Kishan Chand & Sons v. Govt. of NCT of Delhi & Anr

T.S. THAKUR,J ARUNA SURESH, J JANUARY 07, 2008 mr

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* IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6015/2007 Date of Decision: 7 th January, 2008 KISHAN CHAND & SONS ..... Petitioner Through: Mr. S.C. Singhal, adv. versus GOVT. OF NCT OF DELHI & ANR ..... Respondent Through: Ms. Zubeda Begum,Adv. for GNCT with Ms. Iram Majid,Adv. 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? Yes 2. To be referred to the Reporter or not? Yes 3. Whether the judgment should be reported in the Digest? Yes Per Thakur,J (Oral) Lok Nayak Jai Prakash Hospital in Delhi is one of the largest hospitals in Asia. The number of persons treated in the hospital both as indoor and outdoor patients is, therefore, understandably very large and the requirement of surgical equipments and other materials like bandages proportionately higher. These equipments, in particular, bandages of different types are, in the usual course, procured by the Central Procurement Agency (CPA) and supplied to the hospitals in Delhi. In the event of a shortfall of such supplies by the Central Procurement Agency, the hospital authorities are empowered to make purchases after following the requisite formalities and processing the papers through the Purchase Committee appointed for the purpose. 2. For the year 2006-2007, the hospital felt the need for 1 of purchasing surgical bandages and accordingly initiated the process of procuring the same through the Purchase Committee constituted for the purpose. The Purchase Committee appears to have initially fixed an annual turnover of Rs.10 crores as a condition of eligibility for any manufacturer of such bandages to submit a tender. It is common ground that in response to the tenders invited on that condition of eligibility, only two quotations were received thereby forcing the purchase committee to reduce the turnover from Rs.10 crores to Rs.5 crores. A fresh tender notice was on that basis floated by the Medical Superintendent of the hospital which was published in four leading newspapers in their issue dated 27th July, 2007. The notice invited sealed tenders for the purchase of the equipment mentioned in the same including surgical dressing in the prescribed format of a tender document which, according to the tender notice, could be purchased on a cash payment of Rs.500/- from the procurement Section of the hospital between 27th July, 2007 and 16th August, 2007 upto 2 p.m. The tender notice required sealed tender to be dropped in the box prescribed for the same placed in the purchase section of the Procurement Cell up to 2 p.m. on 17th August, 2007 which would then be opened on 17th August, 2007 at 3 p.m. in presence of the tenderers 3. The petitioner is a manufacturer of surgical dressings and claims to be making some supplies to the hospital mentioned above on the basis of a limited tender floated for that purpose. It has, in the present writ petition, challenged the stipulation contained in the tender notice requiring the manufacturers to have a turnover of Rs.5 crores as a condition of eligibility on the ground that the same is totally illogical, irrational and arbitrary. A writ of certiorari quashing the tender notice and the condition of annual turnover with a 2 of mandamus to respondent No. 2 to call fresh tenders without the mandatory condition of turnover has, therefore, been prayed for in the present petition. 4. In response to the show cause notice issued by this Court, the respondents have appeared and contested the writ petition by filing a counter affidavit. According to the respondents, the stipulation regarding annual turnover of the manufacturer is neither arbitrary nor irrational as alleged by the petitioner. It is, on the contrary, intended to ensure that only manufacturers of good financial standing stay as players in the ongoing process and that the person eventually emerging successful as the lowest tenderer is in a position, on account of his large turnover, to make