CAREWELL PHARMA Vs. MANAGING DIRECTORTNMSC

JUDGEMENT

(1.) This writ petition has been filed for the issue of a writ of certiorarified mandamus to call for the records relating to order in Ref.No.17817/tnmsc/qc/99-2000 dated 4.10.1999 and the consequential order passed in qcd No.0005/tnmsc/qc/99-2000 dated 22.10.1999 on the file of the respondent, quash the same and direct the respondent to pay the values for the supply of drugs made by the petitioner.

(2.) The relevant facts for the purpose of disposal of this writ petition is as follows:- The petitioner is a registered firm, which produces pharmaceutical drugs. The petitioner manufactures drugs from the year 1987 onwards. The respondent placed orders for the supply of co-trimoxazole suspension in P.O.Nos.F0253 dated 6.8.1996, F0477 dated 23.9.1997 and F0727 dated 20.10.1997. Pursuant to the above supply orders, the petitioner supplied the same to the respondent and delivered it to various places at Dindigul, Pudukottai, Trichy, Kancheepuram and Coimbatore wear houses and all the supplies were effected before December 1997. As per their Rules, the petitioner also had control sample bottles for each batch. While so, on 27.7.1999, the respondent sent a show cause notice complaining that the supply of the syrup, Co-trimoxazole, in batch Nos. L055, L056, L066 and L073, were not of standard quality and further alleged that the said supplies observed colour changes with unpleasant odour. Immediately the petitioner had the analysis done at M/s. MICAL and the report revealed that there was no such defect as alleged by the respondent. The petitioner sent a letter on 11.8.1999 and informed that the supplies were of standard quality and offered to replace the colour changed bottles. However, the respondent sent a letter on 7.9.1999 and again on 4.10.1999 blacklisting the petitioner from entering into the contract for supply of co-trimoxazole suspension for a period of five years. Further, by letter dated 22.10.1999, the respondent ordered deduction of Rs.3,78,820.80 being the total value of the supplies made by the petitioner. The petitioner sent a letter dated 14.10.1999 requesting for cancellation of the orders, but no reply was received. Therefore, the present writ petition has been filed.

(3.) In the counter affidavit filed by the respondent, it is stated that the respondent is the nodal agency set up by the Government of Tamil Nadu to procure the essential drugs. The respondent placed orders with the petitioner for the supply of co-trimoxazole suspension in P.O.Nos.F0253 dated 6.8.1996, F0477 dated 23.9.1997 and F0727 dated 20.10.1997. These orders were all effected in terms of the tender notification. The respondent placed orders for supply of co-trimoxazole vide several purchase orders. Pursuant to the same, supplies have been effected from December 1997 and delivered at various wear houses. It is further stated in the counter affidavit that it is true, the respondent issued a show cause notice dated 27.7.1999, since they found that the supplies were not of standard quality, as the same had observed colour changes with unpleasant odour. Being the public body, the respondent must ensure that the drugs and medicines supplied to them are of standard quality. The action initiated against the petitioner is only in public interest and there was no violation of the principles of natural justice. It is further stated in the counter affidavit that according to the conditions of supply, the goods that were supplied should be valid and usable till 31.9.2000. But even before the due date, the said syrup was found to be a sub standard quality. The supplies, that were sent for analysis, confirmed the failure of the standards of the batches referred therein, as it found to contain fungal group. Therefore, the respondent has passed the order in accordance with the terms and conditions of tender.