and that their exclusion constituted a breach of natural justice principles, warranting the quashing of the learned Single Judge's order.

Issues: The key issues were whether the non-parties were necessary parties to the writ petition and how to address the consequences of their non-inclusion.

Ratio Decidendi: The court ruled that parties affected by judicial decisions must be heard, upholding the principle that no order should adversely affect a person without providing them an opportunity to present their case.

Result: Writ appeals allowed; the order of the learned Single Judge set aside and the matter remitted for fresh disposal.

Table of Content
1. writ appeals challenging prior court order. (Para 1 , 2 , 3 , 4)
2. details of tender process and parties involved. (Para 5 , 6 , 20)
3. validity of tender process and non-joinder of parties. (Para 8 , 14)
4. importance of due process and principles of natural justice. (Para 10 , 15 , 22)
5. final order and directive for fresh hearing. (Para 24 , 25)

JUDGMENT :

S.G. PANDIT, J.

1. In W.A.No.100741/2025, the appellants – non-parties to the writ petition are before this Court under Section 4 of the Karnataka High Court Act, 1961 (for short, ‘1961 Act’) questioning the order dated 03.11.2025 in W.P.No.105029/2025, whereunder, Annexure-A dated 25.02.2025 inviting e-tenders for disposal of River Thungabhadra Sand Blocks in IV, V and Higher Order Streams/Rivers is quashed.

2. In W.A.No.100751/2025, respondent No.5 before the learned single judge in W.P.No.105029/2025 is before this Court under Section 4 of the 1961 Act, questioning the same order which is under challenge in the above-stated Writ Appeal.

3. In W.A.No.100741/2025, along with the Writ Appeal, I.A.No.1/2025 is filed under Section 151 of the Code of Civil Procedure, 1908 seeking leave to prosecute the appeal. I.A.No.4/2025 is filed under Order XLI Rule 27 of CPC seeking leave to produce documents in support of their appeal. Both the I.As would be considered during the course of this order.

4. The parties would be referred to as per their ranking in the writ petition before the learned Single Judge and the appellants in W.A.No.100741/2025 would be referred to as non-parties.

5. Brief facts of the case are that, a tender notice dated 25.02.2025 (Annexure-A) was issued by the respondent No.4, Senior Geologist and Member Secretary, District Sand Committee, Havari, inviting e-tenders from the Person/Company/Firm registered under the e- procurement for disposal of River Thungabhadra Sand Blocks in IV, V and Higher Order Streams/Rivers. The non- parties submitted their tender for Block Nos.V and II respectively; whereas, the petitioners in both the writ appeals applied for Block Nos.IV and V. 01.04.2025 was the date fixed for opening of technical bids on the e-procurement portal and 09.04.2025 was the date fixed for opening of financial bids of technically qualified bidders.

6. It is stated that since all the tenderers/participants had quoted identical or same price, the tender inviting authority decided to allot or dispose of the Sand Blocks by drawl of lottery. Accordingly, notice dated 05.06.2025 was issued to all the participants fixing the date of drawal of lottery on 13.06.2025, which was postponed to 16.07.2025. It is stated that in the lottery, all the tenderers who had technically qualified were put into lots and lottery was drawn. In the lottery, the non-parties were successful and accordingly provisional acceptance letter dated 23.07.2025, Document No.5 and 6 were issued to the non-parties. Respondent No.5 who was successful bidder in respect of Block No.VI, who was also not made party in the writ petition, got himself impleaded by Order dated 18.09.2025 of the learned Single Judge.

7. On 23.07.2025, the petitioner filed writ petition before this Court with the following prayers:

“1. Issue a writ of mandamus declaring all the process of tender in pursuance of the tender notification dated 25.02.2025 vide Annexure-A after expiry of validity period as illegal and arbitrary, in the interest of justice and equity.

2. Issue a direction to the 3rd and 4th respondent to call for the fresh tender for Sandy Quarry Lease in terms of Karnataka Transparency in Public Procurement (KTTP) Act, 1999 and allied rules, in the interest of justice and equity.”

8. The learned Single Judge, on hearing the parties to the writ petition, accepting the contention of the petitioner, held that the validity period of 90 days of the tender has expired and as the draw of lottery to award contract has been drawn subsequent to expiry of 90 days, quashed the tender notification dated 25.02.20

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