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RESERVED ON : 26.09.2025 PRONOUNCED ON : 09.10.2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 09TH DAY OF OCTOBER 2025 BEFORE THE HON’BLE MR. JUSTICE B. M. SHYAM PRASAD WRIT PETITION NO.27528/2025 (GM-TEN)
BETWEEN :
M/S AURASHINE ESSENTIALS PVT LTD FORMERLY M/S ADITI INTERNATIONAL NO.212, HUBTOWN SOALRIES NS PADKE MARG, ANDHERI EAST MUMBAI-400069 REPRESENTED BY ITS MANAGING DIRECTOR MR BHARATH SHETTY.
INCORPORATED UNDER SEC 8 OF COMPANIES ACT, 2013.
…PETITIONER (BY SRI.BIPIN HEGDE, ADVOCATE)
AND:
1 . M/S KARNATAKA SOAPS AND DETERGENTS LIMITED NO.27, INDUSTRIAL SUB-URB BENGALURU-PUNE HIGHWAY RAJAJINAGAR BENGALURU-560055. REPRESENTED BY ITS MANAGING DIRECTOR.
A COMPANY REGISTERED UNDER COMPANIES ACT 1956.
2 . M/S MADHO AROMATICS AND SPICES PVT LTD NO.1/103, ORANGE COUNTY AHINS KHAND 1, INDIRAPURAM GHAZIABAD-2011014.
INCORPORATED UNDER COMPANIES ACT, 2013.
REPRESENTED BY MANAGING DIRECTOR
3 . M/S KARNATAKA AROMAS KCI CHAMBERS NO.160, 3RD FLOOR
5TH MAIN ROAD, CHAMRAJPET BENGAKLURU-560018 REPRESENTED BY VINAYA S RAJ.
REGISTERED UNDER INDIAN PARTNERSHIP ACT 1937.
…RESPONDENTS (BY SRI. K. SHASHI KIRAN SHETTY, ADVOCATE GENERAL A/W SRI. MAHESH CHOWDARY., ADVOCATE FOR SMT. MANJULA D., ADVOCATE FOR C/R1;
SRI. MADHAV B KASHYAP., ADVOCATE FOR R2;
SRI. P PRASANNA KUMAR., ADVOCATE A/W SRI. RAHUL KRISHNA REDDY., ADVOCATE FOR R3)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI AND QUASH THE LETTER OF INTENT DATED 30.8.2025 ISSUED IN FAVOUR OF 3RD RESPONDENT BY THE 1ST RESPONDENT IN RESPECT OF TENDER NOTIFICATION NO.KSDL/2025- 26/IND0870/CALL-2 DATED 13-08-2025 ANNEXURE-B; ISSUE A WRIT IN THE NATURE OF MANDAMUS DECLARING THAT THE TECHNICAL BID OF THE 2ND RESPONDENT AS ILLEGAL AND CONSEQUENTLY HOLD THAT THE RESERVE AUCTION WHICH TOOK PLACE ON 29/08/2025 AS ILLEGAL; ISSUE A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE 1ST RESPONDENT TO AWARD THE TENDER NOTIFICATION IN PROCUREMENT OF 7200 KGS OF SANDALWOOD OIL IN ACCORDANCE WITH THE KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999 IN FAVOUR OF PETITIONER VIDE ANNEXURE-G.
THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED, AND COMING ON FOR PRONOUNCEMENT OF ORDERS THIS DAY, THE COURT DELIVERED THE FOLLOWING:
CORAM: HON'BLE MR.JUSTICE B.M. SHYAM PRASAD
RESERVED ON : 26.09.2025 PRONOUNCED ON : 09.10.2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 09TH DAY OF OCTOBER 2025 BEFORE THE HON’BLE MR. JUSTICE B. M. SHYAM PRASAD WRIT PETITION NO.27528/2025 (GM-TEN)
BETWEEN :
M/S AURASHINE ESSENTIALS PVT LTD FORMERLY M/S ADITI INTERNATIONAL NO.212, HUBTOWN SOALRIES NS PADKE MARG, ANDHERI EAST MUMBAI-400069 REPRESENTED BY ITS MANAGING DIRECTOR MR BHARATH SHETTY.
INCORPORATED UNDER SEC 8 OF COMPANIES ACT, 2013.
…PETITIONER (BY SRI.BIPIN HEGDE, ADVOCATE)
AND:
1 . M/S KARNATAKA SOAPS AND DETERGENTS LIMITED NO.27, INDUSTRIAL SUB-URB BENGALURU-PUNE HIGHWAY RAJAJINAGAR BENGALURU-560055. REPRESENTED BY ITS MANAGING DIRECTOR.
A COMPANY REGISTERED UNDER COMPANIES ACT 1956.
2 . M/S MADHO AROMATICS AND SPICES PVT LTD NO.1/103, ORANGE COUNTY AHINS KHAND 1, INDIRAPURAM GHAZIABAD-2011014.
INCORPORATED UNDER COMPANIES ACT, 2013.
REPRESENTED BY MANAGING DIRECTOR
3 . M/S KARNATAKA AROMAS KCI CHAMBERS NO.160, 3RD FLOOR
5TH MAIN ROAD, CHAMRAJPET BENGAKLURU-560018 REPRESENTED BY VINAYA S RAJ.
REGISTERED UNDER INDIAN PARTNERSHIP ACT 1937.
…RESPONDENTS (BY SRI. K. SHASHI KIRAN SHETTY, ADVOCATE GENERAL A/W SRI. MAHESH CHOWDARY., ADVOCATE FOR SMT. MANJULA D., ADVOCATE FOR C/R1;
SRI. MADHAV B KASHYAP., ADVOCATE FOR R2;
SRI. P PRASANNA KUMAR., ADVOCATE A/W SRI. RAHUL KRISHNA REDDY., ADVOCATE FOR R3)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI AND QUASH THE LETTER OF INTENT DATED 30.8.2025 ISSUED IN FAVOUR OF 3RD RESPONDENT BY THE 1ST RESPONDENT IN RESPECT OF TENDER NOTIFICATION NO.KSDL/2025- 26/IND0870/CALL-2 DATED 13-08-2025 ANNEXURE-B; ISSUE A WRIT IN THE NATURE OF MANDAMUS DECLARING THAT THE TECHNICAL BID OF THE 2ND RESPONDENT AS ILLEGAL AND CONSEQUENTLY HOLD THAT THE RESERVE AUCTION WHICH TOOK PLACE ON 29/08/2025 AS ILLEGAL; ISSUE A WRIT IN THE NATURE OF MANDAMUS DIRECTING THE 1ST RESPONDENT TO AWARD THE TENDER NOTIFICATION IN PROCUREMENT OF 7200 KGS OF SANDALWOOD OIL IN ACCORDANCE WITH THE KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999 IN FAVOUR OF PETITIONER VIDE ANNEXURE-G.
THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED, AND COMING ON FOR PRONOUNCEMENT OF ORDERS THIS DAY, THE COURT DELIVERED THE FOLLOWING:
CORAM: HON'BLE MR.JUSTICE B.M. SHYAM PRASAD
CAV ORDER
The first respondent has issued a notification dated 13.08.2025 [Tender Notification] inviting offers for the supply of 7200 kgs of sandalwood oil, and the last date for submission of the bids is 22.08.2025. The first respondent’s case1 is that the selection process would be conducted through the Tender-cum-Reverse Auction Mechanism. The petitioner, the second and third respondents have submitted samples on 20.08.2025 to 21.08.2025. A Technical Committee has qualified the petitioner, the second and third respondents. The financial bids are opened on 28.08.2025. The first respondent, because there were three qualified bidders in the petitioner and second and third respondents, has initiated an Electronic Reverse Auction [the Reverse Auction] as contemplated under Rule 25-A of the 1
Karnataka Transparency in Public Procurement Rules, 2000 [for short, the KTPP Rules].
2. The petitioner and the afore respondents have participated even in the Reverse Auction held on 29.08.2025. If the Petitioner was L1 in terms of the price quoted in the bid, the third respondent is L1 in quoting the price under the Reverse Auction. The first respondent has issued the Letter of Intent [LOI] dated 30.08.2025 to the third respondent2. The petitioner is aggrieved by the first respondent’s decision to issue the LOI dated 30.08.2025 in favour of the third respondent, and hence, the petitioner has questioned this decision while seeking declaration that the first respondent could not have qualified the second respondent leading to Reverse Auction and for directions to the first respondent to award the tender to the petitioner.
2
3. The petitioner’s grievance with the first respondent’s decision to issue the LOI dated 30.08.2025 to the third respondent is premised on the ground that the second respondent’s bid is treated as responsive only to justify a Reverse Auction; and to support this ground it is canvassed that [i] the Tender Accepting Authority could have selected a vendor in the Reverse Auction only if there are three and more responsive bids, [ii] there could not have been Reverse Auction because only the petitioner and the third respondent have submitted responsive bids, [iii] the first respondent has initiated Reverse Auction just a day after the financial bids are opened when the stipulation under the KTPP Rules is that Reverse Auction must begin on the third day excluding the date on which the financial bids are opened, This Court, 10.09.2025 recording the submissions, has directed
The submissions on behalf of the petitioner:
4. Sri Bipin Hegde, the learned counsel for the petitioner, in elaboration on why the second respondent’s bid is non-responsive argues thus.
4.1 The Tender Notification stipulates, amongst others, that a bidder as a Non-Micro or Small Enterprises Manufacturer [Non-MSE Manufacturer]] should have supplied a quantity not less than 80% of the requirement [5,760 kgs] of sandalwood in any of the last three years i.e., 2022-23, 2023-24 and 2024-25 and a Micro or Small Enterprises Manufacturer [MSE Manufacturer], as certified by NSIC, should have supplied not less than 40% of the requirement in any of the last preceding two years i.e.,2023-24 and 2024-25 [2,808 kgs]. If the tenderer is an authorised representative or a trader, the stipulation is that the supply should be at an average of 30% of the requirement [2,160 kg
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