Case Note & Summary
The petitioner, Voith Hydro Private Limited, filed a writ petition under Articles 226 and 227 of the Constitution of India seeking a writ of certiorari to quash the letter of award dated 28.11.2018 issued by respondent No.1, Karnataka Power Corporation Limited, in favor of respondent No.2, Andritz Hydro Private Limited, for the renovation and modernization of generating units of Shivasamudram Power House. The petitioner also sought a writ of mandamus directing respondent No.1 to award the contract through open competitive bidding. The court noted that the petitioner did not participate in the tender process. The court held that a person who does not participate in a tender process has no locus standi to challenge the award of the tender. The court further found that the tender conditions were not arbitrary. Consequently, the writ petition was dismissed.
Headnote
A) Constitutional Law - Locus Standi - Judicial Review of Tender - Petitioner not participating in tender process lacks standing to challenge award - Held that a person who does not participate in a tender process cannot challenge the same as they are not aggrieved (Para 2).
B) Tender Law - Non-Arbitrariness - Tender Conditions - Conditions in tender not arbitrary - Held that the tender conditions were not arbitrary and the writ petition was dismissed (Para 2).
Issue of Consideration
Whether the petitioner, who did not participate in the tender process, has locus standi to challenge the letter of award; and whether the tender conditions were arbitrary.
Final Decision
Writ petition dismissed.
Law Points
- Locus standi
- Judicial review of tender process
- Non-arbitrariness in tender conditions
- Writ of certiorari
- Writ of mandamus
Case Details
2019 LawText (KAR) (07) 2
Writ Petition No.10276 of 2019 (GM-TEN)
Arun Kumar K, Sundararaman M V, Srinivasa Raghavan V, Ajay J Nandalike, S S Naganand, Sivaramakrishnan M S, Trishampathi Sen
Voith Hydro Private Limited
Karnataka Power Corporation Limited and M/s. Andritz Hydro Private Limited
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Nature of Litigation
Writ petition challenging letter of award in a tender for renovation and modernization of generating units.
Remedy Sought
Quashing of letter of award dated 28.11.2018 and direction to award contract through open competitive bidding.
Filing Reason
Petitioner aggrieved by award of contract to respondent No.2 without open competitive bidding.
Issues
Whether the petitioner has locus standi to challenge the tender award when it did not participate in the tender process.
Whether the tender conditions were arbitrary.
Submissions/Arguments
Petitioner argued that the tender was awarded without open competitive bidding and conditions were arbitrary.
Respondents argued that petitioner lacked locus standi as it did not participate in the tender.
Ratio Decidendi
A person who does not participate in a tender process has no locus standi to challenge the award of the tender. The tender conditions were not arbitrary.
Judgment Excerpts
In this petition under Articles 226 & 227 of the Constitution of India, the petitioner inter alia seeks a writ of certiorari for quashment of letter of award dated 28.11.2018 issued by respondent No.1-Company in favour of respondent No.2 as well as a writ of mandamus to respondent No.1 to award renovation and modernization of generating units of Shivasamudram Power House through open competitive bidding.
Procedural History
The writ petition was filed on an unspecified date and came up for preliminary hearing in 'B' group on 30.07.2019, when the court made the order dismissing the petition.
Acts & Sections
- Constitution of India: Articles 226, 227
