M/S Ramalingam Construction Company … vs The State Of Karnataka on 8 July, 2026

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    ADVERTISEMENT

    Karnataka High Court

    M/S Ramalingam Construction Company … vs The State Of Karnataka on 8 July, 2026

                                              -1-
                                                        WA No. 2140 of 2025
    
    
    
                                                         RESERVED ON 21.04.2026
    
                        IN THE HIGH COURT OF KARNATAKA AT BENGALURU
    
                              DATED THIS THE 8TH DAY OF JULY, 2026
    
                                           PRESENT
                          THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
                                              AND
                            THE HON'BLE MR. JUSTICE C.M. POONACHA
                             WRIT APPEAL NO. 2140 OF 2025 (GM-RES)
    
    
                   BETWEEN:
    
                   1.   M/S. RAMALINGAM CONSTRUCTION
                        COMPANY PVT. LTD.
                        A COMPANY REGISTERED UNDER
                        THE COMPANIES ACT 2013
                        HAVING ITS REGISTERED OFFICE AT:
                        NO.1, NR TOWER, BINNY MILL ROAD
                        K.H. RANGANATHA COLONY
                        BENGALURU - 560 023
                        REPRESENTED BY AUTHORIZED SIGNATORY
                                                          ...APPELLANT
    
    Digitally      (BY SRI PRABHULING K. NAVADGI, SENIOR ADVOCATE FOR
    signed by K     SRI ASHWIN C., ADVOCATE)
    P SWETHA
    Location:      AND:
    High Court
    of Karnataka
                   1.   THE STATE OF KARNATAKA
                        PUBLIC WORKS DEPARTMENT
                        ROOM NO. 335, 3RD FLOOR
                        VIKAS SOUDHA
                        BANGALORE - 560 001
                        REPRESENTED BY ITS UNDER SECRETARY
    
                   2.   KARNATAKA ROAD DEVELOPMENT
                        CORPORATION LTD.
                                  -2-
                                          WA No. 2140 of 2025
    
    
    
         NO.8, SAMPARKA SOUDHA
         DR. RAJKUMAR ROAD
         RAJAJINAGAR
         BENGALURU - 560 010
         REPRESENTED BY ITS
         MANAGING DIRECTOR
    
    3.   MP 24 CONSTRUCTION COMPANY PVT. LTD.
         NO. 95, HADENAHALLI
         CHANNARAYAPATNA
         SHRAVANABELAGOLA ROAD
         HASSAN, KARNATAKA - 573 135
         REPRESENTED BY
         ITS PROPRIETOR
         KANTHARAJA H.M.
                                         ...RESPONDENTS

    (BY SRI KIRAN V. RON, AAG A/W
    SMT. NAMITHA MAHESH B.G., AGA FOR R-1 &
    SRI VEERESH R. BUDIHAL, ADVOCATE FOR C/R-2)

    THIS WRIT APPEAL FILED UNDER SECTION 4 OF THE

    SPONSORED

    KARNATAKA HIGH COURT ACT PRAYING TO ALLOW THE PRESENT

    APPEAL BY SETTING ASIDE THE FINAL ORDER/JUDGMENT DATED

    09.12.2025 IN W.P. No. 24912 OF 2025 AND CONSEQUENTLY QUASH

    THE GOVERNMENT ORDER No. PWD 203 BMS 2025, BENGALURU

    DATED 13.08.2025 AT ANNEXURE-A IN SO FAR AS THE APPELLANT

    IS CONCERNED & ETC.

    THIS WRIT APPEAL HAVING BEEN HEARD AND RESERVED

    FOR JUDGMENT, COMING ON FOR PRONOUNCEMENT THIS DAY,

    JUDGMENT WAS PRONOUNCED AS UNDER:

    -3-

    WA No. 2140 of 2025

    CORAM: HON’BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
    and
    HON’BLE MR. JUSTICE C.M. POONACHA

    C.A.V. JUDGMENT
    (PER: HON’BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

    1. This intra-court appeal arises from the order dated 09.12.2025

    [the impugned order] passed by the learned Single Judge of this

    Court in W.P.No.24912 of 2025 (GM-RES), captioned “M/s.

    Ramalingam Construction Company Pvt. Ltd. v. State of Karnataka

    and Others“, whereby the said writ petition came to be dismissed.

    While disposing of W.P.No.24912 of 2025, the learned Single Judge

    expressly observed that the reasons assigned in the common order

    disposing of W.P.No.25668 of 2025 and connected matters were to

    be read along with the impugned order, the writ petitioner herein

    having been arrayed as the third respondent in those connected

    petitions.

    2. The appellant, M/s Ramalingam Construction Company Pvt.

    Ltd. [RCCL], is a company incorporated under the Companies Act,

    1956 and is engaged in the infrastructure sector. RCCL was a

    member of a consortium, with M/S MP24 Construction Company
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    WA No. 2140 of 2025

    [MP24] as the lead member, constituted to participate in the tender

    hereinafter described.

    3. The respondents include the State of Karnataka, represented

    by the Public Works Department [the State]; the Karnataka Road

    Development Corporation Limited [KRDCL], the procuring entity for

    the tender; and MP24, arrayed as the third respondent.

    PREFATORY FACTS

    4. KRDCL, a wholly-owned company of the Government of

    Karnataka, issued a Request for Proposal dated 25.02.2025 [the

    RFP] inviting bids for the development of road from Devanahalli-

    Vemagal-Kolar (from 0.000 km to 49.284 km) of State Highway-96,

    of design length 48.20 km, in the State of Karnataka, on PPP-

    DBFOMT-Hybrid Annuity Mode [the project], at an estimated value

    of 762,86,00,000/-. The bid was administered through the

    Karnataka Public Procurement Portal. By a Memorandum of

    Understanding dated 02.04.2025 [the MoU], RCCL agreed to

    participate in the tender as a member of a consortium with MP24

    under the name and style of “MP24CC-RCCL JV” [the consortium].

    It was agreed that MP24 would be the Lead Member. According to

    RCCL, its role was that of a non-active partner providing only
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    WA No. 2140 of 2025

    advisory support, with a 26% participation share. The consortium

    was formalised by a Joint Bidding Agreement dated 11.04.2025 [the

    JBA] and a Power of Attorney dated 11.04.2025 [the POA] in favour

    of MP24. (Both the JBA and the POA were executed on a stamp

    paper purchased on 07.04.2025.)

    5. RCCL states that it sent an e-mail to MP24 at 02:37 PM on

    16.04.2025–that is, a few hours before the closing of bid

    submission–informing MP24 of its withdrawal from the consortium

    and the JBA. MP24 states that it responded by e-mail at 04:07 PM,

    rejecting the withdrawal as unacceptable and contrary to the binding

    consortium arrangements. It is RCCL’s case that the said e-mail

    was occasioned by MP24’s failure to share the bid-related

    documents with RCCL and the resulting issues between the parties;

    that since the e-mail was an internal communication, it was not

    marked to KRDCL; that RCCL had no knowledge, at that stage or

    until 19.05.2025, the uploading of any fabricated document by

    MP24; and that the consortium stood dissolved prior to the opening

    of the Technical Bid.

    6. MP24 submitted the bid on behalf of the consortium on

    16.04.2025, with RCCL listed as a member. Four (4) Bids were
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    WA No. 2140 of 2025

    received. The Technical Bids were opened on 19.04.2025 and all

    four bidders were declared technically qualified. The Financial Bids

    were opened on 16.05.2025, and the consortium’s bid was the

    lowest (L1).

    7. RCCL caused a legal notice dated 27.04.2025 to be sent to

    MP24, terminating the MoU and revoking the POA, on the grounds

    set out therein, namely MP24’s continued misuse of RCCL’s

    credentials in the bid process, despite the withdrawal mail sent by

    RCCL on 16.04.2025.

    8. On 19.05.2025, M/s Bharat Vanijya Eastern Pvt. Ltd.

    [BVEPL], the second-lowest (L2) bidder, addressed a complaint to

    KRDCL and the State alleging that the consortium had furnished

    fabricated documents and, in particular, a work-experience

    certificate purportedly issued by the Andhra Pradesh Water

    Resources Department [the APWRD]. Thereafter, by a letter dated

    22.05.2025 bearing reference No.RCCL/KARO/KRDCL/2025-26-01

    (received by KRDCL through e-mail on 26.05.2025), RCCL formally

    communicated to KRDCL that MP24 had participated in the tender

    by illegally using RCCL’s credentials without its consent, and
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    WA No. 2140 of 2025

    requested KRDCL to reject the bid submitted in the name of the

    consortium.

    9. The enquiries with the APWRD confirmed that the certificate

    purportedly issued by it was bogus and forged. The matter was

    placed before the Board of KRDCL and, on the recommendation of

    the Tender Evaluation Committee [TEC], before the State

    Government.

    10. The State issued a notice dated 24.07.2025 (received by

    RCCL by e-mail on 30.07.2025) regarding the fraudulent submission

    of fake documents by the consortium and calling upon RCCL to

    appear before the State Level Debarment Committee [the SLDC] on

    01.08.2025.

    11. RCCL appeared on 01.08.2025 and filed a preliminary

    response of even date. RCCL furnished its preliminary response

    dated 01.08.2025, inter alia, stating that it had withdrawn from the

    consortium on 16.04.2025 by e-mail; that MP24 had failed to

    respond to that e-mail and had misused RCCL’s credentials to

    upload the bid documents as a consortium; that RCCL had

    thereafter, through its Advocate, issued the legal notice dated

    27.04.2025, terminating the MoU and revoking the POA; and that,
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    WA No. 2140 of 2025

    accordingly, the alleged fraudulent acts of MP24 were committed

    without RCCL’s knowledge or consent.

    12. By the Government Order bearing No.PWD 203 BMS 2025

    dated 13.08.2025 [the impugned debarment order], issued under

    Section 14-A(2) of the Karnataka Transparency in Public

    Procurements Act, 1999 [the KTPP Act] read with Rule 26-B of the

    Karnataka Transparency in Public Procurements Rules, 2000 [the

    KTPP Rules], the State debarred MP24 for three years from all

    works in the State of Karnataka and RCCL for two years from all

    PWD works in the State of Karnataka. It is material to note that

    RCCL was debarred “for deliberate connivance”, the State having

    found that RCCL had “failed to make any report against his partner

    till complaint”. The State held that RCCL “should be treated as

    abettor in the FIR”.1

    13. Aggrieved by the impugned debarment order, RCCL instituted

    W.P.No.24912 of 2025 before this Court, inter alia, seeking the

    quashing of the said order insofar as it debarred RCCL. By order

    dated 18.08.2025, the learned Single Judge granted an interim

    1
    In the impugned debarment Order, the expression “Respondent 1” denotes MP24 and
    the expression “Respondent 2” denotes RCCL, in accordance with the array of parties
    before the State Level Debarment Committee.
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    WA No. 2140 of 2025

    order staying the operation of the impugned debarment order

    insofar as it related to RCCL. The said order was operative till the

    dismissal of the writ petition.

    14. By order dated 05.11.2025, W.P.No.24912 of 2025 was de-

    linked from the connected petitions filed by MP24 and directed to be

    heard separately. By the impugned order dated 09.12.2025, the

    learned Single Judge dismissed W.P.No.24912 of 2025, with the

    express observation that the reasons recorded in the common order

    in W.P.No.25668 of 2025 and connected matters were to be read

    along with the impugned order.

    15. The relief sought by RCCL in W.P.No.24912 of 2025 was the

    quashing of the impugned debarment order dated 13.08.2025,

    insofar as it debarred RCCL for a period of two years from all PWD

    works in the State of Karnataka for the alleged submission of fake

    documents in the tender for the project.

    IMPUGNED ORDER

    16. The learned Single Judge framed the following question for

    consideration: “whether blacklisting of the petitioner by the

    respondent No.1 as per Annexure-A, requires interference by this

    Court?”

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    WA No. 2140 of 2025

    17. The learned Single Judge observed that the terms and

    conditions of the RFP play a vital role in assessing the credibility of

    a bidder, and extracted Sections 2.1.9, 2.1.15(f) and (g), 2.2.1(a)

    and (b), 2.6.2, 2.11.2, 2.11.5, 3.2.1(e) and 4.1 of the RFP, together

    with Section 5 of Appendix-V (the Joint Bidding Agreement format),

    which embodies the principle of joint and several liability of the

    parties for all obligations and liabilities relating to the project till the

    achievement of Financial Close.

    18. On the relationship between RCCL and MP24, the learned

    Single Judge observed that, upon the formation of the consortium

    and participation in the bidding process, the members are bound by

    the principle of joint and several liability; that “each member of the

    consortium, irrespective of their active / non-active / limited / lead

    bidder / advisory or any of incidental nature of participation would

    suffer penalty of disqualification, being a member of the

    consortium”; and that, as per Section 2 of Appendix-V, once the

    consortium is formed and has participated in the bidding process,

    the members are barred from revoking the joint venture/the POA/

    MoU.

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    WA No. 2140 of 2025

    19. The learned Single Judge accordingly held that the alleged

    unilateral withdrawal of RCCL from the consortium by the e-mail

    dated 16.04.2025 could not absolve RCCL, for the reasons that: (i)

    the said e-mail was not marked or sent to KRDCL; (ii) KRDCL was

    informed of RCCL’s withdrawal by the letter dated 22.05.2025,

    which was after the opening of both the Technical Bid (on

    19.04.2025) and the Financial Bid (on 16.05.2025); (iii) had RCCL

    been more cautious, nothing prevented it from informing KRDCL on

    16.04.2025 itself; and (iv) the conduct of RCCL in this regard was

    deserving of deprecation. The learned Single Judge further

    observed that the conduct of RCCL was that of a “fence sitter”,

    awaiting the outcome of the Technical Bid before disclosing the

    alleged misconduct of MP24.

    20. The learned Single Judge placed reliance upon paragraph 10

    of RCCL’s preliminary response dated 01.08.2025 to hold that

    RCCL had itself admitted that MP24 had uploaded fabricated

    documents using its credentials, and that the said admission was

    conclusive against RCCL. The court also referred to the decisions in

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    WA No. 2140 of 2025

    Nagindas Ramdas v. Dalpatram Ichharam alias Brijram2 and

    Sangramsinh P. Gaekwad v. Shantadevi P. Gaekwad3.

    21. The learned Single Judge rejected the contention that the

    principles of natural justice were violated. The court observed that

    the parameters of fairness were duly met inasmuch as a show-

    cause notice dated 24.07.2025 (received by RCCL on 30.07.2025)

    had been issued and the preliminary response dated 01.08.2025

    had been filed and considered. The court also held that, having

    regard to the joint and several liability of the consortium members,

    the “end result would be the same” — namely, the debarment of

    RCCL — even if a further opportunity of personal hearing had been

    afforded. Such an opportunity would be an “empty formality”.

    22. The learned Single Judge also held that RCCL had not

    approached the Court with clean hands, in view of the averments in

    paragraphs 12 to 14 of W.P.No.24912 of 2025, which were read as

    being contrary to RCCL’s own e-mail dated 16.04.2025. The court

    applied the principle laid down in Amar Singh v. Union of India4

    and held that RCCL was not entitled to relief under Article 226 of the

    Constitution.

    2

    (1974) 1 SCC 242
    3
    (2005) 11 SCC 314
    4
    (2011) 7 SCC 69

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    WA No. 2140 of 2025

    23. The learned Single Judge also observed that the judgments

    relied upon by Senior Counsel for RCCL — namely Managing

    Director, ECIL, Hyderabad v. B. Karunakar5, Chintamanrao v.

    State of Madhya Pradesh6, Vetindia Pharmaceuticals Limited v.

    State of Uttar Pradesh7, and Charan Lal Sahu v. Giani Zail

    Singh8, — were not applicable to the facts, in view of the admission

    made by RCCL and its conduct as a member of the consortium.

    24. Accordingly, the learned Single Judge held that

    W.P.No.24912 of 2025 was devoid of merits and liable to be

    rejected, and that the reasons assigned in the common order in

    W.P.No.25668 of 2025 and connected matters were to be read

    along with the impugned order. The writ petition was dismissed

    accordingly.

    25. Thereafter, on 23.12.2025, RCCL instituted the present

    appeal, W.A. No.2140 of 2025, before this Court, seeking the setting

    aside of the impugned order dated 09.12.2025 in W.P.No.24912 of

    2025.

    5
    1994 Supp (2) SCC 391
    6
    1950 SCC OnLine SC 34
    7
    (2021) 1 SCC 804
    8
    (1984) 1 SCC 390

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    WA No. 2140 of 2025

    SUBMISSIONS OF THE PARTIES

    26. The learned Senior Counsel appearing on behalf of RCCL

    submitted that: (i) the impugned Government Order does not

    attribute a single act of fraud to RCCL, and the alleged fabricated

    documents were work-done certificates pertaining to MP24 and

    RCCL was not concerned with that certificate; (ii) culpability in a

    penal debarment must be assessed individually, and a consortium

    member cannot be visited with vicarious penal liability in the

    absence of evidence of connivance, knowledge or active

    involvement; (iii) the principle of joint and several liability under

    Section 5 of Appendix-V relates to the performance of contractual

    obligations post-award and cannot be extended to penal liability for

    fraud; (iv) paragraph 10 of RCCL’s preliminary response attributed

    the act of uploading to MP24 and did not amount to an admission of

    joint culpability; (v) the impugned debarment order was passed

    without the approval of the Minister concerned and was, therefore,

    contrary to Rule 17 of the Karnataka Government (Transaction of

    Business) Rules, 1977; and (vi) the RFP and the JBA contemplate

    only disqualification from the subject bid, a contractual consequence

    which RCCL did not contest, and could not furnish the foundation for

    statutory debarment from all PWD works under the KTPP Act. He

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    WA No. 2140 of 2025

    contended that the learned Single Judge had conflated

    disqualification with debarment.

    27. On the finding of “connivance”, RCCL submitted that there

    can be no automatic attribution of knowledge of forgery without

    specific evidence, and that mere consent to join a consortium does

    not amount to connivance, placing reliance on Charan Lal Sahu

    (Supra) and Anvar P.V. v. P.K. Basheer9,. On the question of

    penalty, RCCL submitted that a two-year debarment was

    disproportionate to the alleged delinquency – that is, mere

    participation in the consortium, without any direct involvement. The

    learned senior counsel referred to Vetindia Pharmaceuticals

    Limited (Supra) and contended that an order entailing serious civil

    consequences must satisfy the proportionality test. He relied on the

    decision in Chintamanrao (Supra) and submitted that, absent an

    express statutory provision, the requirement to afford a fair

    opportunity is implicit.

    28. The learned AAG countered the aforesaid submissions. He

    argued that RCCL, being a member of the consortium which had

    uploaded a fabricated document, was liable to debarment along with

    9
    (2014) 10 SCC 473

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    WA No. 2140 of 2025

    MP24; that the joint and several liability of the members of the

    consortium extended not merely to the performance of post-award

    obligations but to the veracity and authenticity of the documents

    submitted in support of the bid. He submitted that a consortium is a

    relationship of mutual agency analogous to a partnership, in which

    the fraud of one member is also imputed to the others. He referred

    to the decision of the Supreme Court in New Horizons Ltd. v.

    Union of India10. He also emphasised that under Section 2 of

    Appendix-V, members of a consortium are barred from revoking the

    joint venture, the POA, or MoU once the tender document has been

    filed.

    29. He submitted that the principles of natural justice were duly

    complied with. Notices were issued to RCCL, it had responded to

    the notices and was also afforded an opportunity to be heard.

    REASONS AND CONCLUSION:

    30. RCCL has challenged the impugned debarment order on

    several grounds, which are similar to the grounds advanced by

    MP24 in its writ appeals (W.A. 2026/2025 and W.A. 2028/2025).

    10

    (1995) 1 SCC 478

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    WA No. 2140 of 2025

    31. The contentions that the impugned debarment order is

    passed in violation of the principles of natural justice; that the

    impugned debarment order is contrary to Rule 26-B of the KTPP

    Rules as the State Government has not independently evaluated

    the recommendations of the SLDC; and that the impugned

    debarment order has not been issued by a person authorized under

    the Karnataka Government (Transaction of Business) Rules, 1977,

    are covered by the decision rendered in the connected appeals

    (W.A.No.2026/2025 and W.A.No.2028/2025). These contentions are

    rejected for the reasons set out in the said decision, which may be

    read as a part of the present judgment.

    32. RCCL’s principal defence against its debarment is that it was

    not liable for furnishing a false certificate as the bid documents were

    furnished by MP24 without sharing the same with it; and that the

    submission of the tender on its behalf was unauthorised, as it had

    withdrawn from the consortium prior to furnishing the said bid.

    KRDCL, as well as the SLDC, did not accept that RCCL could

    absolve itself of the liability for furnishing a false certificate, primarily

    because the bid was also submitted on RCCL’s behalf, and it had

    not communicated any reservations as to the bid to KRDCL prior to

    the opening of the technical bid.

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    WA No. 2140 of 2025

    33. The tender documents expressly provide that the joint venture

    members would be jointly and severally responsible for the

    correctness, veracity and authenticity of the documents and

    information submitted in support of the bid.

    34. Clause 2.1.15 of the RFP expressly required the consortium

    members to enter into a Joint Bidding Agreement substantially in the

    form stipulated in Appendix V of the RFP. Paragraph 2.1.15(g) of

    the RFP is relevant and is set out below:

    “(g) members of the Consortium shall enter into a
    binding Joint Bidding Agreement, substantially in
    the form specified at Appendix-V (the “Jt. Bidding
    Agreement”), for the purpose of submitting a Bid.

    The Jt. Bidding Agreement, to be submitted along
    with the Application, shall, inter alia:

    i. convey the intent to form an SPV, solely for the
    purpose of domiciling the Project and no other
    purpose, with shareholding/ownership equity
    commitment(s) in accordance with this RFP, which
    would enter into the Concession Agreement and
    subsequently perform all the obligations of the
    Concessionaire in terms of the Concession
    Agreement, in case the concession to undertake
    the Project is awarded to the Consortium;

    ii. clearly outline the proposed roles and
    responsibilities, if any, of each member;

    iii. commit the minimum equity stake to be held by
    each member;

    iv. commit that each of the members, whose
    experience will be evaluated for the purposes of
    this RFP, shall subscribe to 26% (twenty six per

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    WA No. 2140 of 2025

    cent) or more of the paid up and subscribed equity
    of the SPV and shall further commit that each such
    member shall, for a period of 2 (two) years from the
    date of commercial operation of the Project, hold
    equity share capital not less than: (i) 26% (twenty
    six per cent) of the subscribed and paid up equity
    share capital of the SPV: and (ii) 5% (five per cent)
    of the Total Project Cost specified in the
    Concession Agreement;

    v. members of the Consortium undertake that they
    shall collectively hold at least 51% (fifty one per
    cent) of the subscribed and paid up equity of the
    SPV at all times until two years of the commercial
    operation date of the Project; and

    vi. include a statement to the effect that all members of
    the Consortium shall be liable jointly and severally
    for all obligations of the Concessionaire in relation
    to the Project until the Financial Close of the
    Project is achieved in accordance with the
    Concession Agreement; and
    [emphasis added]

    35. Section 2.1.9 of the RFP also expressly provides that, if the

    bidder is a consortium, the members would be required to furnish

    the POA in favour of any member, who would be identified as the

    lead member. The said paragraph is set out below:

    “2.1.9 In case the Bidder is a Consortium, the
    Members thereof should furnish a Power of
    Attorney in favour of any Member, which Member
    shall thereafter be identified as the Lead Member,
    in the format at Appendix IV. In case the Bidder is a
    Consortium, Joint Bidding Agreement in the format
    at Appendix V shall be submitted by the Bidder.”

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    WA No. 2140 of 2025

    36. In terms of the RFP documents, MP24 and RCCL had

    entered into a JBA, and RCCL had furnished the POA in favour of

    MP24, which was identified as the Lead Member.

    37. The JBA also clearly stipulated that the parties would be

    jointly and severally responsible for all obligations and liabilities

    relating to the Project and in accordance with the terms of the RFP.

    38. Clause 5 of the JBA is reproduced below:

    “5. Joint and Several Liability

    The Parties do hereby undertake to be jointly and
    severally responsible for all obligations and
    liabilities relating to the Project and in accordance
    with the terms of the RFP and the Concession
    Agreement, till such time as the Financial Close for
    the Project is achieved under and in accordance
    with the Concession Agreement.”

    39. The bid was submitted pursuant to the POA granted by RCCL

    in favour of MP24. Plainly, the same is binding on RCCL. Although

    RCCL claims to have revoked the POA, the formal revocation, by

    way of legal notice dated 27.04.2025, came after the bid was

    submitted and the technical bids were opened. The POA was valid

    and subsisting on the day of submission of the bid.

    40. Although RCCL claims that it had withdrawn MP24’s authority

    to furnish the bid by an e-mail dated 16.04.2025, no such intimation

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    WA No. 2140 of 2025

    was furnished to KRDCL. RCCL claims that it issued a legal notice

    dated 27.04.2025 terminating the MoU with MP24 dated 02.04.2025

    and also revoked the POA. This too was not communicated to

    KRDCL at the material time. The technical bids were opened on

    19.04.2025. Even at that stage, RCCL did not inform KRDCL that it

    was not standing by the consortium’s bid or that it had any

    reservations regarding the documents submitted with the bid. The

    financial bid was opened on 16.05.2025. On 19.05.2025, KRDCL

    received BVEPL’s complaint regarding furnishing of a false work

    experience certificate. Thereafter, RCCL issued a letter dated

    22.05.2025 requesting that the tender submitted by MP24 be

    rejected, as it was submitted without the consent or knowledge of

    RCCL.

    41. KRDCL was neither informed of any fraudulent submission of

    documents nor of the withdrawal of MP24’s authority to submit a bid

    prior to the opening of the bids.

    42. On the facts, the KRDCL and the SLDC rejected the

    contention that RCCL was absolved of accountability for the bid

    furnished by the consortium.

    – 22 –

    WA No. 2140 of 2025

    43. Therefore, we find no fault with the conclusion of KRDCL and

    the SLDC that RCCL is also accountable for the consortium’s bid.11

    44. We may note that the SLDC has also made an allowance for

    the relatively lesser role attributed to RCCL in furnishing the false

    certificate and restricted the debarment to a period of two years only

    for PWD works in the State of Karnataka instead of three years for

    all works in the State of Karnataka, as was done in the case of

    MP24.

    45. We find no grounds to interfere with the decision of the

    learned Single Judge.

    46. The appeal is, accordingly, dismissed.

    Sd/-

    (VIBHU BAKHRU)
    CHIEF JUSTICE

    Sd/-

    (C.M. POONACHA)
    JUDGE

    KPS/KMV

    11
    Section 208 of the Indian Contract Act, 1872



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