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2024 Supreme(JK) 433

HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR Reserved On: 20 th of August, 2024.
Pronounced On: 23 rd of August, 2024.
M/S G. Ahmad Pharmaceuticals, Rajbagh, Srinagar, through its proprietor, Vikar Ahmad Bhat, Age: 49 Years S/O Ghulam Ahmad Bhat R/O Rajbagh, Srinagar.
Petitioner(s)
Through: -
Ms Sabeena Naveed, Advocate.
V/s
1. State of Jammu & Kashmir, Through Commissioner/ Secretary, Health & Medical Education Department, Civil Secretariat, Jammu/ Srinagar.
2. Principal, Government Medical College, Srinagar.
3. Principal, Government Dental College, Srinagar.
4. Purchase Officer, Government Dental College, Srinagar.
5. Chairman, Rate Contract Committee, Government Medical College, Srinagar.
… Respondent Through: -
Mr Bikramadeep Singh, Dy. AG.
CORAM:
HON’BLE MR JUSTICE M. A. CHOWDHARY, JUDGE

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.

Headnote:(A) Supply Order - Terms and Conditions - The Respondent placed a supply order for Compressors for Ventilators with specific terms including bank guarantees and delivery timelines. The Petitioner claims non-payment despite fulfilling conditions. (Paras 1-4)

(B) Contractual Obligations - The Respondents denied receipt of supplies and fulfillment of contractual conditions by the Petitioner. The court emphasized the necessity of proof for compliance with supply order terms. (Paras 12-14)

(C) Legal Remedies - The court dismissed the petition but allowed the Petitioner to seek remedies in civil court for disputed facts regarding supply and payment. (Paras 14-15)

Facts of the case:
The Petitioner supplied Ventilators as per a supply order but claims payment was withheld despite fulfilling conditions. The Respondents alleged non-compliance and lack of proof of supply.

Findings of Court:
The court found the Petitioner failed to provide evidence of supply and compliance with the order's conditions.

Issues: The main issues were whether the Petitioner fulfilled the supply order conditions and the legitimacy of the payment withholding.

Ratio Decidendi: The court ruled that without proof of compliance with the supply order, the Petitioner's claims could not be upheld, and disputed facts should be resolved in civil court.

Result: Petition dismissed.

JUDGMENT :

01. The Respondent No.4-Purchase Officer, Government Dental College & Hospital, Srinagar, vide No. Md.Supdt./GDC&H/1046-54 dated 26th of September, 2012, placed a supply Order for purchase of two Compressors for Ventilators from M/S Air Liquide Medical Systems, 5 Rue Georges Bess CE-80, 92182 Antony Cedex, France, with certain description of their components and with an intended use of supplying medical air to the Ventilators in ICU machine, as per the following terms and conditions:

1. The shipment should be effected only after receiving the clear written confirmation order from the department;

2. You shall have to deposit the bank guarantee of 10% of the equipment value in favour of the consignment valid for 36 months;

3. The delivery period of the equipment to be completed within 6-8 weeks from the date of the receipt of the order by you;

4. The equipment shall have the comprehensive warranty up to the time of 36 months from the date of installation;

5. 100% payments will be payable in the Indian rupees only, to your local Indian agent;

6. The machine shall be installed through your local agent;

7. CMC will be 14% first year with the escalation of 10% every year;

8. While making the payments, conversion of Euro should be calculated @ 67, if the prevailing rate is lesser, same should be apply at that time;

9. The package should be addressed to the Medical Stores Officer, Govt. Dental College, Srinagar with clear indication of Supply Order No.; and

10. The firm will certify that the rates charged are the lowest and are being charged to all Govt./ Semi Govt./ Pvt. Institutions.

02. The Petitioner, being the authorized supplier of M/S Air Liquide Medical Systems, 5 Rue Georges Bess CE-80, 92182 Antony Cedex, France, supplied the aforesaid Ventilators to the Government Dental College & Hospital, Srinagar and, as agreed in the supply Order, the rates provided were as prescribed for supply of the same to the AIIMS, New Delhi. The Petitioner claims that the rates earlier prescribed for supplies to AIIMS, New Delhi as 12,862.50 Euros per Unit were slashed to 11,397.50 Euros and the Medical Superintendent, SMHS Hospital, Srinagar was informed of this and requested to calculate the due amount on the slashed rates; that all the Ventilators were tested at the Government Medical College, Srinagar, where the testing facility of the Ventilators was available and the two Ventilators were handed over to the Head of Department (HoD) Faciomaxillary Surgery, Government Dental College & Hospital, Srinagar, for which a proper communication was issued by the Professor and Head of Department (HoD), Anesthesia, Government Medical College, Srinagar; that the Ventilators were to be used at Government Dental College & Hospital, but the payment which amounted to Rs.23.00 lacs for two Ventilators and their allied items was not released in favour of the Petitioner, despite numerous representations made thereof by the Petitioner.

03. The Petitioner alleges that in a novel communication issued by the Medical Superintendent, Government Dental College & Hospital, Srinagar, unknown and strange facts to the whole process were highlighted with regard to release of payment in favour of the Petitioner vide communication dated 17th of July, 2014; that the Respondent No.3- Principal, Government Dental College & Hospital, Srinagar, vide communication dated 21st of February, 2014, impressed upon the Petitioner to receive the payment from the Government Dental College & Hospital, Srinagar on the analogy of the said communication, to which the Petitioner clarified, however, despite moving from pillar to post on part of the Petitioner for release of his legitimate payment for the supply of Ventilators to Government Dental College & Hospital, Srinagar, no fruitful results were borne out.

04. Accordingly, through the medium of the present Petition, the Petitioner has prayed for the grant of following relief(s) in its favour:

“i. To issue a Writ in the nature of certiorari quas

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