IN THE HIGH COURT OF JUDICATURE AT HYDERABAD
VILAS V. AFZULPURKAR, J.
M/s. Cyano Pharma (P) Limited & Another - Petitioners
Versus
The State of Telangana, Rep. by its Principal Secretary, Health, Medical and Family Welfare Department, Secretariat, Hyderabad & Another - Respondents
Writ Petition Nos. 17912 & 25140 of 2015
Decided on : 31-08-2015
Constitution of India, Article 226 – Tender – Terms of Tender – Essential conditions - Petitions are directed against the action of the second respondent in not considering the tenders of the respective petitioners and their respective bids submitted in response to the tender notice aforesaid tender was floated inviting open competitive bids for procurement of general medicines on rate contract for the on behalf of the first respondent petitioners were found not qualified by the second respondent for different reasons. However question involved including the interpretation of the terms of the tender, being same, these writ petitions were heard together petitioner company is stated to have been established and is stated to be a leading manufacturer of generic, patent and allopathic formulations and deals with all kinds of drugs, medicines, mixtures, tonics, tablets, pills, capsules, injections, ointments etc. including export thereof to various countries. It is also stated that the petitioner is an ISO certified company by International Certification Services and is also registered with the Ministry of Defence and has to its credits several certificates of appreciation from several countries in the world –Held, decisions relied upon by the learned senior counsel for the petitioner clearly hold that non-essential or collateral conditions of tender cannot be treated as on par with essential conditions. In the present case said ratio would apply particularly power available with the second respondent to ignore the minor deviation, minor non-conformity or irregularity, which does not constitute material deviation and such waiver would not affect the relative ranking of any bidder, as provided under clause 2(3) of Section H of the tender document, extracted above aforesaid conclusion, in my view, would also advance the public interest, as the second respondent would be in a position to consider the price bids offered by the petitioners in both the writ petitioners along with other successful tenders and would be able to procure the medicines at the best possible price. Since the price bids of the petitioners are not yet opened, the same can always be opened and considered on competitive basis along with the price bids of other qualified bidders without causing any prejudice to the relative ranking of any bidder in terms of clause 2(3) of Section referred to above – Writ petitions are accordingly allowed.
1. The writ petitions are directed against the action of the second respondent in not considering the tenders of the respective petitioners and their respective bids submitted in response to the tender notice No.4/TSMSIDC/Medicines/2015-2016 dated 20.02.2014.
2. The aforesaid tender was floated inviting open competitive bids for procurement of general medicines on rate contract for the years 2015-2016 on behalf of the first respondent. The petitioners were found not qualified by the second respondent for different reasons. However, the question involved including the interpretation of the terms of the tender, being same, these writ petitions were heard together.
WP.No.17912 of 2015:
3. The petitioner company is stated to have been established in 1965 and is stated to be a leading manufacturer of generic, patent, ayurvedic and allopathic formulations and deals with all kinds of drugs, medicines, mixtures, tonics, tablets, pills, capsules, injections, ointments etc. including export thereof to various countries. It is also stated that the petitioner is an ISO certified company by International Certification Services and is also registered with the Ministry of Defence and has to its credits several certificates of appreciation from several countries in the world.
4. In response to the tender notice of the second respondent, bids were invited on electronic platform and bidders were requires to register and submit their bids online. The bidders were also required to scan and upload the documents as per the check list and the attested copies of the uploaded scanned documents were to be submitted offline on or before 25.03.2015. The said date, however, was extended after the amendment to the tender conditions was made and explained to all the bidders in the pre-bid meeting held on 07.03.2015. So far as petitioner is concerned, in the pre-bid meeting, the second respondent, inter alia, added new list of documents to be uploaded online and offline viz. submitting of non-conviction certificate from the concerned Directorate of Drug Control and Administration; relevant clause under Sl.No.7 of pre qualification criteria mentions as follows:
“7. Following are not eligible to participate in the tender:
…
Bidders who are convicted in the last three years (from bid calling date). The bidders must produce non-conviction certificate from the concerned DCA.”
5. Petitioner states that he has submitted the bid together with the required documents online before the stipulated date. However, it was not clear to the petitioner as to whether the non-conviction certificate is required to be submitted online or offline and in view of that, the petitioner submitted the said certificate offline before the stipulated date on 09.04.2015. However, the preliminary technical evaluation committee rejected the petitioner’s bid on the ground that “NCC not submitted online. Thus not considered”. Petitioner states that it has already submitted a representation dated 15.06.2015 but since its bid is not being considered, the present writ petition was filed on 18.06.2015.
WP.No.25140 of 2015:
6. Petitioner firm states that it is a leading partnership firm carrying on business of manufacturing generic and allopathic formulations and is duly promoted for manufacture of specific drugs and medicines including injections and also exports its manufactured medicines. So far as the petitioner herein is concerned, the pre qualification criteria, as per the tender document, is as follows:
“The bidder should have minimum annual turnover of Rs.2.50 Crores for MSMEs located in the Telangana State and Rs.10 Crores for other Bidders during each of Three financial years 2011-2012, 2012-2013 and 2013-2014. Evidence of turnover should be supported by a certificate from a Chartered Accountant.”
7. The date for submission of tender including hard copies was extended by the second respondent up to 09.04.2015 by 3.00 PM. Petitioner submits that it had submitted the bids online together with al
Michigan Rubber (India) Limited v. State of Karnatka ((2012) 8 SCC 216)
G.J. Fernandez v. State of Karnataka (1990) 2 SCC 488
Ramana Dayaram Shetty v. International Airport Authority of India [(1979) 3 SCC 489]
Poddar Steel Corporation v. Ganesh Enigneering Works (1991) 3 SCC 273)
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