Case Note & Summary
The petitioner, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the rejection of its bid in a tender process for a Battery Energy Storage System by Karnataka Power Transmission Corporation Limited (KPTCL) -- The petitioner claimed violation of natural justice as no reasons were communicated for the rejection -- The Court examined the principles of judicial review in contractual matters, citing the Supreme Court decision in Jagdish Mandal v. State of Orissa -- The Court held that judicial interference in tender matters is limited and should not be invoked to protect private interests at the cost of public interest -- The Court found that the petitioner had access to the tender portal where the rejection was displayed, thus there was no violation of natural justice -- The writ petition was dismissed with costs imposed on the petitioner
Headnote
The High Court of Karnataka dismissed a writ petition challenging the rejection of a bid in a tender process for setting up a grid-connected standalone Battery Energy Storage System -- The petitioner, Forceone SD Private Limited, participated in the tender invited by Karnataka Power Transmission Corporation Limited (KPTCL) but was declared non-responsive -- The petitioner sought writs of certiorari and mandamus, claiming violation of natural justice due to non-communication of rejection reasons -- The Court held that judicial review in contractual matters is limited and courts should not interfere unless there is arbitrariness, irrationality, or mala fides -- Relying on Jagdish Mandal v. State of Orissa (2007) 14 SCC 517, the Court emphasized that evaluating tenders is a commercial function and principles of natural justice have limited application -- The Court found no violation of natural justice as the petitioner had access to the tender portal where the rejection was displayed -- The petition was dismissed with costs of Rs. 25,000/-
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Issue of Consideration: The Issue of consideration was whether the rejection of the petitioner's bid without communication of reasons violated natural justice and warranted judicial interference in tender matters
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Final Decision
The writ petition was dismissed with costs imposed on the petitioner
