Firm debarment from public contracts requires prior actionable product debarment, ensuring compliance with procedural norms.

JUDGMENT & ORDER :

MANISH CHOUDHURY, J.

In this writ petition under Article 226 of the Constitution of India, assail is made to a Firm Debarment Notice bearing e-File no. : 509791/20138 dated 15.11.2025 [Annexure-XXIII] issued under the hand of the Managing Director, Assam Medical Services Corporation Limited [AMSCL], that is, the respondent no. 3. The Firm Debarment Notice has been issued on the ground of non-supply of thirteen nos. of drugs and seventeen nos. of Purchase Orders [POs] where supplies were found below 90%. By the Firm Debarment Notice, the petitioner has been blacklisted and debarred from participating in any tender for a period of 3 [three] years from the date of issuance of the impugned Final Debarment Notice in terms of Clause no. 5, Sub-Clause – H, Pt. no. [ii] & Pt. no. [iii] and Sub-Clause – M for default in supply of thirteen nos. of essential drugs against seventeen nos. of Purchase Orders [POs] as per details mentioned in Annexure-A to the Firm Debarment Notice.

2. In order to understand the nature of challenge, the events leading to the issuance of the Firm Debarment Notice would require an exposition : By a Notice Inviting Tender [Framework Agreement] dated 09.02.2023, the AMSCL invited online tenders for empanelment of manufacturers for supply of essential drugs to various health facilities under the Department of Health & Family Welfare, Government of Assam by entering into a Framework Agreement valid for three years.

3. As per the Notice Inviting Tender [NIT] and the Bidding Document, the primary objective of the AMSCL is to act as the central procurement agency for procurement of essential drugs, surgical, consumables & equipment, etc. on behalf of all the directorates / body / agency / mission under the Health & Family Welfare Department and the Medical Education & Research Department of the Government of Assam. By the NIT, the AMSCL had intended to establish a Framework Agreement with manufacturers and the process of empanelment would be valid for a period of three years with option to further extend the period for another one year.

4. The petitioner is a company registered under the Companies Act, 1956 with its registered office at Yamuna Nagar, Haryana and its factory at Mauza Ogli, District – Sirmour, Himachal Pradesh. The petitioner company [hereinafter also referred to as ‘the petitioner’, at places, for easy reference] is a pharmaceutical manufacturer and supplier. It has claimed work experience in the field of supplying medicines and essential drugs to different Government and non-Government agencies across the country.

5. Finding itself eligible to submit bid as per the terms and conditions of the NIT dated 09.02.2023, the petitioner submitted its bid. Upon bid evaluation, the bid of the petitioner was adjudged as a valid bid. On 28.07.2023, the office of the respondent no. 3 issued a Letter of Intent [LoI] to 185 nos. of bidders informing them that they had been empaneled, after the process of e-tendering, for entering into a Framework Agreement each with the AMSCL for three years for supply of essential drugs as per specification given in details in the annexures attached to the LoI. In the list of 185 empaneled vendors, the name of the petitioner company figured at Serial no. 185.

6. In the NIT, the terms and conditions for the Framework Agreement were set forth. The relevant terms and conditions were also mentioned in the LoI. It was stated that