Oswal Medical Stores & Anr v. UOI & Ors

T.S.THAKUR,J ARUNA SURESH, J APRIL 11, 2008 anb

* IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 18832-33/2006 Date of Decision: 11 th April, 2008 OSWAL MEDICAL STORES & ANR. ..... Petitioners Through: Mr. Shashi Bhushan, adv. versus UOI & ORS. ..... Respondents Through: Mr. R.N. Singh, Adv. with Mr. R.V. Sinha, adv. for R-1 to 4 Mr. Abhinit Das, adv. for R-5. CORAM: HON'BLE MR. JUSTICE T.S. THAKUR HON'BLE MS. JUSTICE ARUNA SURESH 1. Whether reporters of local papers may be allowed to see the judgment? Not Necessary 2. To be referred to the Reporter or not? Not Necessary 3. Whether the judgment should be reported in the Digest? Not Necessary T.S. Thakur, J: A tender submitted by the petitioner in response to a notice issued by the Joint Director, Central Government Health Scheme, Meerut for supply of medicines to the beneficiaries of the said scheme has been rejected on the ground that the petitioner did not have the requisite license for the sale of the allopathic drugs under the Drugs and Cosmetics Act, 1940. Aggrieved by the said rejection, the petitioner has filed the present writ petition inter alia for a writ of certiorari quashing the order of rejection and for a mandamus directing the respondents to appoint him as a local chemist for the supply of medicines to Central Government Health Scheme beneficiaries. 2. In terms of a tender notice dated 5th September, 2006, the Central Government Health Scheme, Surajkund Road, Meerut invited bids for day to day supply of drugs and medicines to the CGHS Dispensaries situated in Meerut and other dispensaries that may be opened from time to time. The successful bidder was to be appointed as an authorized chemist for a period of 2 years from the date of appointment unless short-closed by the Joint Director, CGHS, Meerut. Apart from other stipulations, the tender notice required the bidders to furnish copies of the relevant documents including a valid license in the specified form for various categories of allopathic drugs issued by the Drug Control Authority of the State under the Provisions of the Drugs and Cosmetics Act, 1940. Clause 24 of the General Conditions of the contract was in the following words: "24. DOCUMENTS ESTABLISHING BIDDERS ELIGIBILITY AND QUALIFICATION: Bidder shall furnish as part of its bid, self attested copies of the following documents establishing the bidder's eligibility to bid and its qualification to perform the contract, if the bid is accepted, bidder shall produce originals for verification: (i) A no conviction certificate from the State Drug Controller stating that there is no case is pending against the firm under the Drugs and Cosmetics Act 7 & the rules made thereunder as well as under Drugs Price Control order issued from time to time. (ii) The supplier should hold valid licenses in specified form for various categories of Allopathic drugs issued by the Drug Control Authority of the state under the provisions of Drugs and Cosmetics Act, 1940. (iii) A copy of PAN alloted to the firm. (iv) Sales Tax registration and clearance certificate for the last three years from the concerned STO (Sales Tax Officer) (v) The turnover of all bidders should be atleast Rs.10(Ten) Lakh only in the last financial year. The bidder must submit documentary evidence like Profit and loss A/C, audited balance sheet in support of their claim. (vi) Bank A/c details – A/c Number, Type of A/c Bank's name and Address with MICR code on the letter pad of the firm to facilitate the payment through ECS."(emphasis supplied) 3. The petitioner submitted a tender which was, in the opinion of the Purchase Committee appointed for the purpose, non-compliant with the terms and conditions of the notice aforementioned inasmuch as the petitioner did not have a duly renewed license in Form 21(C) for sale and distribution of medicines as per the Drugs and Cosmetics Act, 1940 – a requirement that was mandatory. This resulted in the rejection of the tender submitted by him, aggrieved whereof, the petitioner has filed the present writ petiti