BASANT GOEL Vs. UNION OF INDIA

JUDGEMENT

(1.) The Appellant is the proprietor of one M/s Goel Medicos, who entered into a contract with Respondent No. 3 for supply of medicines to the Sonipat Wellness Centre of Central Government Health Scheme ["CGHS"]. However, the contract was later terminated and the performance security was forfeited on the ground of corrupt and fraudulent practices. In addition, M/s Goel Medicos was declared ineligible for a period of two years from participating in any tender or contract awarded by the CGHS, across India. Dissatisfied with this decision, the Appellant filed a writ petition challenging the termination as well as debarment. While the Appellant has achieved partial success as the Learned Single Judge, by way of judgement dtd. 11/7/2023 [hereinafter, "impugned judgement"], has set aside the debarment order, he remains aggrieved with rejection of his prayer against forfeiture of Performance Bank Security [hereinafter, "PBS"]. In that light, Appellant has preferred the present appeal against the impugned judgment, assailing the PBS forfeiture.

(2.) M/s Goel Medicos is a well-established and renowned entity in the business of retail pharmacy, pharmacy distribution, and institutional supply of medical/ pharmaceutical products. They are also empanelled with CGHS as an authorized local chemist and are responsible for supplying allopathic medicines to certain wellness centres situated in the Delhi-NCR region.

(3.) Respondents issued a tender on 8/4/2020 for the appointment of an Authorized Local Chemist for eight wellness centres of CGHS. M/s Goel Medicos, owned and controlled by the Appellant, emerged as the successful bidder for the wellness centre at Sonipat. Amidst the tender process, Ms. Usha Goel, who was the previous proprietor of M/s Goel Medicos, executed a Gift Deed on 31/7/2020, thereby transferring the ownership, assets, and all interests and liabilities of the establishment to the Appellant [Mr. Basant Goel]. Immediately thereafter, on 4/8/2020, the Respondents communicated their acceptance of M/s Goel Medicos' offer, which was responded to by the Appellant on the same day. Consequent thereto, M/s Goel Medicos proceeded to complete the formalities under the tender, which included execution of an Agreement with Respondent No. 3. During this process, an old employee, Mr. Akash Jain, unintentionally and mistakenly obtained a Power of Attorney ["PoA"] dtd. 18/8/2020 from the previous proprietor - Ms. Usha Goel, instead of the Appellant, which authorized him to handle the tender formalities on behalf of M/s Goel Medicos.