PURE PHARMA LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is aggrieved by the decision dated 21.3.2006 communicated by the respondent, Central Government, which decided to suspend business with it (the petitioner) pending full enquiry into the allegations against it. The writ petitioner had earlier moved this court by filing CWP No. 12323/2005 complaining that the Central Government had suspended business with it, without affording reasonable opportunity or observing any principles of natural justice. By order dated 4.8.2005 the earlier decision dated 26.6.2005 was quashed; the Central Government was directed to afford opportunity before making any adverse order.

(2.) After the decision of this court in the previous writ proceedings, the Central Government issued a show cause notice to the petitioner on 18.8.2005. This show cause notice concerned allegations of supply of 35.8 million units of pharmaceutical products for use in a World Bank assisted Reproductive and Child Health Care Project in the State of Tamil Nadu. The procuring agency, was Tamil Nadu Medical Services Corporation Limited. The supplies were to be made sometime in the year 2001; the tenders were apparently furnished on 15.10.2001. It was alleged that the petitioner concern and a competitor M/s Nestor Pharmaceuticals had quoted an identical rate namely Rs. 9.84 per 100 tablets.

(3.) The Tamil Nadu Medical Services Corporation Limited had allegedly submitted an internal report to the international lender, i.e. the World Bank, on the basis of its observations, indicating that though the rival tenderers had quoted similar rates, during post tender negotiations they both agreed to supply the product at Rs. 6.09 per 100 units. The show cause notice of the Central Government was apparently premised on the internal report. It also alleged that the petitioner had indulged in forgery and fabrication of certain documents i.e. certificates furnished by public authorities in the State of Madhya Pradesh.