1. The State Health Society, Bihar is a society formed by the Government of Bihar in the Department of Health and Family Welfare. The society has been formed to perform or get performed all State functions by outsourcing services to private entrepreneurs. It is nothing but an extension of the State itself.

2. The State Health Society issued notice inviting tender from Companies and Firms for rate contracting of drugs. Under this tender it is not that the Firms are selected for any particular order of any drug in any quantity but rates of various drugs are settled for a particular period of supply as may be required by the State. The notice inviting tender is Annexure-A to the counter affidavit. One of the conditions of minimum eligibility criteria is a market standing of minimum three years issued by the Licensing Authority of the concerned State. The tenders have to be submitted in two separate envelopes in respect of two separate stages. First is the technical bid where as is usual eligibility to participate is decided. Once this eligibility bid is opened and the tenderer is deemed to be eligible then comes the financial bid which is opened. At the technical bid stage th