Case Note & Summary
The dispute in the present appeals pertains to a contract for construction of a commercial complex to be raised by Srinivasapura Town Municipality, Kolar. On a resolution for construction of a commercial complex having been passed sometime in February, 2014 by the Municipality, the State Government sanctioned the project which was valued at Rs.5 crores and same was subject to certain conditions imposed in the Government Order dated 4.6.2014. One such condition was that the procedure laid down in the Karnataka Transparency in Public Procurement Act, 1999 (for short ‘the Act’) and the Rules framed thereunder, as well as the procedure for e-procurement method, be observed and also to obtain approval of the competent authority. Because of drought in the region and acute shortage of water, the Municipality decided to go ahead with the construction to provide employment to the local people. The appellants, who are Municipal Councilors, filed writ petitions challenging the tender process, which were dismissed by the Single Judge. The appellants then filed the present writ appeals under Section 4 of the High Courts Act, 1961. The court considered the issue of whether the tender process must comply with the conditions in the Government Order. The court held that the conditions in the Government Order dated 4.6.2014 are mandatory and must be followed. The court allowed the appeals, set aside the order of the Single Judge, and directed that the tender process be conducted in accordance with the Karnataka Transparency in Public Procurement Act, 1999 and the e-procurement method.
Headnote
A) Municipal Law - Tender Process - Compliance with Government Order - Karnataka Transparency in Public Procurement Act, 1999 - The dispute pertained to a contract for construction of a commercial complex by Srinivasapura Town Municipality. The State Government sanctioned the project subject to conditions in Government Order dated 4.6.2014, including compliance with the Act and e-procurement method. The court held that the tender process must adhere to the conditions imposed in the Government Order, and the Single Judge's order was set aside. (Paras 1-5) B) Writ Appeal - Maintainability - Interference with Interim Order - High Courts Act, 1961, Section 4 - The appeals were filed under Section 4 of the High Courts Act, 1961 against an interim order dated 13.3.2015 in WPs 755-756/2015. The court allowed the appeals and set aside the Single Judge's order, directing compliance with the Government Order conditions. (Paras 1-5)
Issue of Consideration
Whether the tender process for construction of a commercial complex by Srinivasapura Town Municipality was required to comply with the conditions imposed in the Government Order dated 4.6.2014, including the procedure under the Karnataka Transparency in Public Procurement Act, 1999 and e-procurement method.
Final Decision
The court allowed the writ appeals, set aside the order dated 13.3.2015 passed by the Single Judge in WPs 755-756/2015, and directed that the tender process be conducted in accordance with the conditions imposed in the Government Order dated 4.6.2014, including the procedure under the Karnataka Transparency in Public Procurement Act, 1999 and the e-procurement method.
Law Points
- Karnataka Transparency in Public Procurement Act
- 1999
- e-procurement
- tender conditions
- government order conditions
- municipal contract
- writ appeal maintainability
