Telangana High Court
M/S. D. R. Mediequip vs The State Of Telangana on 13 February, 2025
Author: Nagesh Bheemapaka
Bench: Nagesh Bheemapaka
HON'BLE SRI JUSTICE NAGESH BHEEMAPAKA
WRIT PETITION No. 27787 OF 2024
O R D E R:
The 3rd respondent issued tender notification dated 06.09.2024 and proceeding with the tender process, despite being aware of the factum of existence of petitioner's contract which is subsisting till 18.08.2025 for supply of medical implants. The same is questioned in this Writ Petition.
2. Petitioner firm is engaged in the business of supplying, distributing wholesale drugs including implants for past several years. Therefore, he participated in the tender notification issued by the respondents dated 28.07.2022 for supply of implants to Government General Hospital, Nalgonda (for short 'GGH') and emerged successful. As the tender was issued only for two years, petitioner made representation to the 3rd respondent to extend the same to three years and the latter by proceedings dated 18.08.2022 issued permission to petitioner firm for supply of implant items for three years effective from 19.08.2022.
It is stated, a contract agreement was drawn in the form of MoU between petitioner firm and the 3rd respondent on 2 19.08.2022, clause (4) specifically states that the effect of contract is for three years and it may be extended, thereafter, on mutual consent. In view of the same, the contract is up to 19.08.2025.
While so, the 2nd respondent issued letter / proceedings on 02.08.2024 stating that permission accorded to petitioner is only for two years and the same is expiring on 18.08.2024, therefore, petitioner submitted representation on 07.07.2024 duly explaining the facts and circumstances, that contract would expire on 18.08.2025, however, without considering the representation nor considering the existing contract and permission order given by the 3rd respondent, he had illegally, arbitrarily issued a fresh tender notification, impugned in this Writ Petition and initiated the tender process. Even as on today, petitioner's contract, it is stated, is in subsistence and no termination proceedings were issued by the 3rd respondent.
3. Learned counsel for petitioner Sri R. Anurag submits that the action of the 3rd respondent in issuing fresh tender notification without either terminating the contract entered into with the 3rd respondent or passing a reasoned order 3 considering representation of petitioner for the notice dated 02.08.2024 is nothing but violative of principles of natural justice. According to him, the terms of contract prevail over any discrepancy or any inconsistency in other contract agreement, as such, the 3rd respondent has no authority to issue a new tender for the contract which is subsisting till date.
4. While entertaining the Writ Petition, this Court by order dated 03.10.2024, directed official respondents to go ahead with the tender notification dated 06.09.2024, however, without finalising the same.
5. The Superintendent, GGH, Nalgonda filed counter stating that pursuant to the tender notification dated 17.02.2022 for supply of drugs, surgical, ortho implants, lab reagents and surgical consumables to GGH, Nalgonda for a period of two years, only single tender was received, therefore, AJC (Rev) cancelled the tender and called for fresh tender and paper notification was published in daily newspaper dated 27.07.2022. Accordingly, three bidders participated in the tender namely 1) M/s Dr. Mediequip; 2) M/s Health Care Solutions and 3) M/s Ravi Agencies and contract was awarded to L1 least quoted firm i.e. petitioner and the same was 4 approved by the Joint Collector, Nalgonda for two years from 19.08.2022 to 18.08.2024 who is appointed as Chairman, Hospital Development Society, Nalgonda vide G.O.Ms.No. 1, dated 03.01.2020, but the order to supply implants was issued by the then Superintendent, GGH, Nalgonda for three years effective from 19.08.2022 which is contrast to the note approval.
It is stated that the alleged MoU dated 19.08.2022 is not part of the record and it is not in accordance with the note approval, so also the representation dated 10.08.2022 referred to by petitioner as to whether proposals made upon it to the Joint Collector for modification of contract tenure to three years also is not borne out of this office record. It is stated that the office vide proceedings dated 02.08.2024 informed petitioner that two years contract for the supply of implant items to GGH, Nalgonda is expiring on 18.08.2024. For the representation dated 07.08.2024 submitted by petitioner, the 3rd respondent vide memo dated 09.08.2024 informed that it is not feasible to extend the ortho implant contract for any further period and petitioner submitted another representation dated 8.08.2024 to refund the EMD of Rs.2,00,000/- which was deposited by them 5 during the tender in 2022 since contract period was not extended by this office.
It is also stated that as the contract expiry date was approaching, a note file was circulated to the District Collector, Nalgonda duly requesting to issue necessary orders regarding fresh tenders for which, District Collector agreed to the procurement of implants through Hospital Tender Committee under Chairmanship of DPC and till the completion of tenders, ortho implants may be procured through DCHS, Nalgonda; accordingly, orders were issued to DCHS, Nalgonda for procurement of Ortho implants on receipt of purchase orders from Superintendent, GGH, Nalgonda and simultaneously, fresh tenders were called for towards supply of Ortho implants for a period of two years. Pursuant to the tender, petitioner herein brought the tender application but did not submit any sort of technical bid or financial bid forms or participate in tenders. However, the following three bidders have participated in the process 1) M/s Ravi Agencies, Nalgonda, 2) M/s Siri Surgicals, Nalgonda and M/s Adva Medicare, Secunderabad. On opening the technical bid of the above bidders on 27.09.2024 and financial bid on 01.10.2024, M/s Siri Surgicals, Nalgonda have 6 qualified for financial bid and the District Purchase Committee has come to a resolution to award the tender to M/s Siri Surgicals Nalgonda for two years with effect from 16.10.2024 to 15.10.2026 @ 5% discount on all the 384 items and provide Arthroscopy instrument set to GGH, Nalgodna.
6. Heard learned Government Pleader for Medical, Health and Family Welfare on behalf of the 1st respondent and learned Government Pleader for Revenue on behalf of the 2nd respondent.
7. In view of the categorical averments in the counter stating that MoU dated 19.08.2022 said to have been entered between petitioner and the then Superintendent, GGH, Nalgonda is not part of the office file and it is also not in accordance with the note approval by the then Joint Collector, dated 17.08.2022 and further, the representation dated 10.08.2022 referred to by petitioner and whether proposals made upon it to the Joint Collector for modification of contract tenure to three years also not borne out of the office record and no such approval was taken for such modification, and further pursuant to the notification issued, the 4th respondent was awarded ten tender with effect from 16.10.2024 to 15.10.2026, 7 and also in view of the well settled law laid down by the Hon'ble Supreme Court to the effect that there should be no judicial review in commercial matters unless a case of arbitrariness, mala fide, bias or irrationality is made out and that the Court should refrain from imposing its decision over the employer with respect to whether or not to accept the bid of a tenderer, this Court is not inclined to accept the request of petitioner. The Writ Petition is therefore, liable to be dismissed.
8. The Writ Petition is accordingly, dismissed. No costs.
9. Consequently, the miscellaneous Applications, if any shall stand closed.
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NAGESH BHEEMAPAKA, J 13th February 2025 ksld