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IN THE HIGH COURT OF JUDICATURE AT PATNA
Rajeev Ranjan Prasad, Ashok Kumar Pandey, JJ.
POCT Services – Petitioner
Versus
The State of Bihar Through its Additional Chief Secretary – Respondents
Civil Writ Jurisdiction Case No.1377 of 2025
Decided On : 08-08-2025
Government Contract – Petitioner seeking quashing of the Agreement dated 19.11.2024, executed between the State Health Society Bihar (SHSB) and the consortium of M/s Hindustan Wellness Pvt. Ltd. (Lead Partner) and M/s Khanna Pathcare Pvt. Ltd. (partner 2) (Respondent Nos. 8 & 9) as the selecting agency for providing pathology services at designated government healthcare facilities under the Hub and Spoke Model in Bihar – Process adopted by the authorities of the society were intended to favour the consortium of Respondent No. 8 and Resp. No. 9 – It is so because on the one hand a mandatory eligibility criteria in terms of the clause 2.4 read with clause 9.6.10 of the Tender Document has been given go-bye in order to award the work to the consortium of Respondent Nos. 8 and 9 but the same time, Respondent No. 10 who has given the highest discount that too by more than 4 percentage over and above the discount rate offered by the consortium of Respondent Nos. 8 and 9 and that of the petitioner in the name of being a competitive bid – It is found that if the eligibility criteria as contained in clause 2.4 read with 9.6.10 is given a go-bye, the quality of work which are to be undertaken by the successful bidder and the public money which would be spent for the purpose both would suffer – In the result, it is held that the Respondent Nos. 8 and 9 have failed to fulfill the eligibility criteria as contained in clause 2.4 read with clause 9.6.10, Section V of the Tender Document – The 'LoI' issued in favour of Respondent Nos. 8 and 9 and consequent agreement dated 19.11.2024 are result of a favour shown to them at both the stages keeping aside the public interest, hence, those are liable to be quashed and cancelled and accordingly, the 'LoI' and consequent agreement executed in favour of consortium of Respondent Nos. 8 and 9 quashed – The Respondent Nos. 4 to 7 i.e. the society directed to convene a meeting of the Technical Bid Committee and the PAC within one month – They will go for scrutiny of the tenders, take a division with regard to award of tender afresh at the earliest keeping in view the discussions and observations made in this judgment – Writ application allowed. (Paras 71 to 74)
| Table of Content |
|---|
| 1. petitioner's relief request for quashing tender. (Para 1 , 2 , 3) |
| 2. procedural irregularities in tender bidding process. (Para 4 , 5 , 6 , 7) |
| 3. petitioner claims breach of eligibility criteria. (Para 8 , 10 , 11 , 12) |
| 4. defendants argue procedural fairness and transparency. (Para 15 , 20 , 21) |
| 5. court observes procedural improprieties and bias. (Para 33 , 34 , 35 , 36 , 37) |
| 6. court's assessment of eligibility criteria compliance. (Para 46 , 47 , 52 , 71) |
| 7. court orders to reprocess tender awarding. (Para 72 , 73 , 74) |
JUDGMENT :
RAJEEV RANJAN PRASAD, J.
| Sl. No. | Topic |
| 1. | Cause Title |
| 2. | Case of the Petitioner |
| 3. | Submissions on behalf of the Petitioner |
| 4. | Submissions on behalf of the Respondent Nos. 4 to 7 (State Health Society) |
| 5. | Submissions on behalf of the Respondent Nos. 8 and 9 |
| 6. | Submission of Respondent No. 10 |
| 7. | Consideration:- |
| Plea of Constructive Res Judicata | |
| Essential Conditions-Mandatory Documents as per N.I.T. | |
| Opinion of this Court |
In the present writ petition, the petitioner is seeking the following reliefs:-
“(i) For quashing and setting aside the Agreement dated 19.11.2024 (Annexure P/14), executed between the State Health Society Bihar (SHSB) and the Consortium of M/s Hindustan Wellness Pvt. Ltd. (Lead Partner) and M/s Dr. Khannas Pathcare Pvt. Ltd. (Partner 2), as the selected agency for providing pathology services at designated government healthcare facilities under the Hub and Spoke model in Bihar. The said Agreement, executed pursuant to the issuance of the Letter of Intent (LOI), as detailed in Schedule I of the Agreement, stems from a selection process riddled with procedural irregularities and non- compliance with the eligibility criteria outlined in Section V, Clause 2.4 of the tender document. The LOI, which forms the basis of this Agreement, was issued in contravention of the mandatory requirement for bidders to demonstrate conducting a minimum of 20 lakh pathology tests per year during the last three financial years (FY 2021-22, FY 2022-23, and FY 2023-24) through client-issued certificates, supported by Work Orders, MoUs, Contracts, or Agreements.
(ii) For quashing and setting aside the selection of the Consortium of Respondent No. 8 and Respondent No. 9, comprising M/s Hindustan Wellness Pvt. Ltd. (Lead Partner) and M/s Dr. Khannas Pathcare Pvt. Ltd. (Partner 2), as the L1 bidder for providing pathology services at designated government healthcare facilities under the Hub and Spoke Model in Bihar, as finalized in the proceedings of the Project Appraisal Committee (PAC) meeting held on 23.10.2024, and formalized under the signatures of the PAC members on 29.10.2024, as contained in Annexure-P/13 related to Notice Inviting Tender (NIT) Reference No. 09/SHSB/Pathology Services/2024-25, on the ground that the Consortium of Respondent No. 8 and Respondent No. 9 does not fulfil the eligibility criteria mandated under Section V, Clause 2.4 of the tender document, which requires conducting a minimum of 20 lakh pathology tests per year during the last three financial years (FY 2021-22, FY 2022-23, FY 2023-24) and the submission of a self-attested copy of the Experience Certificate issued by the client (Government/Private), along with the Work Order/MoU/Contract Agreement, evidencing the count of pathology tests conducted per year during the last 3 years (FY 2021-22, FY 2022-23 and FY 2023-24), thus rendering their selection arbitrary, unlawful, and contrary to the terms of the tender.
(iii) For quashing and setting aside the Minutes of the Meeting of the Technical Committee, dated 21.10.2024, related to Notice Inviting Tender (NIT) Reference No. 09/SHSB/Pathology Services/2024-25, as detailed in Annexure-P/8, for the selection of an agency to provide pathology services at designated government healthcare facilities under the Hub and Spoke model in Bihar. This meeting, held on 21.10.2024 at 5:30 p.m. in the Conference Hall of the State Health Society Bihar, Patna, was convened for the evaluation of technical bids
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