BIOGENETIC DRUGS PRIVATE LIMITED Vs. NATIONAL HEALTH MISSION

JUDGEMENT

(1.) By invoking the extra-ordinary jurisdiction under Article 226 of the Constitution of India, the writ petition has been instituted challenging a Show Cause Notice dtd. 21/7/2017 and an order dtd. 20/9/2017, both issued under the hand of the Mission Director, National Health Mission [NHM], Assam. By the Show Cause Notice dtd. 21/7/2017, the petitioner was asked to show cause as to why there was delay from the end of the petitioner to supply the essential drugs pursuant to two Purchase Orders, dtd. 21/1/2017 and 23/3/2017 respectively, and as to why the petitioner should not be blacklisted for non-performance in supplying essential drugs in the State causing delay in the programme, 'Free Drug Service' Scheme of the Government of India. By the Order dtd. 20/9/2017, the petitioner has been disqualified to participate in any tender processes initiated by the NHM, Assam for a period of 5 [five] years from the date of the said Order stated to be passed in terms of Clause 17 of the Bid Document.

(2.) The office of the Mission Director, NHM, Assam initiated a National Competitive Bidding [NCB] process by publishing a Tender Notice for supply of drugs vide Tender No. NHM/PROC/RC-DRUGS/2268/2014-15/13559 dtd. 11/11/2014 ['the Tender Notice', for short]. By the Tender Notice dtd. 11/11/2014, sealed tenders in Two-Bid system [Technical Bid and Price Bid] were invited from manufacturers or their authorized distributors/dealers for finalization of rate contracts for supply of drugs to Government Health Institutions located in different districts of Assam. As per the Tender Notice, delivery of ordered items would be effected at District Drug Stores, located in 27 different districts of Assam. As per the Bid Document of the Tender Notice, a Pre-Bid Meeting was scheduled on 25/11/2014 and the last date of submission of tender was till 02-00 p.m., 8/12/2014. By a Corrigendum No. 1 dtd. 8/12/2014, the last date and time of submission of tenders were extended till 02-00 p.m., 16/12/2014. By the said Corrigendum, certain modifications/amendments were carried out in the original Bid Document issued pursuant to the Tender Notice dtd. 11/11/2014.

(3.) It is the case of the petitioner that after the petitioner declared as the successful bidder, the respondent NHM started issuing purchase orders in favour of the petitioner and in terms of Clause 13 of the Bid Document, the petitioner was required to sign an agreement as per Annexure-XVI for each such order. Thereafter, the petitioner required to execute the purchase orders placed by the respondent NHM at various districts of the State of Assam within the stipulated time period. As per Clause 13 of the Bid Document, the successful bidder had to execute an agreement as per Annexure-XVI by following the formalities prescribed therein.