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2. The petitioner, claiming to be the registered supplier of the J&K Health & Medical Education Department, supplying allopathic drugs and I.V. Fluids to the respondent-department for the last two decades asserted that the petitioner-company, was issued supply orders, pursuant to which various allopathic drugs and I.V. fluids including Injection Ampicilline 500/250mg, Tablet Paracetamol 500mg and other drugs were supplied, vide rate contract of the year 2004-05, pursuant to following supply orders:-

3. The petitioner claimed that the petitioner-company had supplied the drugs and I.V fluids as mentioned in the above quoted supply orders to the respondents, under the terms and conditions of the contract within the stipulated period, however, the petitioner-company, due to some unavoidable circumstances, could not supply one crore fifty lac tablets of Paracetamol 500mg to the respondent-department; that the respondent- department released the bills of the supplied items of drugs and fluids in favour of the petitioner-company and also continued to issue supply orders in favour of the petitioner-company for years together.

"That this Office placed Supply Order issued under No. DHSK/PS/SO/drugs/2004-05/1445-59 dated 21-02-2005 and No. DHSK/PUR/SO/Drugs/2006- Page |4 07/517-21 dated 08-09-2006 with your firm on approved rates of Central Purchase Committee, Health & Medical Education Department, J&K in your favor for the year 2004-05 vice rate ontract No. JMC/PS/Drugs/2855-64 dated 02-03-2005 for various Drugs and Medicines for the year 2004-05 and 2006-07 including one crore and fifty lakh Tablets of Paracetamol 500 mg each respectively; Your firm failed to execute the Supply of the drug against both the supply Orders within stipulated period and this Office make alternate arrangement vide Supply Order No. Acctt/DHSK/2004-05-565- 68 dated 27-05-2005 and No. DHSK/PS/SO/Drugs/2006-07/98690 dated 27-11-
2006 favoring M/s Bengal Chemicals and Pharmaceuticals Ltd. (A Government of India Enterprise) New Delhi for which an amount of Rs. 
         11,77,220/-     and    Rs.    8,50,000/-    (Total   Rs.

         20,27,200/-) have been paid extra by the

         Department".
5. The petitioner has alleged that the respondent-department had refused to release unpaid amount of Rs.12,45,226/- on account of pending payment of bill No. 492 dated 01.03.2007 and bill No. 511 dated 14.03.2007 in favour of the petitioner-company on flimsy grounds; that as is evident from para-2 of the communication made by respondent No.3, two supply orders dated 27.05.2005 and 27.11.2006 had been made in favour of Page |5 M/S Bengal Chemicals and Pharmaceuticals Ltd. New Delhi, for supply of Paracetamol 500mg, however, no prior notice was issued to the petitioner-company in this behalf nor any fresh tenders were invited by the respondent-department in terms of condition 17 of the terms and conditions of Group-I (Allopathic drugs and IV fluids) issued by Central Purchase Committee, Health & Medical Education Department J&K Srinagar; that the respondent-department was duty bound to issue prior notice to the petitioner-company before arranging supplies either through re-tender or otherwise and had the respondents given prior notice to the petitioner-company before issuing supply orders in favour of another company i.e., M/S Bengal Chemicals and Pharmaceuticals Ltd., the petitioner company would have negotiated with respondent-department and the validity period and delivery period as provided under condition No.17 could have been extended by the respondent-department and if still the petitioner-company would fail then the punitive action, as envisaged under condition No.17 could have been taken against the petitioner-company but neither notice was given to the petitioner-company nor any fresh tenders were invited and everything was done by the respondent-department at the back of the petitioner-company without affording any chance of being heard as such, petitioner-company is not responsible for any loss incurred by the respondent-department in purchasing the Paracetamol tablets from other company on higher rates.