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2002 Supreme(AP) 1398

Andhra Pradesh High Court
Judges : J.CHELAMESWAR
Bharat Biotech International Limited, hyderabad - Appellant
Versus
A.P.Health and Medical Housing and Infrastructure development Corporation, Hyderabad - Respondent
Decided On : 12-10-02

Headnote:

Drugs and Cosmetics Act, 1940 - Section 3 - Article 14 - Arbitrary - Illegal - Rights - Tender - Qualification - Certificate - Violating - First petitioner is a Company and the second petitioner is shareholder of first petitioner-Company - First petitioner-company is engaged in business of manufacture and sale of vaccines and drugs - Company s registered office is at Hyderabad and its manufacturing unit is at Turkapally Village Shameerpet Mandal ranga Reddy District - First petitioner- company has a manufacturing capacity of 100 million doses of Hepatitis Vaccine - It is stated in affidavit filed in support writ petition that first petitioner - Company commenced its commercial production - It is further asserted in affidavit that first petitioner-Company has all necessary licenses and permits to carry on activity of manufacture and sale of various vaccines and drugs as required law of land - Held, Court shall assume for sake of argument that belief of State that a who pre-qualified manufacturer s product would be of a higher standard is justified still State will have to explain the reasons which prompted the state to call for tenders only from domestic manufacturers with who pre- qualification - For by making such a stipulation State obviously overlooked cost factor which even according State was a relevant factor in the previous year - No explanation is forthcoming from State to justify stipulation to procure material from only a domestic manufacturer with such pre-qualification - Therefore court find it difficult to accept submission state that impugned stipulation is inherently a rationale stipulation - Writ Petition allowed

J. CHALAMESWAR, J.

( 1 ) THE present writ petition is filed with the prayer as follows:". . . . . . . PLEASED to pass an order or order or writ more particularly one in the nature of writ of mandamus declaring the action of the respondent in imposing the stipulation of WHO-pre-qualification certificate for participating in the tender process vide short tender Notice No. 10/hm HI DC/drugs Wing/ 2002-2003, dated 28-10-2002 as arbitrary, illegal and violative of the rights of the petitioner under Articles 14 and 19 (l) (g) of the Constitution of India and consequently direct the respondent to consider the petitioner s tender filed in response to Short tender Notice No. lo/hmhidc Drugs Wing/ 2002-2003 dated 28-10-2002 without regard to WHO-pre-qualification Certificate and pass such other order or orders as this Honourable court deems fit and proper in the interest ofjustice. "

( 2 ) THE first petitioner is a Company and the second petitioner is the shareholder of the first petitioner-Company. The first petitioner-company is engaged in the business of manufacture and sale of vaccines and drugs. The company s registered office is at hyderabad and its manufacturing unit is at turkapally Village, Shameerpet Mandal, ranga Reddy District. The first petitioner- company has a manufacturing capacity of 100 million doses of Hepatitis Vaccine. It is stated in the affidavit filed in support of the writ petition that the first petitioner- company commenced its commercial production in the year 1998. It is further asserted in the affidavit that the first petitioner-Company has all the necessary licences and permits to carry on the activity of manufacture and sale of various vaccines and drugs as required under the law of land.

( 3 ) THE first respondent is a State owned Corporation. The second respondent is the State of Andhra Pradesh. Third respondent who got himself impleaded in the present writ petition is trade rival of the first petitioner, which is also manufacturing hepatitis-B Vaccine.

( 4 ) IT appears from the affidavit that the Government of Andhra Pradesh took up a programme called immunization strengthening Progamme to immunize the citizens of the State from Hepatitis-B by administering a vaccine called Hepatitis-B vaccine. A philanthropic organisation known as Bill and Melinda Gates Foundation contributed an amount of Rs. 50. 65 crores and the Government of Andhra Pradesh is committed to contribute an amount of rs. 18. 67 crores over a period of five years, commencing from 2001. It appears that the said project was launched in six districts of State of Andhra Pradesh during the month of November, 2001. Those six districts are Anantapur, Kurnool, Cuddapah, Chittoor, mahaboobnagar and Guntur.

( 5 ) FOR implementing the above mentioned programme, the Government of andhra Pradesh requires the vaccine and therefore the first respondent issued a paper notification on 30-10-2002 calling for tenders for the supply of Hepatitis-B vaccine. The terms of the said tender notification are not relevant for the present purpose, except Condition No. 1 which reads as follows:"the A. P. Health and Medical Housing and infrastructure Development Corporation is inviting tenders for supply of Hepatitis B vaccine from Primary manufactures in India with WHO pre-qualification only"

( 6 ) FROM the above condition, it is clear that the Govrnment invited tenders for the supply of Hepatitis-B Vaccine only from the primary manufacturers in India with further condition that such primary manufacturers of vaccine should possess who pre-qualification.

( 7 ) THE subject matter of the writ petition is only the above extracted condition No. 1 of the tender notification. The petitioner challenges the stipulation of the above mentioned condition on the ground that it is arbitrary, violative of Article 14 and also that such condition is tailor-made to benefit to only one manufacturer, i. e. , third respondent herein.

( 8 ) THE petitioner further asserted in the affidavi


























































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