M. SURESH GOWDA vs STATE OF KARNATAKA
- Court
- Karnataka High Court
- 1 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ND
DATED THIS THE 22 DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
WRIT PETITION NO. 11102 OF 2026 (GM-TEN)
BETWEEN:
M. SURESH GOWDA
S/O LATE. MAYIGOWDA,
AGED ABOUT 55 YEARS,
RD
R/AT. NO. 98/N-1, 3 MAIN ROAD,
TH
11 CROSS ROAD, LALITHA MAHAL NAGAR,
MYSORE- 570 028
…PETITIONER
(BY SRI. H PAVANA CHANDRA SHETTY., ADVOCATE)
AND:
1. STATE OF KARNATAKA
REPRESENTED BY ITS SECRETARY,
DEPARTMENT OF ANIMAL HUSBANDRY AND
VETERINARY SERVICES,
M.S. BUILDING, DR. AMBEDKAR VEEDHI,
BENGALURU - 560 001
2. MANAGING DIRECTOR,
KARNATAKA MILK FEDERATION (A UNIT OF KMF),
KMF COMPLEX,
DR. M.H. MARIGOWDA ROAD,
D.R. COLLEGE POST,
BENGALURU - 560 029
3. DIRECTOR (PURCHASE),
KARNATAKA CO-OPERATIVE MILK PRODUCERS
FEDERATION LIMITED,
KMF COMPLEX,
DR. M.H. MARIGOWDA ROAD,
D.R. COLLEGE POST,
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
- 2 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
BENGALURU - 560 029
4. DIRECTOR,
NANDINI PRODUCTS,
KMF COMPLEX,
DR. M.H. MARIGOWDA ROAD,
D.R. COLLEGE POST,
BANGALORE - 560 029
5. ESHWAR ENTERPRISES,
GROUND FLOOR, 17/17,
TH
8 CROSS, WILSON GARDEN,
BENGALURU- 560 027,
REP. BY ITS PROPRIETOR-
SRI. SHIVANNA H.D.
6.
7.
VENU ENTERPRISES,
A PARTNERSHIP CONCERN
HAVING ITS OFFICE AT NO.2830,
TH TH
M.M.SQUARE, 4 FLOOR, 15 MAIN,
RD
3 CROSS, BEHIND SAHAKARA NAGAR,
BENGALURU- 560 092
REP. BY ITS PROPRIETOR
SRI.GOPAL M
THE PRINICPLE SECRETARY
FINANCE DEPARTMENT
STATE OF KARNATAKA
VIDHANA SOUDHA
BENGALURU-560001.
(AMENDED AS PER C/O/D 05.08.2026)
…RESPONDENTS
(BY SRI. NEELAKANTAPPA K. POJAR., HCGP FOR R1 AND R7;
SRI. SUMANTH L. BHARADWAJ., ADVOCATE FOR R2 TO R4;
SRI. V. SRINIVAS., ADVOCATE FOR R5)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE
IMPUGNED RATE ACCEPTANCE LETTER BEARING ITS
NO.KAHAMA/KARIDHI/TENDER/868/2025-26 DATED 21.02.2026
ISSUED BY THE 3RD RESPONDENT INFAVOUR OF THE 5TH
RESPONDENT (BIDDER) PRODUCED AS ANNEXURE-A AND ETC.
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
- 3 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
THIS WRIT PETITION, COMING ON FOR FURTTHER HEARING,
THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
ORAL ORDER
1. The Petitioner is before this Court seeking for the
following reliefs:
a. To quash the impugned Rate Acceptance Letter
bearing its No.KaHaMa/Karidhi/Tender/868/2025-26
dated 21.02.2026 issued by the 3rd respondent in
favour of the 5th Respondent (Bidder) produced as
ANNEXURE-A.
b. To quash the impugned Work order issued by the
Respondent No.4 through official letter bearing
No.Mi.Pra/Dated: 01/04/2025 Adalitha/545/2026-27
dated 01.04.2026 in favour of the Respondent No.5
as per Tender Notification published by the 2nd
Respondent /Karnataka Co-operative Milk Producers
Federation Limited, Bengaluru produced as
ANNEXURE-B.
c. Pass such other order or orders as this Hon'ble
Court may deem fit, proper, necessary and expedient
in the circumstance of the case.
2. The contention of the learned counsel for the
petitioner was that the very terms of the
tender
notification was not in accordance with law inasmuch
as all the tenderers could not quote less than 2% in
terms of Clause 3.2 thereof and that in terms of
Clause 3.2, if more than one tenderer quotes the
same service charge and is to declared the L1,
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
- 4 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
tender committee shall take a decision with the
consent of the concerned tenderers. It is in that view
of the matter that this Court had called upon the
Finance Secretary to look into the aspect and make a
submission.
3. An affidavit of the Finance Secretary had been filed
indicating that the terms of the tender were not as
per the KTTP Act and that the tender document
defeats the very purpose of the contractual bidding
process as also the instructions issued by the Finance
Department from time to time. It was further stated
that the State Government has taken up steps to
frame the model tender document in regard to
procurement of human resources and draft has been
published on the Finance Department's website
calling for suggestions from the general public.
4. When the matter was taken up on 17.09.2026 and
this Court had indicated that in view of the affidavit
filed by the Finance Secretary the tender issued
would have to be quashed and the writ petition
required to be allowed.
5. Learned counsel for KMF made a submission that in
view of the Dasara and Diwali festivals there are lot
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
- 5 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
of sweets and other savories which are required to
be prepared. There being a massive demand, his
submission is that if the tender were to be cancelled,
by the time a new tender were to be issued and
processed, the festival period of Dasara and Diwali
would have lapsed, resulting in tremendous losses to
the KMF.
6. It is in that background that he was called upon to
obtain instruction, make a submission as to what is
the raw material which is available and by when the
raw material could be consumed so that such losses
could be avoided.
7. The submission of Sri.V.Srinivas, learned counsel
appearing for respondent no.5 was that instead of
cancelling the tender, respondent no.5 is ready to
share the period of tender with the petitioner so that
the petitioner can also get benefit out of it. In that
regard, reliance had been placed on the decision of
this Court in the case of Venu Enterprises vs.
State of Karnataka [WP No.32105/2018] more
particularly Para 7 thereof which is reproduced
hereunder for easy reference:
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
- 6 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
7. In that view of the matter, this Court is of the considered
view that it would be appropriate to permit petitioner to have
the first tenure of eight months (from 01.08.2018 till
31.03.2019) out of 24 months as agreed to between petitioner,
respondent Nos.5 and 6. It is also made further clear that
second tenure of eight months (from 01.04.2019 till
30.11.2019) would be by 5th respondent and third tenure of
eight months (from 01.12.2019 till 30.07.2010) would be by
6th respondent, since all these three persons were the lowest
bidders are having been classified as L-1 tenderers by the
tender inviting authorities.
8. On that basis, he submits that the tenure if divided
between the petitioner and respondent no.5, KMF will
not be adversely affected.
9. Today a memo has been filed which reads as under:
MEMO
1. It is submitted that, in compliance of the directions
issued by this Hon'ble Court on 17/09/2026, the following
details and status of raw materials that being stocked
and processed in the subject unit, are being submitted.
2. The subject manufacturing unit has 83 different raw
materials (including milk, ghee, skimmed milk powder,
dairy whitener and by utilizing the same about 39 distinct
dairy and sweet products are being manufactured on
daily basis. Presently, the unit is manufacturing about 12
metric tons of finished products on daily basis.
3. The unit process about 15,000 liters of raw liquid milk
per day. Raw milk is highly perishable and spoils
completely within 2 days if not continuously processed
into dairy/sweet products. Other agricultural raw
materials and ingredients currently stored in the plant
also have a limited shelf life.
4. As per official store and production logs, the monetary
value of the raw materials currently stocked at the unit is
as follows:-
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
- 7 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
a. At Warehouse/store division:- Rs.36,67,000/-.
b. At Production division (In process):- Rs.50,00,000/-
Total existing stock valuation is Rs.86,67,000/-.
5. The unit generates an average daily operation
turnover of Rs.35,00,000/-
6.In view of upcoming Dasara and Deepavali festivals,
KMF has a massive demand of 638 metric tons of sweet
and dairy products with an estimated turnover of
Rs.26.50 Crores. In the above said background, to
ensure uninterrupted market supply and avoid public
shortage, purchase orders have already been executed to
procure and stock raw materials and packing materials
required fort next 4 months.
7. This, if manufacturing operations are halted then KMF
will suffer an immediate direct loss of existing stocked
raw materials worth Rs.86.67 Lakhs in addition to an
ongoing operational revenue loss of Rs.35 Lakhs per day.
Halting manufacturing operations at this critical juncture
would not only causes irreparable loss to the KMF and
public exchequer funds but would also severely disrupts
milk supply chains benefiting thousands of dairy farmers
across the State. A copy of the note sheet maintained by
this respondents KMF containing the details of raw
materials and its value, is herewith submitted as
Annexure - R.1. Hence, it is respectfully prayed that, this
Hon'ble Court kind be pleased to take the same on
record, in the interest of justice and equity.
Wherefore, for the foregoing facts and circumstances,
these respondents p that this Hon'ble Court may be
pleased to pass kind orders, in the interest justice and
equity.
10. Relying on the said memo, Sri.Sumanth
L.Bharadwaj, learned counsel for respondents No.2
to 4 submits that the monetary value of the raw
materials currently available at the warehouse / store
division is Rs.36,67,000/-; at the production division
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
- 8 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
in process is Rs.50,00,000/- and the total existing
stock valuation is Rs.86,67,000/-. The daily
operation turnover being Rs.35,00,000/-. He submits
that KMF has a massive demand of 638 metric
tonnes of sweet and dairy products with an
estimated turnover of Rs.26.50 crores and to ensure
uninterrupted market supply and to avoid public
shortage, purchase orders have already been
executed to procure and stock raw materials and
packing materials for the next 4 months.
11. In view of the submissions made by all the counsels
and taking into consideration the decision of this
Court Venu Enterprises vs. State of Karnataka ,
where this Court had directed the tender period to be
split and shared between the tenderers, considering
that respondent no.5 had been issued a work order
on 1.4.2026 and has been working the contract for
last 5 months. KMF stated that the process for
issuing a fresh tender and completion would take 4
months; the petitioner is permitted to carry out the
necessary tender works for a period of 4 months
commencing from 01.10.2026 to 31.01.2027.
12. It is made clear that the KMF would have to complete
the tender process and issue work order as per the
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
- 9 -
HC-KAR
NC: 2026:KHC:52204
WP No. 11102 of 2026
CNR: KAHC010257512026
finalisation by the Finance Department by end of
January 2027. The process for issuance of tender to
commence in the month of December 2026.
13. With the above observations, the Petition stands
disposed .
Digitally Signed By:
SURAJ GOVINDA RAJ
15/10/2026, 13:39, Bengaluru
Verified
(SURAJ GOVINDARAJ)
JUDGE
PRS
List No.: 3 Sl No.: 4