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2026 Supreme(Online)(Kar) 1438

THE HIGH COURT OF KARNATAKA
SURAJ GOVINDARAJ, J
FORCEONE SD PRIVATE LIMITED – Appellant
Versus
KARNATAKA POWER TRANSMISSION CORPORATION LIMITED – Respondent
WRIT PETITION NO. 26719 OF 2025 (GM-TEN)



Advocates:
For the Appellants/Petitioners:Sri. Sahil Sood, Advocate for Sri. Mohsin Khan Pathan, Advocate
For the Respondents:Smt. D.J. Rakshitha, Advocate for R1, Sri. K. Shashi Kiran Shetty, Senior Advocate A/W Smt. K.P. Yashodha, AGA for R4, Sri. Venkatanarayana, Advocate for R5

Judicial review in tender matters is limited to evaluating the legality of the decision-making process, not the merits of the bids, requiring strict adherence to eligibility criteria.

Headnote:(A) Constitution of India - Articles 226 & 227 - Writ petition challenging rejection of tender bid - Petitioner claimed illegal non-responsiveness on technical grounds, particularly in relation to GST registration and financial documentation - Requirement for compliance emphasized as essential eligibility criteria - Rejection upheld based on Petitioner’s own disclosures and stated non-compliance - Judicial review limited to decision-making process without evaluating bid merits - Noted principles from Jagdish Mandal v. State of Orissa and related cases. (Paras 1, 9.1, 10.3, 11.1 and 12.1)

(B) Principles of Natural Justice - Applicability of natural justice in tender processes - Communication of rejection and grounds fulfilled equal treatment standards; no requirement for personal hearing or iterative correspondence established - No procedural unfairness found. (Paras 10.4 and 11.12)

Facts of the case:
Writ petition by a company challenging the rejection of its tender bid for a Battery Energy Storage System on grounds of non-responsiveness. The Petitioner alleged lack of compliance notice regarding its technical bid related to GST registration and financial eligibility. (Paras 2, 3, and 6.1)

Findings of Court:
Failure of the Petitioner to comply with mandatory eligibility criteria, including lack of GST registration at the bid stage, resulted in valid rejection. The court determined no unlawful action taken by the tendering authority. (Paras 9, 11.12 and 12.2)

Issues: The main issues included determining whether the Petitioner made a case for judicial review, whether communication of rejection met natural justice standards, and the propriety of the rejection evaluation. (Paras 7 and 10)

Ratio Decidendi: The court clarified that judicial review in tender matters confines to processes, not merits. The absence of necessary compliance by the Petitioner warranted rejection, and no evidence of mala fides was present. (Paras 9.3, 11.1 and 11.10)

Result: Writ petition dismissed.

Table of Content
1. petition details regarding tender process (Para 1 , 2 , 3 , 4)
2. arguments presented by petitioner and respondents (Para 5 , 6)
3. court's analysis on compliance with tender requirements (Para 7 , 8 , 9 , 10 , 11)
4. petition dismissed for lack of compliance (Para 12)

CAV ORDER

1. Petitioner is before the Court seeking for the following reliefs:

i. Writ or certiorari, Mandamus or any other direction or order for calling for records about the invitation to tender dated 11.06.2025 issued by the Respondent No.1 (Annexure-B), bearing No. KPTCL/CGM (TECH)/BESS/25-26/002.

ii. Writ, Order or any other direction or order declaring the bid submitted by the successful bidder (L1) as non-complaint and invalid bid.

iii. Writ of certiorari, Mandamus or any other direction or order declaring the action dated 19.08.2025, wherein the petitioners bid was decided as non- responsive, as illegal, and without any basis (Annexure-D)

iv. Writ of certiorari, Mandamus or any other direction or order to qualify our Bid and direct the KPTCL rehold the reverse auction process in an open and transparent manner with sufficient notice. v. Grant such other relief(s) as this Hon’ble Court deems fit and proper in the present facts of the case.

vi. Grant the costs of these proceedings.

2. The Karnataka Power Transmission Corporation Limited [KPTCL]- Respondent No.1 invited proposal to set up a grid-connected standalone Battery Energy Storage System, for which a Battery Energy Storage System Agreement would be entered into by the State, the bidders being selected through a reverse auction to provide such energy storage facilities to HESCOMs. The Petitioner participated in respect of the tender notification. It being a single-stage bidding process with two envelopes containing technical and financial bids. The tender was issued on 11.06.2025, a pre-bid meeting was held on 18.06.2025, the last date for bid submission was 3.07.2025, and the process was to be completed by 8.07.2025. The Petitioner claims to have submitted the requisite bid documents vide letter dated 8.07.2025 and informed respondent No.1 that an online application had been successfully submitted through the ETS portal, which was acknowledged on 9.07.2025. Petitioner claims that no deficiencies were pointed out in respect of the documents submitted, and, as such, was shocked to learn on 19.08.2025, upon logging on to the portal, that the Petitioner's bid at tender stage-1 was declared non- responsive.

3. The reverse bid auction was held on 19.08.2025 at 5 pm. The Petitioner, on 20.08.2025, came to know that a company by the name PROSTARM Infosystem had won the current bid, and it is in that background that the Petitioner has approached this Court on 29.08.2025 seeking the aforesaid reliefs.

4. Respondent No.1 is the tender issuing authority viz., KPTCL, respondent No.2 is the Karnataka Electricity Regulatory Commission [KERC], Respondent No.3 is the Karnataka State Load Dispatch Centre, Respondent No.4 is the Government of Karnataka, Energy Department and Respondent No.5 is the Ministry of Power.

5. Sri.Sahil Sood Learned counsel appearing for the Petitioner, would submit that,

5.1. No reasons have been communicated either through the tender portal or through any email provided by the Petitioner at the time of rejection, and it is for that reason that the rejection not having been communicated, the Petitioner could not take the necessary steps. The rejection without information to the Petitioner is bad in law and is required to be set aside.

5.2. His submission is that there is a clear violation of natural justice and infirmity in the decision- making process, therefore rendering the writ petition maintainable.

5.3. The Petitioner having submitted all the bid documents in full compliance, this Court ought to exercise its extraordinary jurisdiction, and in that regard, he relies upon the decision of the Hon’ble Apex court in Jagdish Mandal v. State of Orissa , (2007) 14 SCC 517 more particularly

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