PANACEA PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The present petition is directed against the respondents for issuance of a writ of mandamus commanding them to implement the policy for small scale units fully in tern's of the circular issued by the Government of India dated 18th September, 1990 which is filed as Annexure-C1 to the writ petition. The said circular may be reproduced as follows : Dr. N.K. Sengupta, Ministry of Commerce Department of Supply Nirman Bhwan, New Delhi. D.O. No. 1 (...)/90 AJEC 18th September, 1990 You are aware that Government of India provides certain benefits to the small scale sector units with a view to assist them in marketing their products. The small scale units registered with the National Small Industries Corporation under single point registration scheme are provided the following facilities : 1. Issue of tender sets free of cost. 2. Exemption from payment of earnest money. 3. Waiver of security deposit upto the monetary limit for which the unit is registered. 4. Price preference upto 15 per cent over the quotation of large scale units on merits.

(2.) The petitioners are engaged in manufacturing of pharmaceutical products, i.e. medicines as permitted under the Drug Licences held by them and are registered as a small scale unit with the Government of Orissa under Registration Certificate No. 151600047 dated 29th January, 1991. The main contention of learned Counsel for the petitioners is that the petitioners should be given 15% price preference over the large scale units for the medicines supplied on the basis of the tender issued by respondent No. 3. The terms and conditions for running the contract are referred to in the tender notice filed as Annexure-I to the writ petition. Respondent No. 3, Employees State Insurance Corporation is responsible for procuring medicines for its Hospitals and Centres and are entitled to formulate its own terms and conditions for this kind of contract. Counter affidavit has been filed by respondent No. 3 wherein the pleas of the petitioners are repudiated. Paragraphs 4,11,12 and 13 of the counter affidavit read as follows:

(3.) A short affidavit has also been filed by Mr. M.S. Mina, Director (EP&M) in the Office of the Development Commissioner, Small Scale Industries, Department of S.S.I, Agro and Rural Industries, Ministry of Industry, Government of India, wherein it is stated in reply to paragraph 16 as follows :