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KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999

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S.1 Short title and commencement.

       (1) This Act may be called the Karnataka Transparency in Public Procurements Act, 1999.
       
       (2) It shall be deemed to have come into force with effect from the Fourth day of October, 2000.


S.2 Definitions

       In this Act, unless the context otherwise requires.
       (a) "Construction works" means putting up, demolishing, repairs or renovation of buildings, roads, bridges or other structures including fabrication of steel structures and all other civil works;
       
       (b) "Goods" means machinery, motor vehicles, equipment, furniture, articles of stationery, textiles raw materials, drugs, scientific instruments, chemicals food grains, oil and oilseeds or other commodity required for consumption, use or distribution by a procurement entity in discharge of its public duties;
       
       (c) "Government" means the State Government;
       
       (d) "Procureme

Karnataka Transparency in Public Procurement Act, 1999 – Section 2: Legal Commentary

Introduction

Section 2 of the Karnataka Transparency in Public Procurement Act, 1999 (KTPP Act) is the Definitions Clause. It establishes the foundational interpretive framework for the entire Act by defining key terms that govern public procurement in Karnataka. The Act came into force on 4th October, 2000, and was enacted to ensure transparency, fairness, and efficiency in public procurement [Source ].

What Does Section 2 Says

Section 2 provides a comprehensive set of definitions for terms used throughout the Act. These include, but are not limited to:- "Procurement Entity": Defined in Section 2(d) as any Government Department, State Government Undertaking, Local Authority, or other body established by the State Government [Source ].- "Tender": Refers to the process of inviting offers for goods and services.- "Bidder" / "Tenderer": A person or entity that submits a bid or tender.- "Contract": The agreement resulting from the procurement process.- "Goods" and "Services": The objects of procurement covered under the Act [Source ].

The section ensures that terms are consistently interpreted across the Act, minimizing ambiguity in a domain critical to state governance and anti-corruption efforts.

Essential Ingredients

The essential function of Section 2 is to demarcate the scope of the Act by precisely defining its operative vocabulary. Key ingredients include:1. Clarity and Precision: Each definition is crafted to provide a clear, actionable meaning for judicial and administrative interpretation.2. Comprehensive Coverage: The definitions cover the entire lifecycle of procurement—from the entity initiating the process to the final contract.3. Interlinkage with Other Provisions: The definitions in Section 2 are foundational for interpreting substantive provisions regarding tender processes, debarment, and penalties elsewhere in the Act.

Scope of Section

The scope of Section 2 is exhaustive and definitional. It applies to:- All procurement activities undertaken by entities listed under "Procurement Entity."- All stages of procurement, including invitation, processing, acceptance, and rejection of tenders.- The interpretation of the Act as a whole, serving as the primary interpretive aid under the general principles of statutory interpretation [Source ].

Punishment for Section

Section 2 itself does not prescribe any punishment, as it is a definitional section. However, the Act as a whole provides for punitive measures for violations. Specifically:- Whoever contravenes the provisions of this Act or the rules made thereunder shall be punishable with imprisonment for a term which may extend to three years [Source ].- The Procurement Entity may debar tenderers for a period not exceeding three years from participation in its tenders [Source ].

Legal Comments

  • "Definitions Clause" - Section 2 functions as the interpretive backbone of the KTPP Act, ensuring that terms like "Procurement Entity" and "Tender" have uniform meaning across the statute. - [Source ]
  • "Procurement Entity" - The definition of "Procurement Entity" in Section 2(d) is critical as it determines the ambit of State control over public procurement, covering Government Departments, State Undertakings, and Local Authorities. - [Source ]
  • "Transparency and Accountability" - The Act, through Section 2, aims to streamline procedures in Public Procurement and ensure accountability, reflecting the legislature's intent to curb corruption and inefficiency. - [Source ]
  • "Applicability" - The definitions in Section 2 apply to all procurement activities within the State of Karnataka, ensuring that the Act's provisions are uniformly applicable to all government entities. - [Source ]
  • "Interpretation" - As a general rule of statutory interpretation, the definitions provided in Section 2 must be construed strictly to advance the object of the legislature, which is to ensure transparency in public procurement. - [Source ]
  • "Debarment" - The Act empowers the Procurement Entity to debar tenderers for up to three years, a sanction that relies on the precise definitions in Section 2 to determine who qualifies as a "Tenderer" or "Bidder." - [Source ]
  • "Punishment" - The penalty of imprisonment up to three years for contraventions is a deterrent measure that underscores the seriousness with which the Act treats violations of its procedural mandates. - [Source ]
  • "Scope of Procurement" - The Act covers both goods and services, and Section 2 ensures that these terms are defined broadly enough to encompass all forms of public procurement. - [Source ]
  • "Legal Framework" - Section 2 establishes the legal framework for public procurement in Karnataka, aligning with the broader national objective of promoting transparency and reducing corruption in government contracts. - [Source ]
  • "Rule of Construction" - It is a well-established principle that the definitions in a statute should be interpreted in the context of the Act's overall object. Section 2 of the KTPP Act must be read harmoniously with other provisions to ensure a coherent legal regime. - [Source ]

S.3 Provisions not to apply to certain projects.

       The provisions of this Art insofar as they are inconsistent with the procedure specified in respect on the Projects funded by International Financial Agencies or Projects cover. end under International Agreements, shall not apply to procurement of goods or services for such project.


S.4 Exceptions to applicability.

       The provisions of Chapter II shall not apply to Procurement of goods and services.
       (a) During the period of natural calamity or emergency declared by the Government;
       
       (b) Where the goods or services are available from a single source or where a particular supplier or contractor has exclusive rights in respect of the goods or services or construction work and no reasonable alternatives or substitutes exist:
       
       Provided that for the purpose of this clause there shall be a committee of three experts consisting of one technical representative of the procuring qntity one technical representative of the Government organisation dealing with similar procurement and one representative from a reputed Academic or

Karnataka Transparency in Public Procurement Act, 1999 – Section 4

Introduction

Section 4 of the Karnataka Transparency in Public Procurement Act, 1999 ("KTPP Act") enumerates specific exceptions under which the provisions of Chapter II of the Act—which mandate competitive bidding and tender procedures—do not apply to procurement of goods and services by the State Government and its agencies.

What Does Section Say

Section 4 provides a list of circumstances or categories of procurement where the mandatory tender process and other procedural requirements of Chapter II are exempted. These exceptions are intended to address situations of urgency, emergency, sole-source availability, or specific governmental operations.

Essential Ingredients

  • The procurement must fall under one of the categories listed in Section 4.
  • The exemption applies to procurement of goods and services by the State Government, Public Sector Undertakings, Government agencies, and other entities specified by the Government.
  • The exception is temporary in nature for certain categories (e.g., three-year exemption for PSUs).

Scope of Section

  • Applies to procurements made by the State Government, Public Sector Undertakings, Government agencies, and other institutions specified by the Government.
  • Covers a range of scenarios including natural calamities, emergencies, sole-source procurements, and specific government-notified categories.
  • The exemption from Chapter II means that the procurement entity is not required to follow the tendering process prescribed in the Act for the specified categories.

Punishment for Section

  • Whoever contravenes the provisions of this Act or the rules made thereunder shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both.

Legal Comments

  • "Government Procurement" - Section 4 provides exceptions for the State Government and its agencies to procure goods and services without following the mandatory tender process prescribed in Chapter II of the Act. - [ N. G. Puttaswamy VS State Of Karnataka - 2009 0 Supreme(Kar) 27]
  • "Public Sector Undertakings" - Public Sector undertakings, Government agencies and such other institutions specified by Government are exempted from the application of Chapter II for a temporary period of three years from the date of commencement of the Act (from 4.10.2000 to 4.10.2003). - [ N. G. Puttaswamy VS State Of Karnataka - 2009 0 Supreme(Kar) 27]
  • "Emergency Procurement" - During the period of natural calamity or emergency declared by the Government, it is not necessary to follow the procedure prescribed under the Act for procuring goods or services. - [ NSoft(India) Service Pvt. Ltd. VS Bescom Ltd. - 2008 0 Supreme(Kar) 460]
  • "Sole Source Procurement" - Where the goods or services are available from a single source or where a particular supplier or contractor has exclusive rights in respect of the goods or services or construction work and no reasonable alternatives or substitutes exist, then it is not necessary to follow the procedure prescribed under the Act. - [ NSoft(India) Service Pvt. Ltd. VS Bescom Ltd. - 2008 0 Supreme(Kar) 460]
  • "Expert Committee" - Before invoking the exception for sole-source procurement, there should be a finding by a competent authority that the goods or services are available only from a single source or a particular supplier or a contractor who has exclusive rights. For that purpose the statute provides for constitution of a committee of three experts. - [ NSoft(India) Service Pvt. Ltd. VS Bescom Ltd. - 2008 0 Supreme(Kar) 460]
  • "Section 4(b)" - Section 4(b) requires that before a contract could be awarded without calling for tender, the procurement entity must satisfy the requirements prescribed, including the appointment of an expert committee to consider whether the goods or services are available from a single source. - [ NSoft(India) Service Pvt. Ltd. VS Bescom Ltd. - 2008 0 Supreme(Kar) 460]
  • "Section 4(g)" - Section 4(g) states that in respect of specific procurements as may be notified by the Government from time to time, Chapter II would not apply. It must be for a specific procurement and must be notified by the State Government. It cannot apply for all procurements and cannot be for any length of time or eternally. - [ Shankar V. VS Secretary, Urban Development Authority - 2015 0 Supreme(Kar) 251]
  • "Chapter II Exclusion" - The object of Section 4 is to exclude Chapter II from the procurement of certain goods and services having regard to the circumstances mentioned in those clauses. - [ Shankar V. VS Secretary, Urban Development Authority - 2015 0 Supreme(Kar) 251]
  • "Chapter II-A Exclusion" - When once any of the clauses under Section 4 of the Act is invoked by the State Government, it would exclude applicability of not only Chapter II of the Act, but also Chapter II-A of the Act. - [ Shankar V. VS Secretary, Urban Development Authority - 2015 0 Supreme(Kar) 251]
  • "Contract Quashed" - Contracts awarded to Land Army Corporation and another, in 2007, long after exemption had ceased to be operative, for execution of works and for making supplies, valuing more than rupees five lakhs without calling for tenders on ground that they are Government agencies is without authority of law, and is liable to be quashed. - [ N. G. Puttaswamy VS State Of Karnataka - 2009 0 Supreme(Kar) 27]
  • "Illegal Award" - The award of contract to the second respondent in preference to the petitioner who appears to have all the requisite qualification is a clear case of preferring a bidder who does not satisfy the qualification prescribed by the procuring entity, and is liable to be quashed. - [ NSoft(India) Service Pvt. Ltd. VS Bescom Ltd. - 2008 0 Supreme(Kar) 460]
  • "Punishment for Contravention" - Whoever contravenes the provisions of this Act or the rules made thereunder shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both. -
  • "Procurement Portal" - The Karnataka Transparency in Public Procurement Act, 1999 mandates that procurement activity be conducted on the Karnataka Public Procurement portal. -
  • "Tender Documents" - The tender documents and the contract shall include a clause for payment of liquidated damages and penalty payable by the tenderer in the event of non-compliance. -
  • "Amendment" - The Karnataka Transparency in Public Procurements Act, 1999 (Karnataka Act 29 of 2000) has been amended by Karnataka Act No. 19 of 2021 to increase the limit for value of procurement. -
  • "Applicability" - The Act applies to all procurements of goods and services by the State Government and its agencies, with specific exceptions provided under Section 4. -

S.5 Procurement other than by tender prohibited.

       On and from the date of commencement of this Act no Procurement Entity shall procure goods or services except by inviting tenders for supply.


S.6 Procurement Entities to follow procedure.

       No tender shall be inited, processed or accepted by a Procurement Entity after the commencement of this Ordinance except in accordance with the procedure laid down in this Act or the rules made thereunder.


Legal Comments on Karnataka Transparency in Public Procurement Act, 1999 – Section 6

Introduction

Section 6 of the Karnataka Transparency in Public Procurement Act, 1999 ("KTPP Act") is a pivotal provision that governs the procedure for procurement of goods and services by state government entities and instrumentalities. It mandates a transparent, competitive bidding process through the invitation and acceptance of tenders, aiming to eliminate arbitrariness, ensure fair play, and promote accountability in public spending. The section has been the subject of extensive judicial interpretation and has also undergone legislative amendments to broaden its scope and effectiveness.

What Does Section 6 Say

Section 6 primarily requires that all contracts by the Government or an instrumentality of the State be granted only through public auction or by inviting tenders, after advertising the same in well-known newspapers having wide circulation. It establishes the fundamental principle that procurement must be transparent, giving all eligible persons an opportunity to participate in the bidding process. The section also provides for the reservation of a percentage of tenders for Scheduled Caste/Scheduled Tribe categories and sets out the procedure for the tender calling authority, including the power to accept or reject tenders.

Essential Ingredients

  • Obligation to invite tenders: Procurement entities are required to invite tenders for the supply of goods and services, ensuring wide publicity and access to all eligible bidders.
  • Transparency and publicity: Tenders must be advertised in well-known newspapers with wide circulation to ensure all eligible persons have an opportunity to participate.
  • Reservation for SC/ST: A reserved portion of tenders (17.15% as amended) must be set aside for contractors belonging to Scheduled Caste/Scheduled Tribe categories.
  • Tender acceptance process: The tender accepting authority has the right to accept or reject tenders, and provisional acceptance is subject to the terms and conditions of the tender notification.
  • Cancellation of tenders: The tender calling authority has the right to cancel the tender at any time before passing an order of acceptance.

Scope of Section 6

The scope of Section 6 extends to all procurement activities by the Government and its instrumentalities in Karnataka. It applies to the lease of public assets (such as fishing rights in public tanks, ponds, and reservoirs), the supply of goods and services, and the execution of works. The section has been interpreted to cover both pre-contractual and contractual stages of procurement. The Karnataka High Court has held that the policy and scheme formulated under the Act contemplate that leases and contracts can be granted only by tender-cum-auction after giving wide publicity. The reservation provisions under Section 6 apply to construction works as defined under the Act, but not to the supply of manpower or work that does not fall within the definition of "Construction Works" (such as repairing transformers).

Punishment for Section

The Act provides penal provisions for violations of its terms. While Section 6 itself primarily sets out procedural obligations, any violation of the Act and its Rules attracts penal consequences under Section 23 of the Act. The Act also empowers the Government to give appropriate directions to procurement entities and authorities to secure compliance with its provisions.

Legal Comments

S.7 Tender Bulletin Officers.

       (1) The Government may by notification appoint an officer not below the rank of a Deputy Secretary to Government of the concerned department to be the State Tender Bulletin Officer for the State in respect of that department where the procurement of that department covers more than one district.
       
       (2) Deputy Commissioner of the District shall be the District Bulletin officer.


S.8 Publication of Tender Bulletin.

       (1) The State Tender Bulletin Officer, or as the case may be, the District Tender Bulletin Officer shall on receipt of intimation relating to notice of invitation of tender from tenderin inviting authority or information relating to details of acceptance of tender under Section 13 or rejection of tender under Section 14 from the tender Accepting Authority, publish within the prescribed time, the State Tender Bulletin or as the case may be District Tender Bulletin.
       
       (2) The Tender Bulletin shall be made available for sale in the office of the Tender Bulletin Officer and in such other places as the Tender Bulletin Officer deems fit to make available.


S.9 Tender Inviting Authority and Tender Accepting Authority.

       The Procurement Entity may, by order, appoint.
       (i) one or more of officers or a Committee of Officers to be the Tender Inviting Authority for any specified area, specified procurement or specified class of goods or services; and
       
       (ii) one or more of officers or a Committee of Officers to be the Tender Accepting Authority for any specified area or Specified Procurement, specified class of goods and services:
       
       Provided that where a multi-member Committee is already appointed for any Procurement Entity for discharging the function of accepting tenders, such Committee shall be deemed to be a Tender Accepting Authority appointed under this Act.


S.10 Tender Security Committee.

       The Tender Accepting Authority may constitute a Tender Scrutiny Committee consisting of such persons as it deems fit to scrutinise tenders above five crores in the case of the Public Works, Irrigation and Minor Irrigation Departments of the Government and above rupees one crore in other cases.


S.11 Opening of Tenders.

       (1) The procurement entity may authorise either the Tender Inviting Authority or the Tender Accepting Authority or any other Officer to open the tenders and draw up a list of Tenderers responding to the notice inviting tender, in each case.
       
       (2) The Authority, or as the case may be the officer referred to in sub-section (1) shall open the tender draw up a list of tenderers in the prescribed manner and unless it is also the Tender Accepting Authority, forward the tenders along with the list of tenderers, to the Tender Accepting Authority.


S.12 Duties of Tender Inviting Authority.

       (1) It shall be the duty of every Tender Inviting Authority.
       
       (a) to take out notice inviting tenders at the behest of the Procurement Entity in the prescribed manner;
       (b) to communicate the notice inviting tenders by marking a copy thereof to the Tender Bulletin Officer concerned immediately after issue of the notice;
       (c) to cause publication of notice inviting tenders in the prescribed manner; and
       (d) to supply the Schedule of Rates and Tender Documents to every intending tenderer who has applied to get such documents.
       
       (2) The Tender Inviting Authority shall take out notices, communications and publications req

S.13 Acceptance of Tender

       The Tender Accepting Authority shall, after following such procedure as may be prescribed pass order accepting the tender and shall communicate the information relating to acceptance of tender together with a comparative analysis and reasons for accepting of tender to the procurement entity and the Tender Bulletin Officer:
       Provided that where the Tender Accepting Authority consists of single officer who is due to retire within the next six months, from the date fixed for the acceptance for tender, he shall not act to accept the tender without obtaining prior approval of the Procurement Entity:
       
       Provided further that subject to such general or special order as may be issued by the Government from time to time, the Tender Accepting Authority may before passing order accepting a tender negotiat

Karnataka Transparency in Public Procurement Act, 1999 – Section 13: Legal Commentary

Introduction

Section 13 of the Karnataka Transparency in Public Procurement Act, 1999 (KTPP Act) governs the acceptance of tenders and the powers of the Tender Accepting Authority in public procurement. It lays down the procedure and safeguards for tender acceptance, while also providing for the rejection of all tenders under specified circumstances. The section is central to ensuring transparency and fairness in government procurement in Karnataka.

What Does Section 13 Say?

Section 13 primarily addresses two key aspects:1. Acceptance of Tender: The Tender Accepting Authority, after following the prescribed procedure, shall pass an order accepting the tender.2. Rejection of All Tenders: The Tender Accepting Authority may, at any time before passing an order of acceptance under Section 13, reject all tenders on specified grounds such as changes in the scope of procurement, failure of anticipated financial resources, accidents, calamities, etc.

Additionally, the section has been amended over time to incorporate procedural changes, including the substitution of references to the Karnataka Public Procurement Portal and updates to the tender bulletin process.

Essential Ingredients

  • Tender Accepting Authority: The designated authority responsible for evaluating and accepting or rejecting tenders.
  • Order of Acceptance: A formal order passed by the Tender Accepting Authority after following the prescribed procedure.
  • Grounds for Rejection: The Authority may reject all tenders before acceptance on grounds such as:
  • Changes in the scope of procurement
  • Failure of anticipated financial resources
  • Accidents or calamities
  • Other justifiable reasons
  • Procedure: The Authority must follow the procedure as prescribed under the Act or Rules.
  • Right to Appeal: Any tenderer aggrieved by an order passed under Section 13 (other than by the Government) may appeal to the prescribed authority.

Scope of Section

  • Applicable to all public procurements covered under the KTPP Act, 1999.
  • Extends to the acceptance or rejection of tenders by the Tender Accepting Authority.
  • Covers pre-acceptance as well as post-acceptance stages, including the power to reject tenders at any stage before the final acceptance order.
  • Provides a legal framework for challenging rejection or acceptance orders through appeals or writ jurisdiction.
  • Applies to all procurement entities and authorities functioning under the Act.

Punishment for Section

The KTPP Act, 1999, under Section 13 and related provisions, does not directly prescribe punishment. However:- Non-compliance with the procedure under Section 13 may lead to rejection of the tender or cancellation of the procurement process.- Any person or authority found to have acted in violation of the provisions of the Act may face disciplinary or legal action, including proceedings under the Prevention of Corruption Act, 1988, if applicable.- The Act provides for appeals and judicial review against orders passed under Section 13, which may result in quashing of improper orders or directions for re-procurement.

Legal Comments

S.14 General rejection of tenders.

       (1) The Tender Accepting Authority may at any time before passing an order of acceptance under Section 13 reject all the tenders on the ground of changes in the scope of procurement, failure of anticipated financial resource, accidents, calamities or any other ground as may be prescribed which would render the procurement unnecessary or impossible and report the same to the Procurement Entity.
       
       (2) The Procurement Entity shall thereafter communicate the fact of the rejection under this section to all the Tenderers and also cause the same to be published in the Tender Bulletin.


Legal Commentary: Karnataka Transparency in Public Procurement Act, 1999 – Section 14

Introduction

Section 14 of the Karnataka Transparency in Public Procurement Act, 1999 (KTPP Act) deals with the rejection of tenders and the circumstances under which a Tender Accepting Authority may reject all or some tenders received in response to a tender invitation. It also prescribes the penalty for contravention of the Act's provisions. The section is a key safeguard in the public procurement process, ensuring that tendering authorities retain discretion to reject bids under justified circumstances while maintaining transparency and fairness.

What Does Section 14 Say?

Section 14 primarily addresses two aspects:1. Rejection of tenders – The Tender Accepting Authority may reject all tenders before passing an order of acceptance under Section 13, if the circumstances warrant it.2. Communication of rejection – The Procurement Entity is required to communicate the fact of rejection to all tenderers and also cause the same to be published in the Tender Bulletin.3. Penalty – Whoever contravenes the provisions of the Act or the rules made thereunder shall be punishable with imprisonment and/or fine.

Essential Ingredients

  • Rejection must be before acceptance: The Tender Accepting Authority can only reject tenders before passing an order of acceptance under Section 13.
  • Communication: The rejection must be communicated to all tenderers.
  • Publication: The fact of rejection must be published in the Tender Bulletin.
  • Penalty for contravention: Any violation of the provisions of Section 14 or the Act attracts punishment under the Act.

Scope of Section 14

  • Applies to all public procurements covered under the KTPP Act.
  • Covers the entire tendering process, from the invitation of tenders to the final acceptance or rejection.
  • Empowers the Tender Accepting Authority to reject all or some tenders based on legitimate grounds.
  • Ensures transparency by mandating communication and publication of rejection decisions.
  • Provides a legal basis for challenging arbitrary or unjustified rejection of tenders through judicial review.

Punishment for Section 14

  • Imprisonment: Up to a specified term (as per the Act).
  • Fine: May extend to a specified amount (as per the Act).
  • The punishment is intended to deter violations of the transparency and procedural requirements of the Act.

Legal Comments

S.15 Power to give directions.

       It shall be competent for the Government to give appropriate directions to the Procurement Entity or the Authorities under the Act in order to secure and maintain transparency at any stage of the process of procurement, and it shall be duty of the Procurement Entity or such authority to comply with the directions.


S.16 Appeal.

       (1) Any tenderer aggrieved by an order passed by the Tender Accepting Authority other than the Government under Section 13 may appeal to the prescribed authority within thirty days from the date of receipt of the order:
       
       Provided that the prescribed authority may, in its discretion allow further time not exceeding thirty days for preferring any such appeal, if it is satisfied that the appellant had sufficient cause for not preferring the appeal in time.
       
       (2) The prescribed authority may after giving opportunity of being heard to both the parties pass such order thereon as it deems fit and such order shall be final.
       
       (3) the prescribed authority shall as far

Section 16 - Karnataka Transparency in Public Procurement Act, 1999

Introduction

Section 16 of the Karnataka Transparency in Public Procurement Act, 1999 (KTPP Act) is the Appeal section. It provides a statutory mechanism for tenderers to challenge orders passed by the Tender Accepting Authority. The section aims to ensure a transparent, time-bound, and effective review process for procurement decisions, consistent with the Act's overarching objective of promoting transparency in public procurement. The courts have consistently held that this remedy is designed to be speedy, effective, and inexpensive, and it must be exhausted before resorting to writ jurisdiction [1][2].

What Does Section Say

Section 16 grants an aggrieved tenderer the right to appeal against an order passed by the Tender Accepting Authority (other than the Government) under Section 13. The appeal must be filed with the prescribed authority within a specified period. The prescribed authority is mandated to dispose of the appeal within thirty days from the date of filing [3][4].

Essential Ingredients

  1. Aggrieved Person: Only a tenderer who is aggrieved by an order passed by the Tender Accepting Authority (other than the Government) can file an appeal [5].
  2. Order under Section 13: The order challenged must be one passed by the Tender Accepting Authority under Section 13 of the Act [5].
  3. Filing within Prescribed Period: The appeal must be filed within the time frame specified in the Act or rules [4].
  4. Disposal within 30 Days: The appellate authority is required to dispose of the appeal within thirty days from the date of filing [3][4].
  5. Decision on Merits: The appellate authority is expected to decide the appeal on its merits [6].

Scope of Section

The scope of Section 16 is limited to providing an alternative statutory remedy for tenderers challenging procurement decisions. It applies to orders passed by the Tender Accepting Authority other than the Government. The section does not apply to Government orders, which may be challengeable through other statutory or constitutional remedies. The primary scope is to ensure a time-bound and transparent review process within the procurement hierarchy [5][6].

Punishment for Section

Section 16 itself does not contain any direct penal provision. However, any person who contravenes the provisions of the Act or the rules made thereunder is punishable with imprisonment for a term which may extend to three years, as per the general penal provisions of the Act [7].

Legal Comments

  • "Writ Petition Maintainability" - A writ petition is not maintainable against a procurement order when an effective, speedy, and inexpensive alternative remedy of appeal under Section 16 of the Karnataka Transparency in Public Procurement Act, 1999 is available and has not been availed of by the petitioner. [1][2][8]
  • "Alternative Remedy" - The remedy under Section 16 is designed to be speedy, effective, and inexpensive. An aggrieved party must exhaust this statutory remedy before approaching the High Court under Article 226 of the Constitution. [1][2]
  • "Appellate Authority Timeframe" - The Appellate Authority is supposed to dispose of the appeal under Section 16 within 30 days from the date of filing. Directions have been issued to Appellate Authorities to pass orders on or before a specified date when they failed to comply with this mandate. [3][4][6]
  • "Tender Specifications and Price" - The court examined the specifications in the tender and the price quoted by the successful bidder under the framework of Section 16. The court held that the specifications were not contrary to industry norms, the price quoted was not exorbitant, and the delay in the appeal process was contrary to public interest. [9]
  • "Non-Availability of Interim Order" - The petitioner did not have the benefit of an interim order during the pendency of the proceedings under Section 16. The court held that no useful purpose would be served at this stage by examination of the matter, and liberty was reserved to the petitioner to avail the alternative remedy. [10]
  • "Direction to Dispose Appeals" - The court directed that the appeals under Section 16 be decided on merits in accordance with the law as early as possible, with an outer limit of three weeks, when the Appellate Authority had failed to decide the appeals within the prescribed period. [6]
  • "Rejection of Tender" - The court held that the remedy for the rejection of a tender is the appeal available under Section 16 of the Act, and a writ petition challenging the rejection is not maintainable when this statutory remedy exists. [1][5]
  • "Constitutional Writ Jurisdiction" - Under Article 226 of the Constitution, the High Court cannot be used as a substitute for the statutory appeal under Section 16. The petitioner cannot be permitted to redress its grievance by invoking extraordinary jurisdiction when a plain statutory remedy is available. [2][8]
  • "Public Interest and Delay" - The court found that the delay in the appeal process under Section 16 was contrary to public interest, emphasizing the importance of time-bound disposal of appeals in public procurement. [9]
  • "Penalty for Contravention" - While not part of Section 16, it is noted that any violation of the Karnataka Transparency in Public Procurement Act, 1999 and Rules 2000 attracts the penal provision under Section 23 of the Act, which includes imprisonment up to three years. [7]
  • "Statutory Remedy Exhaustion" - The courts have emphasized that the statutory remedy under Section 16 must be exhausted before any challenge is made through writ petitions. The Act provides for a complete and exclusive procedure for addressing grievances related to tender rejection or acceptance. [1][2][8]
  • "Prescribed Authority" - The appeal under Section 16(1) must be filed with the prescribed authority as specified in the Act. The prescribed authority has the jurisdiction to hear and decide the appeal within the stipulated time frame. [3][4][5]
  • "Successive Amendments" - The Karnataka Transparency in Public Procurement Act, 1999 has been amended by Karnataka Act No. 19 of 2021, and the rules have been updated from time to time to streamline the procurement process and strengthen the appeal mechanism under Section 16. [11]
  • "Review of Appellate Decision" - The decision of the Appellate Authority under Section 16 is expected to be based on merits. The courts have directed that appeals be decided within the prescribed time limit to prevent stalling of procurement processes. [6][9]
  • "Cost Implications" - In cases where writ petitions are found to be frivolous or an abuse of process, the court has imposed costs on the petitioner, emphasizing the need to use the statutory remedy under Section 16 as the primary forum for challenging procurement orders. [9]

References

[1] KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999 - Section 16: [H.G. Ramesh, J] Rejection of tender - Remedy of appeal available under - Writ petition is not maintainable. (Source: JMC Projects (India) Limited VS State of Karnataka - 2014 0 Supreme(Kar) 1041)[2] Constitution of India - Articles 226 and 227 - Writ petition Maintainability - Public contract Awarding of - Challenge to by unsuccessful bidder - Contract covered by Kar. Transparency in Public Procurements Act - Remedy of appeal provided under Section 16 of that Act which is speedy, effective and inexpensive - Petitioner not availing of - Petitioner cannot be permitted to redress its grievance by invoking extraordinary jurisdiction under. (Source: Kirloskar Brothers Ltd. VS Karnataka Niravari Nigam Ltd. - 2008 0 Supreme(Kar) 745)[3] KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999 - Section 16: [Ram Mohan Reddy, J] Appeal - Time frame for taking decisions - Appellate Authority is supposed to dispose the appeal within 30 days - Directions issued to Appellate Authority to pass orders on or before 27-5-2013. (Source: BCITS Private Limited VS State of Karnataka - 2013 0 Supreme(Kar) 1175)[4] Section 16 in The Karnataka Transparency In Public .... (3)The prescribed authority shall as far as possible dispose of the appeal within thirty days from the date of filing thereof. (Source: )[5] KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999 - Section 16: [Ajit J. Gunjal, J] Tender for providing service of personnel of Data Entry Operators - Petitioner was also one of participant in tender - Petitioner questioning awarding of contract to 4th respondent -Writ Petition - Petitioner not availed alternative remedy of appeal under Section 16 of the Karnataka Transparency in Public Procurements Act - Held, No useful purpose would be served at this stage by examination of matter. (Source: Target Detective And Security Force, Davanagere VS State Of Karnataka - 2010 0 Supreme(Kar) 56)[6] KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999 - Section 16: [Mohan Shantanagoudar, J] Petitioner sought for a direction to dispose of appeals of the petitioner under Section 16 of the Karnataka Transparency in Public Procurements Act, 1999 - Though two months have lapsed, the appeals were not decided. The Act prescribes 30 days for deciding the appeals. (Source: S. V. Bandi VS Secretary, Minor Irrigation Department - 2013 0 Supreme(Kar) 1039)[7] karnataka transparency in public procurements act, 1999. Whoever contravenes the provisions of this Act or the rules made thereunder shall be punishable with imprisonment for a term which may extend to three years... (Source: )[8] 16+of+the+karnataka+public+procurement+transparency+act. Section 16 of the Karnataka Transparency in Public Procurement Act, 1999, these writ petitions are dismissed.... Court: Karnataka High Court. Date: Oct 14, 2011... (Source: )[9] Tender - Public Procurement - Karnataka Transparency in Public Procurements Act, 1999 - Section 16 - The court discussed the specifications in the tender, the price quoted by the successful bidder, and the delay in the appeal process. (Source: Transasia Bio-Medicals Ltd. VS Principal Secretary Department of Health and Family Welfare, Bengaluru - 2022 0 Supreme(Kar) 486)[10] KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999 - Section 16: [Ajit J. Gunjal, J] Petitioner not availed alternative remedy of appeal under Section 16... Petitioner did not have benefit of an interim order during Pendency of proceedings. (Source: Target Detective And Security Force, Davanagere VS State Of Karnataka - 2010 0 Supreme(Kar) 56)[11] THE KARNATAKA TRANSPARENCY IN PUBLIC PROCUREMENTS ACT, 1999 (Karnataka Act No. 29 of 2000) (as Amended by Karnataka Act No. 19 of 2021). (Source: )

S.17 Power to obtain information.

       Notwithstanding anything contained in this Act or in any other law for the time being in force, the Government may with a view to ensuring transparency call for and obtain, from any authority under the Act, any information relating to any matter in the process of procurement.


S.18 Power to call for records.

       The Government may at any time, with a view to ensuring transparency in the procurement process call upon any authority under the Act.
       (i) to produce records relating to invitation, processing and acceptance of tenders;
       
       (ii) to furnish the tender document, estimates/statements/accounts or statistics relating to such tenders; and
       
       (iii) to furnish report on any specific point incidental to the procurement.


S.19 Officers deemed to be Public Servants.

       Every Officer acting under or in pursuance of the provisions of this Act or under a rule, order or notification made thereunder, shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code. 1860 (Central Act XLV of 1860).


S.20 Immunity for action taken in good faith.

       No suit or other legal proceeding shall lie against the Government or any officer or authority empowered to exercise powers or perform the functions under the Act in respect of anything which is in good faith done or- intended to be done under this Act.


S.21 Bar of jurisdiction of Courts.

       Save as otherwise provided in this ordinance no order passed or proceedings taken by any officer or authority under this Act shall be called in question in any Court, and no injunction shall be granted by any Court in respect of any action taken or to be taken by such officer or authority in exercise of powers conferred on him or it, by or under this Act.
       


S.22 Act to override other laws.

       The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any custom or usage agreement, decree or order of a Court or a Tribunal or other authority.


S.23 Penalty.

       Whoever contravenes the provisions of this Act or the rules made thereunder shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to five thousand rupees.


S.24 Power to remove difficulties.

       If any difficulty arises in giving effect to the provisions of this Act, the Government may, by an order published in the Gazette make such provisions not inconsistent with the provisions of the Act as appear to them to be necessary or expedient for removing the difficulty:
       Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of the Act.


S.25 Power to make rules.

       (1) The Government, may by notification, make such rules as are necessary for carrying out the purposes of this Act.
       
       (2) Every rule made or notification or order issued under this Act shall as soon as possible, after it is made or issued, be placed before each House of the State Legislature while it is in session for a total period of thirty days, which may be comprised in one session or in two or more successive sessions and if before the expiry of the session in which it is laid or the sessions immediately following both Houses agree in making any modifications in the rule, notification or order or both Houses agree that the rule, notification or order shall not be made, the rule or notification or order shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however that any such modificat

S.26 Savings.

       All rules, regulations, orders, notifications departmental codes, manuals, bye-laws, official memoranda, circulars or any other order made or issued before the commencement of this Act and in force on the date of such commencement providing for or relating to any of the above matters for the furtherance of which this Act is enacted shall continue to be in force and effective as if they are made under the corresponding provisions of this Act, to the extent they are not inconsistent with the provisions of the Act and unless and until superseded by anything done or any action taken or any rule, notification or order, is made under this Act.


S.27 Repeal and savings

       (1) The Karnataka Transparency in Public Procurements Ordinance, 2000 (Karnataka Ordinance No. 8 of 2000) is hereby repealed.
       
       (2) Notwithstanding such repeal anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.


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