IN THE HIGH COURT OF JUDICATURE AT PATNA
A. ABHISHEK REDDY, J.
CWJC No.2996 of 2024
(7.10.2024)
M/s Garg Drugs ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Government Contract – Denial of Payment – Petitioner supplied medicines and medical equipment as per the work order received and at the agreed rates – Respondents have themselves submitted that the medicines/ equipment which were supplied by the petitioner were already utilized – The question of denial of the payments due to the petitioner is without any legal basis, once the order has been placed by a competent authority and the petitioner has supplied the same, the authorities are legally bound to make the necessary payments – Writ petition allowed – Respondents are directed to pay the amounts due to the petitioner within a period of eight weeks. (Paras 11 & 12)
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 or sold i
A supplier is entitled to payment for goods supplied under a valid work order, regardless of procedural lapses by the issuing authority.
The court upheld the respondent's right to withhold payments due to the petitioner's failure to fulfill supply obligations, emphasizing that contractual disputes should be resolved through appropriat....
The court ruled that without proof of compliance with the supply order's conditions, the Petitioner's claims for payment could not be upheld, allowing for resolution in civil court.
Judicial review under Article 226 is not appropriate for resolving contractual disputes, which should be addressed in civil courts.
The impugned order violated principles of natural justice and tender conditions, leading to its setting aside by the court.
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