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DELHI HIGH COURT
SATISH CHANDRA SHARMA, SUBRAMONIUM PRASAD
Federation of Ayush Drugs Manufacturers – Appellant
Versus
Union of India – Respondent
JUDGMENT
Subramonium Prasad, J. The instant Writ Petition under Article 226 of the Constitution of India has been filed with the following prayers:
"(a) Direct the Government of Delhi to frame a policy under Section 11 of Micro, Small and Medium Enterprises Development Act, 2006 granting fiscal incentives to micro and small enterprises in tenders for public procurement of Ayurvedic, Siddha and Unani (ASU) Drugs; And
(b) Until the framing of such policy, direct the Government of Delhi to strictly follow the Policy dated 23.03.2012 framed by the Ministry of Micro, Small and Medium Enterprises and other directions dated 10.03.2016, 25.07.2016 and 06.12.2017 issued pursuant thereto in its public procurement tenders for supply of ASU Drugs; and
(c) Direct the Government of India to direct all State Governments that have not framed policies in terms of Section 11 of MSMED Act, 2006 do so expeditiously; and
(d) Declare that in the absence of a specific policy authorizing the same, it is illegal in a public procurement tender for supply of ASU drugs to impose a purchase preference in favour of Government bodies, enterprises and PSUs; and
(e) Restrain the Ministry of Ayush, Government of In
Courts lack the authority to direct government policy-making in procurement; however, they can mandate consideration of representations from affected parties to ensure lawful treatment.
Government contracts must be awarded transparently through competitive tendering processes, ensuring compliance with principles of fairness and non-arbitrariness under Article 14.
Welfare State plays a crucial role in aiding realisation of the socio-economic rights which are recognised by the Constitution – Constitution recognises pursuit of well-being of citizens as a desirab....
The procurement policy mandates that specified items must be exclusively acquired from Micro and Small Enterprises, rejecting attempts to disguise procurement as a works contract.
The court upheld that 100% reservation for MSEs in public procurement is valid under the MSE Policy, rejecting claims of arbitrariness towards tender selection processes.
The court upheld the denial of relaxations in tender conditions for Start-up procurement in healthcare based on public safety, affirming that such decisions are not unconstitutional.
The court emphasized that the safety of patients is of paramount importance and upheld the discretion of the tender authority in framing tender conditions.
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