SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Pat) 708

IN THE HIGH COURT OF JUDICATURE AT PATNA
A. ABHISHEK REDDY, J.
M/s Garg Drugs a Proprietorship firm, through its Sole Proprietor Santosh Kumar Agrawal, son of Late Mahavir Prasad Jee Agarwal - Petitioner
Versus
The State of Bihar, through the Principal Secretary, Department of Health, Government of Bihar and Ors. - Respondents
Civil Writ Jurisdiction Case No.2996 of 2024
Decided On : 07-10-2024

Advocates Appeared:
For the Petitioner: Mr. Avinash Shekhar.

A supplier is entitled to payment for goods supplied under a valid work order, regardless of procedural lapses by the issuing authority.

Headnote:(A) Writ Jurisdiction - Quashing of order - The petitioner sought to quash the order rejecting payment for supplied medicines and equipment, claiming arbitrary denial without consideration of facts. The court found that the petitioner supplied items as per work orders and was entitled to payment. (Paras 3, 10, 12)

(B) Competence of Authority - The court ruled that any lapses by the Civil Surgeon in issuing orders do not absolve the respondents from making payments for supplied goods. The petitioner cannot be penalized for the authority's actions. (Paras 9, 11)

Facts of the case:
The petitioner supplied medicines and medical equipment worth Rs. 58,56,670/- as per work orders but faced arbitrary rejection of payment by the authorities. The petitioner participated in a tender process and was the lowest bidder. (Paras 3-6)

Findings of Court:
The court directed the respondents to pay the amounts due to the petitioner within eight weeks, emphasizing that the supplied items were utilized and the denial of payment lacked legal basis. (Paras 12-13)

Issues: The main issues included the legality of the payment denial and the competence of the authority issuing the work orders. (Paras 9, 10)

Ratio Decidendi: The court held that the petitioner is entitled to payment for supplied goods as the orders were placed by a competent authority, and any irregularities by the authority do not affect the petitioner's rights. (Paras 11, 12)

Result: Writ petition allowed.

JUDGMENT :

(A. Abhishek Reddy, J.)

Heard the learned counsel for the parties.

The present writ petition has been filed for the following reliefs:-

    “i) To issue an appropriate writ, order or direction in the nature of certiorari for quashing the order contained in memo no. 1357 dated 12.11.2022 (Annexure 20) issued by the Respondent Civil Surgeon - Cum Chief Medical Officer, Arwal whereby petitioner claim, for payment of Rs. 58,56,670 /- (Rs. 45,60,864/- + Rs. 12,95,806/-) in lieu of medicines and medical equipment supplied by the petitioner, contained in representation dated 26.11.2021 in light of order dated 15.11.2021 passed in CWJC No. 7013 of 2020 has been rejected in a completely arbitrary manner without considering the facts and circumstances of the case.

    ii) Consequent to grant of relief no. (i), to issue an appropriate writ order or direction in the nature of mandamus commanding the Respondents to make payment of Rs. 58,56,670/- in lieu of medicines and medical equipment supplied by the petitioner, along with interest at the rate of 8% per annum.

    iii) This Hon'ble Court may adjudicate and hold that the action of the Respondents in not making payment for the medicines and medical equipment supplied by the petitioner is highly arbitrary and unreasonable and amounts to unjust enrichment on the part of the Respondents.

    iv) This Hon'ble Court may adjudicate and hold that the petitioner cannot be penalised for the acts/omissions of the then Civil Surgeon Officer, Arwal. Cum Chief Medical.

    v) To grant any other relief or reliefs which the Petitioner may be found entitled to in the facts and circumstances of the case.”

3. It is the case of the petitioner, that the petitioner has supplied medicines and medical equipment as per the work order received and at the agreed rates. Thereafter, the petitioner has submitted the bills for a total amount of Rs. 58,56,670/-. However, the authorities for reasons best known to them are not paying the same.

4. Learned counsel for the petitioner has stated that pursuant to the NIT issued by the authority, the petitioner had participated in the tender process and being the lowest tenderer, he was awarded the contract for supply of medicines and also medical equipment.

5. That the petitioner had supplied the following items from the year 2018 on wards;

    I. Blood sugar kits

    II. Vicryl No. 1

    III. Levosalbutamol Syrup

    IV. Needle Holder

    V. Forceps Allies.

6. That between the year 2018-19, the petitioner had received work orders from the Civil Surgeon-cum-Chief Medical Officer, Arwal and the invoiced amount for the supplies for the above period is Rs. 12,95,806/-. However, the said amount was not paid to the petitioner. Thereafter, basing on the orders bearing Memo No. 539 & 540 dated 30.03.2019, the petitioner had supplied blood sugar kits and vicryl No. 1 and the total amount due to the petitioner under the above two invoices is approximately Rs. 27,93,500/- & Rs. 12,78,700/- respectively. It is stated that the petitioner has been supplying the above material which were especially marked as “government supply and not for sale”. That after receipt of the medicines and the medical equipment, the petitioner was informed by the Civil Surgeon-Cum Chief Medical Officer, Arwal vide Memo No. 664 dated 04.05.2019, that some of the medicines and medical equipment supplied under supply order dated 30.03.2019 were at the fag of the financial year 2018-19 and as such petitioner was directed to take back the medicines/ medical equipment. Learned counsel has stated that though the letter was dated 04.05.2019, it was served on the petitioner only on 05.11.2019 however, the petitioner was orally informed about the said letter in the month of August, 2019. That the petitioner immediately thereafter, had informed the authority concerned that it would not be possible to take back the medicines and medical equipment as they were especially marked as “government supply and not for sale” therefore they could not be used anywhere else

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top