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2022 Supreme(Online)(Kar) 34370

1

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 20TH DAY OF APRIL 2022

BEFORE

THE HON'BLE MR.JUSTICE S.G.PANDIT

WRIT PETITION NO.2557 OF 2021(GM-TEN)

BETWEEN:

WISTRON INFOCOMM MANUFACTURING

(INDIA) PVT LTD

THROUGH THE DIRECTOR

MR SENTHIL KUMAR

NO.30A, 2ND PHASE

KIADB MAIN ROAD, CHOKKASANDRA

PEENYA INDUSTRIAL AREA

BENGALURU-560058

KARNATAKA.

...PETITIONER

(BY SRI. D.R. RAVISHANKAR, SENIOR COUNSEL A/W

SRI.GAURAV SINGH GAUR., ADV.)

AND:

ITI LIMITED

THROUGH CHAIRMAN AND

MANAGING DIRECTOR

CIVIL ENGINEERING DEPARTMENT

ITI BHAVAN, DOORAVANINAGAR

BENGALURU-560016

KARNATAKA

&RESPONDENT

(BY SRI. M.S. NARYAN, ADV.)

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THIS WRIT PETITION IS FILED UNDER ARTICLES

226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING

TO DIRECT THE RESPONDENT TO REFUND THE EARNEST

MONEY DEPOSIT / BID SECURITY OF RS.1,00,00,000/-

(RUPEES

ONE

CRORE

ONLY)

SUBMITTED

BY

THE

PETITIONER ON 08.06.2020 THROUGH DEMAND DRAFT

NO.353604 DTD. 03.06.2020 DRAWN ON CITIBANK

ALONG WITH THE TECHNICAL BID PURSUANT TO NOTICE

INVITING TENDER FOR SELECTION OF ANCHOR UNIT(S)

ISSUED BY THE RESPONDENT ON 18.05.2020 VIDE ANNX-

C AND AMENDMENT TO NOTICE INVITING TENDER

BEARING DTD. 24.04.2020 / 18.05.2020 ISSUED BY THE

RESPONDENT ON 01.06.2020 VIDE ANNX-D AND ETC.

THIS

WRIT

PETITION,

COMING

ON

FOR

PRELIMINARY HEARING IN 8B9 GROUP, THIS DAY, THE

COURT MADE THE FOLLOWING:

The petitioner is before this Court under Articles 226

and 227 of the Constitution of India praying for the

following relief:

<a)

Issue appropriate Writ directing the

Respondent to refund the Earnest Money

Deposit / Bid Security of Rs.1,00,00,000/-

(Rupees One Crore Only) submitted by the

petitioner on 08.06.2020 through Demand

Draft No.353604 dated 03.06.2020 drawn on

Citibank along with the technical bid pursuant

to Notice Inviting Tender for selection of

3

anchor

unit(s)

bearing

REF:C/DGM-

C/EMC/NIT/2020/1

issued

by

the

Respondent

on

18th

May,

2020

as

per

Annexure-C and Amendment to Notice

Inviting

Tender

bearing

Ref:C/DGM-

C/EMC/NIT/2020/1 DATED 20-04-2020/ 18-

05-2020 issued by the Respondent on

01.06.2020 as per Annexure-D.=

2.

Heard learned Senior counsel Sri D.R.Ravishankar,

appearing on behalf of Sri Jagadish Kumar, learned

counsel for the petitioner and Sri M. S. Narayan, learned

counsel for the respondent.

3.

Learned

Senior

counsel

would

submit

that

respondent/ITI issued tender notice inviting tenders from

the experienced and qualified Anchor Unit(s), Electronic

Manufacturing

Company/Developers,

for

establishing

Electronic Manufacturing Clusters and related amenities

etc., at ITI Limited, Dooravaninagar, Bengaluru.

4.

In pursuance of the tender notice, the petitioner is

said to have submitted his tender along with Earnest

4

Money Deposit of Rs.1,00,00,000/- on 08.06.2020 through

Demand Draft drawn on City Bank.

5.

Learned Senior counsel would submit that the

respondent did not accept the tender submitted by the

petitioner and the petitioner was asked to submit revised

offer through letter dated 03.07.2020 (Annexure-F). It is

submitted that at any point of time, the petitioner could

withdraw his tender.

6.

Learned Senior counsel submits that the petitioner

was not interested in submitting the revised offer and as

such they have not submitted the revised offer. In that

circumstance, the learned Senior counsel for the petitioner

would submit that the petitioner would be entitled for

refund of Earnest Money Deposit.

7.

Learned Senior counsel invites attention of this Court

to conditions in the tender document and submits that the

respondent could forfeit the Earnest Money Deposit only if

the petitioner withdraws the tender submitted.

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8.

Learned Senior counsel further invites the attention

of this Court to Clause-7(i) and submits that if any bid is

not accepted/rejected by ITI, the bid security paid by that

bidder shall be refunded without interest. Thus, he prays

for a direction to the respondent to consider the

petitioner9s request for refund of Earnest Money Deposit.

9.

Per contra, learned counsel for respondent Sri M. S.

Narayan submits that after having several meetings and

discussions, the petitioner was asked to submit revised

offer which the petitioner failed to submit. Learned counsel

referring to statement of objection submits that the

petitioner had expressed his inability to proceed with the

project which amounts to withdrawal of his tender. Thus,

he submits that since the petitioner has withdrawn his

tender, he would not be entitled for refund of Earnest

Money Deposit.

10.

Learned counsel for respondent invites attention of

this Court to sub-clause (e) and (h) of Clause VII of bid

security. If for any reason, any selected bidder declines to

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take on rent one or more of the buildings, the bid security

furnished by the Anchor Unit/Bidder shall stand forfeited.

Placing reliance on clause (h) of clause VII, learned

counsel would submit that since the petitioner has

withdrawn his bid, the security deposit is liable to be

forfeited.

11.

Having heard the learned Senior counsel for the

petitioner and learned counsel for the respondent, the only

point which falls for consideration is whether the petitioner

would be entitled for refund for earnest money deposit.

12.

Answer to the above point is in the affirmative for

the following reasons.

There is no dispute with regard to submission of

tender by the pet

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