Dismissed¶¶52

Grasim Industries Limited v. State of Karnataka

Karnataka HC3 Jun 2025WP/10971/2018

Case brief

AI extract

What is this about?

Grasim Industries Ltd. v. State of Karnataka (Energy Department), KREDL, G.V. Balaram and State Bank of India — writ petition under Articles 226 and 227 of the Constitution of India challenging invocation of bank guarantees dated 04.01.2018 furnished as bid security in KREDL Bid No.B2543457; refund of Rs.20,40,00,000 bid security (Rs.19,40,00,000 DDs issued by SBI on invocation plus Rs.1,00,00,000 Demand Draft Nos.062843–062852) and Rs.50,00,000 compensation sought; petition dismissed as infructuous on joint submission of counsel; no adjudication on validity of the bank guarantee invocation; Karnataka High Court, Suraj Govindaraj J, 03.06.2025.

What did the court decide?

None — petition dismissed as infructuous on the joint submission of all counsel; no relief granted. ¶¶52

Grasim Industries Limited Vs State of Karnataka — Company and Corporate | Karnataka HC (2025)

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NC: 2025:KHC:18924 WP No. 10971 of 2018

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 3^RD DAY OF JUNE, 2025

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BEFORE

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THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 10971 OF 2018 (GM-TEN)

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BETWEEN:

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GRASIM INDUSTRIES LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956 HAVING ITS OFFICE AT ADITYA BIRLA CENTRE 'A' WING, 2^ND FLOOR, S.K. AHIRE MARG, WORLI MUMBAI-400030 REPRESENTED BY ITS AUTHORIZED SIGNATORY - MR.PAWAN JAIN

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…PETITIONER

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(BY SMT. PRIYA KALE FOR

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SRI. B.M.MOHAN KUMARA, ADVOCATE)

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AND:

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Digitally signed by SHWETHA RAGHAVENDRA

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Location: HIGH COURT OF KARNATAKA

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STATE OF KARNATAKA ENERGY DEPARTMENT VIKASA SOUDHA BENGALURU - 560 001 REPRESENTED BY THE ADDITIONAL CHIEF

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SECRETARY

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KARNATAKA RENEWABLE ENERGY DEVELOPMENT LIMITED (KREDL) #39, "SHANTIGRUHA" BHARATH SCOUTS & GUIDES BUILDING PALACE ROAD BENGALURU-560 001 REPRESENTED BY MANAGING DIRECTOR

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MR. G. V. BALARAM MANAGING DIRECTOR

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NC: 2025:KHC:18924 WP No. 10971 of 2018

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HC-KAR

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KARNATAKA RENEWABLE ENERGY DEVELOPMENT LIMITED, GUIDES BUILDING PALACE ROAD BENGALURU-560 001

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STATE BANK OF INDIA CORPORATE ACCOUNTS, GROUP-BKC, THE CAPITAL, A WING, 16^TH FLOOR, B.K.C BANDRA (E) MUMBAI-400051 REPRESENTED BY DEPUTY MANAGER (TRADE FINANCE)

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…RESPONDENTS

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(BY SRI. M.SRINIVAS KUMAR, HCGP, FOR R1; SRI. SAMARTH KASHYAP, ADVOCATE FOR R2; SRI. M.V.CHARATI, ADVOCATE FOR R3; SRI. B.V.GOPAL, ADVOCATE FOR R4)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT THE INVOCATION OF THE BANK GUARANTEES DATED 04.01.2018 VIDE ANNEX-D TO D10 SUBMITTED BY THE PETITIONER TO THE R-2 TOWARDS BID SECURITY WITH REGARD TO THE BID NO.B2543457 IS ILLEGAL, NON-EST, NULL AND VOID and DIRECT R-2 AND R-3 TO RETURN FORTHWITH THE DDs ISSUED BY R-4 UPON INVOCATION OF THE BANK GUARANTEES, AMOUNTING TO RS.19,40,00,000/WHICH WERE SUBMITTED BY THE PETITIONER AS BID SECURITY IN BID NO.B2543457 AND ETC.,

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ

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NC: 2025:KHC:18924 WP No. 10971 of 2018

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HC-KAR

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ORAL ORDER

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The petitioner is before this Court seeking for the

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following reliefs:

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" i.) Declare that the invocation of the bank guarantees bearing Nos. 1637618BG0000021, 1637618BG0000022, 1637618BG0000023, 1637618BG0000027, 1637618BG0000028, 1637618BG0000029, 1637618BG0000030, 1637618BG0000031, 1637618BG0000032, 1637618BG0000033, 1637618BG0000034 DATED 04.01.2018 VIDE ANNEX-D TO D10 SUBMITTED BY THE PETITIONER TO THE R-2 TOWARDS BID SECURITY WITH REGARD TO THE BID NO.B2543457 IS ILLEGAL, NON-EST, NUL AND VOID;

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ii.) Issue a Writ of Mandamus or any other appropriate Writ or Order or Direction to the Respondent No.2 and Respondent No.3 to return forthwith the DDs issued by the Respondent No.4 upon invocation of the Bank Guarantees, amounting to Rs.19,40,00,000/(Rupees Nineteen Crore Forty Lakh Only) which were submitted by the Petitioner as Bid security in Bid No.B2543457;

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iii.) Issue a Writ of Mandamus or any other appropriate Writ or Order or Direction to the Respondent No.2 and Respondent No.3 to forthwith return the Demand Draft Nos.062843, 062844, 062845, 062846, 062847, 062848, 062849, 062850, 062851, 062852, [Annexure-E] amounting to Rs.1,00,00,000/- (Rupees One Crore Only) which were submitted by the Petitioner as Bid Security in Bid No.B2543457;

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iv.) In the alternative, if the Respondent No.2 has already encashed the Bank Guarantee DDs which have been issued by the Respondent No.4 as against the invocation of the Bank Guarantee and the Demand Drafts cumulatively amounting to Rs.20,40,00,000/(Rupees Twenty Crore Forty Lakh Only); issue a Writ of Mandamus or any other appropriate Writ or Order or Direction to the Respondent No.2 to refund the bid security amount of Rs.20,40,00,000/- (Rupees Twenty Crore Forty Lakh Only) which was submitted by the Petitioner in the form of Bank Guarantees and Demand Drafts;

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v.) Direct the Respondent Nos.2 and 3 jointly and severally to compensate the Petitioner in a sum of Rs.50,00,000/- for acting

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NC: 2025:KHC:18924 WP No. 10971 of 2018

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HC-KAR

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highhandedly against the Petitioner and depriving the Petitioner of its

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money;

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