Rajath R vs. The State Of Karnataka

Facts

The petitioner, R.R. Enterprises, a proprietor dealing in food supplies, challenged a corrigendum issued by the District Surgeon (Respondent No. 3) on April 8, 2022. This corrigendum modified a Notice Inviting Tender (NIT) dated March 31, 2022, issued by the Health and Family Welfare Department (Respondent No. 2). The original NIT required tenderers to submit a GST certificate for one year. The corrigendum, issued before the last date for bid submission, increased this requirement to a GST certificate for three years. The petitioner, possessing only a one-year GST certificate, was consequently disqualified from participating in the tender. The petitioner contends this modification after the NIT issuance is illegal. An interim order had stayed further tender proceedings.

Held

The Court held that the corrigendum issued on April 8, 2022, was in consonance with the power available under Rule 14 of the Karnataka Transparency in Public Procurements Rules, 2000. Rule 14 explicitly permits the Tender Inviting Authority to make any changes, modifications, or amendments to the tender documents at any time after the issue of tender documents and before the opening of the tender. The Court noted that the corrigendum was issued on April 8, 2022, which was before the last date for submission of bids (April 11, 2022) and before the opening of the technical bid (April 13, 2022). Therefore, it was a permissible exercise of power. The Court found no illegality in the action of the Tender Inviting Authority. The Court also accepted the respondents' submission that the original stipulation of a one-year GST certificate was contrary to a Government order requiring a three-year GST certificate. The Court concluded that the change in the tender condition did not amount to changing the rules of the game after it commenced and that the petitioner being disqualified due to the corrigendum did not make it illegal. The petition was dismissed.

Key Issues

1. Whether the corrigendum issued by the Tender Inviting Authority, modifying the tender condition regarding the duration of the GST certificate from one year to three years, is violative of the Karnataka Transparency in Public Procurements Act, 1999 and the Karnataka Transparency in Public Procurements Rules, 2000? Petitioner's contention: The petitioner argued that any alteration or modification of tender conditions after the issuance of the tender notification is violative of law, as it effectively takes away the petitioner's right to participate. They sought the quashment of the corrigendum and acceptance of their tender. Revenue's contention: The respondents contended that Rule 14 of the Karnataka Transparency in Public Procurements Rules, 2000, permits the issuance of corrections or corrigenda prior to the opening of tenders. They asserted that the corrigendum was issued before the last date for bid submission, rendering it legal. They also submitted that the original stipulation of a one-year GST certificate was contrary to a Government order mandating a three-year GST certificate in tenders.