Disqualification from a tender process is justified when bidders fail to comply with document verification requirements, constituting fraudulent practices under tender norms.

ORDER :

Surepalli Nanda, J.

1. Heard Mr. Jakkamsetti Ravindra, learned counsel appearing on behalf of the petitioners and Mr.Gadi Praveen Kumar, learned Deputy Solicitor General of India appearing on behalf of the Respondents.

2. Petitioners approached the Court seeking prayer as under :

to issue a Writ of Certiorari to quash the office order, dated 29.11.2019, bearing No. CGHS/Hyd/ADMN/LC/2019/140-142, issued by the 3rd Respondent, the Additional Director, CGHS, Begumpet, Hyderabad, Telangana - 500016, unjustifiably disqualifying the petitioners in the e-Bid submitted for empanelment of ALCs under CGHS, Hyderabad, for the year 2019-2022, as illegal, arbitrary, unconstitutional and contrary to principles of natural justice and violative of article 14 of Constitution of India, consequently direct the 3rd respondent:

(a) To return the EMD paid by the petitioners by way of payment order Nos. 000630, 000631, and 000632 of Rs. 3,59,000/-; Rs. 1,76,000/-; and Rs. 3,06,000/- respectively total amounting to Rs.8,41,000/- (Rupees Eight Lakhs Forty-One Thousand Only) on 17.07.2019, the payment orders were paid in favor of the 3rdRespondent, on 03.01.2020;

(b) To pay interest @ 24% per annum on the total EMD of Rs.8,41,000/- (Rupees Eight Lakhs Forty-One Thousand Only) to the petitioners from the date of payment till the date of realization.

(c) And direct the 3rd respondent to pay to the petitioners a total sum of Rs. 10,00,000/- towards damages and compensation.

3. Case of the Petitioners as per the averments made in the affidavit filed in support of the Writ Petition :-

a) The Petitioner No.1 is a Proprietorship concern represented by its Proprietor, Petitioner No.2 and engaged in the sale and distribution of medicines in Hyderabad and in other States of India. The Respondent No.3 had invited E- Tender Online Bids vide Notice No. F.No.CGHS/Hyd/Admn./ALC/2019-22/1-13, dated 01.07.2019 for empanelment for supply of day to day Allopathic Medicine to Wellness Centres located in Hyderabad, which fall under the jurisdiction of the 3rd Respondent herein. In response to the said Tender Notification the Petitioner Bid for 3 Wellness Centres under Central Government Health Scheme, Hyderabad for the Wellness Centre No.2 Humayunnagar, Wellness Centre No.11 Kakatiyanagar, and Wellness Centre No.10 AG's Colony. The E-bids are invited on behalf of the Health Secretary by the Office of the 3rd Respondent as the Respondent No.1 is the final authority for the approval of the tenders. The E-bid is of two stages one Technical and Commercial Bid, the Petitioner was successful in the E-bid and Commercial Bid and was offered as ALC and submitted EMD for Rs.8,41,000/-. It is further the case of the Petitioner that the Petitioner furnished all the relevant documents and on the perusal of the same only the Selection Committee had qualified the Petitioner for opening of commercial bid. The Petitioner had also addressed a letter dt. 03.09.2019 to the 3rd Respondent welcoming the Inspection Committee to conduct the inspection. While so, to the shock of the Petitioner the Petitioner received communication dt. 12.12.2019 intimating to the Petitioner that with reference to Petitioner bid submission 1689800 it is informed that the Petitioner bid has not been selected for Award of Contract by the duly constituted committee. The Petitioner also received communication dt. 29.11.2019 informing the Petitioner that the Petitioner had been disqualified for the E-bid submitted for Empanelment of ALCs under CGS, Hyderabad, for the year 2019-2022 the clauses/paras of the e-tender document on the recommendations of the tender commit