The court ruled that product debarment must precede firm debarment within procurement frameworks, thereby invalidating the debarment notice due to failure to follow proper procedures in the contract termination.

JUDGMENT :

DEVASHIS BARUAH, J.

1.Heard Mr. M. Goswami, the learned Senior counsel assisted by Mr. R. Singha, the learned counsel appearing on behalf of the Petitioners and Mr. D. P. Borah, learned Standing counsel for the Health Department appearing on behalf of all the Respondents.

2. The present writ petition has been filed by the Petitioners challenging the Debarment Notice bearing No.588121/20193 dated 17.11.2025 whereby the Respondent Authorities have blacklisted and debarred the Petitioner No.1 from participating in any tender for three years from the date of issuance of the said letter in terms with Clause 5, Sub-Clause H, Pt. No.(ii), Pt. No.(iii) and Sub-Clause-M for default in supply of four numbers of essential drugs against four numbers purchase orders the details of which have been placed in Annexure-A to the said order dated 17.11.2025 (hereinafter referred to as the impugned order).

3. The question which arises in the instant case is as to whether the impugned order dated 17.11.2025 calls for any interference in exercise of the powers under Article 226 of the Constitution.

4. In order to adjudicate the said aspect, this Court finds it pertinent to take note of material facts which led to the filing of the present writ petition. 5. The Respondent No.4 had issued a Notice Inviting Tender (Framework Agreement) dated 09.02.2023 (hereinafter referred to as ‘the Bidding document’) inviting online bids for empanelment of manufacturers for supply of essential drugs to various health facilities under the Department of Health and Family Welfare, Government of Assam by entering into Framework Agreement valid for 3 years.

6. For the purpose of adjudication of the instant dispute, this Court finds it relevant to take note of some of the Clauses of the said Bidding document. Clause 4 of the Bidding document is with the heading “Evaluation, Selection and Acceptance of Tender”. Sub-Clause B of Clause 4 of the Bidding document refers to “Bid Evaluation”. Sub-Clause B of Clause 4 of the Bidding document being relevant is reproduced herein under:

“4(B). Bid Evaluation.

i. Tenders will be evaluated with reference to technical and commercial parameters to determine the technically empanelled bidders for all items. A contract will be signed with the empanelled bidders which will be valid for 3 years with option to further extend the period for another 1 year.

ii. After the conclusion of empanelment process, a separate process will be followed to discover the Lowest Price against a particular item amongst the empanelled bidders. The process of price discovery will be initiated against every proposed procurement.

iii. Purchase Orders will be issued in the ration 60 : 25 : 15 to the L1 : L2 : L3 subject to L2 & L3 matches the L1 rate. If L2 or L3 does not match the L1 rate, then the next lowest bidder will be offered to match the L1 rate. However, if the value of purchase is less than Rs.5.00 Lakh than the entire quantity will be awarded to the L1 bidder.

iv. If the rate quoted by the empanelled manufacturers is more than the prevailing market rate then AMSCL shall procure the item(s) from any other alternate sources.

v. The supplier(s) shall be invited to supply the item(s) of required quantity, quality and specification at the agreed rate within prescribed delivery period. The shortlisted firm(s) shall also commit contractually to furnish performance security @ 5% of the order value within 15 days of receipt of the Purchase Order. If Performance Security is not submitted within the stipulated time period, then penal pro