{"id":237857,"date":"2009-09-03T00:00:00","date_gmt":"2009-09-02T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-sangrose-laboratories-pvt-ltd-vs-karnataka-drugs-and-logistics-and-on-3-september-2009"},"modified":"2018-12-03T04:31:03","modified_gmt":"2018-12-02T23:01:03","slug":"ms-sangrose-laboratories-pvt-ltd-vs-karnataka-drugs-and-logistics-and-on-3-september-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-sangrose-laboratories-pvt-ltd-vs-karnataka-drugs-and-logistics-and-on-3-september-2009","title":{"rendered":"M\/S Sangrose Laboratories Pvt Ltd vs Karnataka Drugs And Logistics And on 3 September, 2009"},"content":{"rendered":"
Karnataka High Court<\/div>\n
M\/S Sangrose Laboratories Pvt Ltd vs Karnataka Drugs And Logistics And on 3 September, 2009<\/div>\n
Author: Mohan Shantanagoudar<\/div>\n
IN THE HIGH COURT OF KARNATAKA AT BANGALQRE\n\nDATED THIS THE 3\"\" DAY or-\" SEPTEMBER \n\nBEFORE :\n\nTHE HON'BLE MRJUSTICE MoHx.N\"SHAMoTAr.i@e:ouo\u00abAI\u00a7neo A  \nwan PETITION No.135e1z\"2ooes (eIv\\eTEN)t  A \n\nBetween :\n\nM\/s. Sangrose Laboratories\" _ \n\nPvt., Ltd., Industrial Estate ._ A V\nKollakadavu, Kallirnel P.O,.,.--  _  '\nMavelikara, Kera1a--..-u6905\"i[0 , V'\n\nBy its Sales Of\ufb01\u00e9jer \u00a71>{a.1*i3.Vata1ia}V    \n\nS. Vasanth  b       ..Petitioner\n(By Sri Reuben 2 _ '\n\nAND :\n\n1. Kaxjuataka f)1*a1gS'& Logietics\n\nAnd'.;Warehousir1g Society (Regd.},\n\n.  \" {Gosrer\ufb01inent of Karnataka\n\n' VE'I'1tCI'pv1'1'VS. sJ_,'\"PEO.1\n\n  D11 Siddaiahpufanik Road\n\nW\/Iagadi' \nBangal_o1'e_--ii*6O 079\nRep 1*;y\"'Additiona1 Director\n\n V'  A'i'I1e_.\u00abAp\u00a3)e11ate Authority and\n\n'  Secretary to the Government\nDepartment of Health and\nFamily Welfare, Anand Rao\n\nV'  Cricle. Bangalore--O9.\n\n\n\n3. M\/s. Softsules Pvt. Ltd.,\nPlot No.86\/A, L.B. Shastry\nMarg. Mulunda [W]\nMumbai--4OO 080\nRep by its }Director.\n\n4. The Drugs Control\nAdministration\nState of Keraia\n'I'hiruvananthapuram--35  y -.   \nBy its Drugs Controller.   \u00a2_  ..\u00ab.Re's3:;ond~entS.\n\n(By Sri K. Sachindra Karanth, Aclv., for it _s . 2  \nSri J. Chandrashekariaha <3: Raj eswari l3.ev1 C for  \nSri NB. Viswanath, AGA., for  V   \n\nThis Writ Petition is" filed Ciaifticles 226 & 227 of\n\nthe Constittitiovnofl3ndia,j;prayii1g"t0quash the order dated\n4-10-2008 passed: in .App'ea1. N'o.H\u00a7*?W.99.HPC.2008 by the\nrespondent 'Noi;'2 vifde Ann-eXure':A' and consequently allow\nthe said' appeal'--'i3y\u00bb._Vqi1ashii<ig the proceedings of the tender\naccepting aiithorityfof't1\u00a7ie._\ufb01.:st respondent dated 14-8-O8\n(Vide AnneXure--B}.  C \n\n,  Writ"Petiti0n coming on for hearing this day, the\n\n V' "('...ou'1*t"n1.ade"i--the following :\n\nORDER\n<\/pre>\n
C’  .respondent No.1 –~ Karnataka Drugs & Logistics<\/p>\n
 Wa;re3i1ousing Society issued a tender noti\ufb01cation on<\/p>\n
   calling for bids in respect of five medical items,<\/p>\n
  .in_cluding the item called Vitamin–A–2 lakhs l.U. Soft<\/p>\n
I<\/p>\n
\\”””‘<\/p>\n
_ 3 _
\nGeiatin Capsules. In pursuance to the said noti\ufb01cation,<\/p>\n
petitioner submitted its bid in respect of the said item in<\/p>\n
two covers, one being technical bid and anothjertfbeing<\/p>\n
commercial bid. The Tender  <\/p>\n
constituted for the purpose of sc1\u00b0utinisi’n5g’0Vithe” tendefsrdd<\/p>\n
gave the report to the effect tthatrdthe  <\/p>\n
petitioner is non–responsive, because at the fi_rst,inst’ance,'”<\/p>\n
the tenderer has not pi’Qduced”i5ei’foi’rnance “Certi\ufb01cate in
\nthe portal. It is also   ‘Cer\ufb01\ufb01cate sent<\/p>\n
through E–I\\\/East} byptfhe  per annexure-HI<\/p>\n
of the  Tthetvrecommendation of the
\nTender  is accepted by the Tender<\/p>\n
Accepting   of respondent No.1 and<\/p>\n
 0Aconseduent1y,’_treated’ the bid of the petitioner as non\u00bb<\/p>\n
 xf.B:eing aggrieved by the said order, the<\/p>\n
 _ petit”1’\u20ac)ne.:’  an appeal before the 2nd respondent under<\/p>\n
Section 310(1) of the Karnataka Transparencyyin Public<\/p>\n
4’_’_AnA~__iE’i<ocu1*:erI1ent Act, 1999 and Rules 2000. The said appeal<\/p>\n
0  came to be dismissed by the order dated 4.10.2008 as per<\/p>\n
we<\/p>\n
 ; is asundiier  <\/p>\n
Annexure~'A' to the writ petition. Questioning the "sarrie,<\/p>\n
this writ petition is \ufb01led.\n<\/p>\n
2.Having regard to the facts stated above, <\/p>\n
that the tender of the petitioner is”rej-ectecl  the it<\/p>\n
ground that the petitioner has  <\/p>\n
Performance Certi\ufb01cate as”‘–\u00ab,p’er profoim\u00e9i V”fou”nd in<\/p>\n
Annexure-III of the  \u00ab’HOWieVer, the
\npetitioners have furrlishe-d_ tIi1e1’VPerfotjrri_a.nce Certi\ufb01cate<\/p>\n
issued by the”  wi\ufb01eraia State as per<\/p>\n
Annexuvr\u00e9ffj’ it is relevant to note the
\ncontentsiof the Perior3:i1aiicei~’Certi\ufb01cate issued in favour of
\nthe peti.tioI1er   Controiler, Kerala State, which
\n‘V    dV.i’.i’-EERFORMANCE CERTIFICATE<\/p>\n
 Du\/i\/s.Sangrose Laboratories Pvt. Ltd.,<\/p>\n
ii”.-u.__”i.ndustriai__AEstate, Kallimel P.O. Maveiikkara, Kera1a–69O<\/p>\n
 holds Drugs Manufacturing Licence in Form No.25
\n_ _;_&.28 ‘Licence No. 15 25 88 did. 27.05.88 and 11 28 95
\n   11.06.95 to manufacture drugs iisted therein.<\/p>\n
\\~\/><\/p>\n
_5_<\/p>\n
This is to certify that the firm has 20 years
\nperformance in the manufacture of drugs licensed<\/p>\n
therein.\n<\/p>\n
This Certificate is issued to be produced<\/p>\n
Karnataka State Drugs Logistics &  ‘V’ <\/p>\n
Society.\n<\/p>\n
M.P.G3\u00a7iORG”n3._  _ ._
\nDRUGS coNTi\u00a7oLLER.. _ “V _ ~
\nIt is also relevant at thisdstage todnotei ‘the’:’profonna
\nof Perfonnance Certi\ufb01catfe .._u.nder Anrieicure-III to<\/p>\n
the Tender Document.  produced at<\/p>\n
Annex’dre–*\u00a7”   :\n<\/p>\n
”   .   III
\n‘ ‘V   in H V _____ H y:Ref. Section II — Clause No.2.A-12
\n   CERTIFICATE<\/p>\n
 ._ ._  to certify that
\nWI \/  i   …………………….. .. situ ated at<\/p>\n
 ……… .. Are holding licence\/s in form\/s.<\/p>\n
 V.  provisions of Drugs and Cosmetic Act 1940<\/p>\n
and Rules there under and that their<\/p>\n
performance for the preceding three financial<\/p>\n
P’<\/p>\n
years 2005-06, 2006307, 2007-08 i.e..
\n31.03.2006.\n<\/p>\n
O\\\ufb0160\\\ufb01
\nfor<\/p>\n
31.03.2007 8: 3l~03–2008 is<\/p>\n
satisfactory and that :-\n<\/p>\n
i.\n<\/p>\n
iii.\n<\/p>\n
the Drugs in respect of which..~\u00ab~~t.hi.s__’
\ncerti\ufb01cate is issued stated at P’ar’a,{?.:)”‘
\nbelow is \/ are manufactured on”et,hei’1*._’_:VpV <\/p>\n
own license and not ()I’:\u00a7C1’l0E?%-Iwi .1-icensef    ‘<\/p>\n
The manufactureriias his down’ v.Qu._aiity <\/p>\n
Control section.\n<\/p>\n
During the ‘proceedi\u00e9ifig 0thifee’lyears there
\nis no instance of ‘lltsuvsperision or<\/p>\n
 a  fwhole of a license<\/p>\n
0’ issu.eci~:’to.0themanufacturer in respect of<\/p>\n
   is \/ are offered by the<\/p>\n
ma’nufactui’er in the tender mentioned<\/p>\n
in Paralw\u00e9t below on account of Drugs<\/p>\n
  “Not of Standard Quality”.\n<\/p>\n
1′ is<\/p>\n
‘ \ufb01uring the preceding three years, there<\/p>\n
of<\/p>\n
cancellation of license\/s or a part<\/p>\n
no instance suspension or
\nthereof stated in Para 1 for violation of<\/p>\n
conditions of the license \/ s granted.<\/p>\n
Y”\n<\/p>\n
_ 7 _
\nV. There is no instance wherein any of the<\/p>\n
Drugs manufactured by the<\/p>\n
manufacturer is reported to be spurious?”-,p<\/p>\n
or adulterated.\n<\/p>\n
Vi. No administrative action or prosec_utionVi’ %<\/p>\n
is contemplated or launched the  <\/p>\n
manufacturer under ‘—,thg’=_’= ..Dr11gs”~  <\/p>\n
Cosmetics Act, .1940 am-y1″‘Ruies’ii  it; it<\/p>\n
under in respect of offered fay zhirri
\nin the tender..V_mentior;neti VVii3.._Para’graph 2<\/p>\n
below.\n<\/p>\n
This certifiagate  iseiied\u00ab. purpose of
\n  tencier for Rate Contract<\/p>\n
for*_ i’suppiyjf2.hVof_:V’-Ii\ufb01yruhgs, Chemicals 8:<\/p>\n
Misce\ufb02aneous’4Vi’i”‘eiris.*to be Additional Director,<\/p>\n
V’ 0 Karnataka.  Vistate Drugs Logistics 8:<\/p>\n
in  Warehhousing iiii H Society, Government of<\/p>\n
A * T_ “for the year 2008-10.\n<\/p>\n
 0 S1 No.-if -j  Name of the drug \/ preparation<\/span><\/p>\n
\u00bb At ‘T \u00abPlace:\n<\/p>\n
” — _ Bate: Signature of the Certifying Authority <31 Seal<\/p>\n
Use photocopy if the space is not sufficient"<\/p>\n
F\/S<\/p>\n
_ 3 _
\nThe Performance Certi\ufb01cate to be furnished by the<\/p>\n
intending tenderers and Annexure\u00bb~IIl requires Various<\/p>\n
factors to be stated in the said certificate. It <\/p>\n
specifically mentioned in the Performance  _<\/p>\n
the performance of the tenderer for the  three "<\/p>\n
\ufb01nancial years 2005\u00ab~06, <\/p>\n
satisfactory; that the drug inilcfu-estionv~   in<\/p>\n
its own license: that the 1nanfufacturer"\u00abhas own
\nQuality Control sectionj"'thatl-dti–riin\u00e9"theV:proceeding three<\/p>\n
years. there is  instance'  suspension or cancellation<\/p>\n
of a part'   license  to the manufacturer
\nin respectpl V thVe".l'\u00bb\u00abw'hich is\/ are offered by the<\/p>\n
manufacturer  the tender; that during the preceding<\/p>\n
 'three ye'arsV;r.optherelllllis no instance of suspension or<\/p>\n
 of-license\/s or a part thereof; that there is<\/p>\n
 _ no insta;r_icevi':Wfherein any of the Drugs manufactured by<\/p>\n
 ,_manufacturer is reported to be spurious or<\/p>\n
l_l_pr~__ad_u1terated; and that no administrative action or<\/p>\n
T prosecution is contemplated or launched against the<\/p>\n
N"\n<\/p>\n<\/p>\n
– 9 _
\nmanufacturer under the Drugs and Cosmetics Act, 1940<\/p>\n
and Rules there under in respect of Drugs offered by him<\/p>\n
in the tender.\n<\/p>\n
From the above, it is amply clear that  <\/p>\n
should be above board and he AVt11e”” <\/p>\n
conditions mentioned in the P’e1’fc=_r:r3.’ance’~Certi\ufb01cate_,:<\/p>\n
apart from satisfying otherdy\ufb01oilditioils as i’f0ui1’ki-…ini the\ufb02’<\/p>\n
Tender Notification. The req1i’irein_ents “stated in the
\nPerformance Certificate ‘ ;~ar_ef’;=V substantive in nature.<\/p>\n
Therefore, Terideir   in bits wisdom has<\/p>\n
directeti the “furnish the Performance<\/p>\n
Certificatexdtiiyv  the authorised agency of the<\/p>\n
 ‘_Dru_g-:.:CVor1trV01 nbepartrnent certifying the aforementioned<\/p>\n
   ” it<\/p>\n
 in the case on hand, the petitioner has<\/p>\n
A “:iprodi1\u00abced the Performance Certi\ufb01cate by Drugs Controller<\/p>\n
 oi’\u00a7Kera1a State, which does not specify any material fact<\/p>\n
I\/wt<\/p>\n
_ 19 _
\nas is required in the proforma Performance Certi\ufb01cate.<\/p>\n
The Performance Certi\ufb01cate submitted by the petitioner<\/p>\n
merely reveals that petitioner is having”~._Tdrugs<\/p>\n
manufacturing iicense to manufacture the  <\/p>\n
thereunder and that it has 20, years  of if<\/p>\n
manufacture drugs listed thereuniderl.’_’f <\/p>\n
factors, no other factors arestated .”in__ the “Pe’rfor1’11’ance”‘C<\/p>\n
Certificate. Therefore,\u00bb the ATend_erV”‘Accepti11gAuthority
\nhas rightly rejected the tender-<\/p>\n
Mae  couriiself  thepetitioner submits that<\/p>\n
the petitioi’1er,VVhas.,:’\ufb011>rriisi1ed “C relevant particulars along<\/p>\n
With the Tender  and therefore, nommentioning<\/p>\n
 of  particu’lars____in. the Performance Certificate by the<\/p>\n
 C_ontr.olier, Keraia State, may not be fatal to the<\/p>\n
caseof the’.Vpet’i’tioner. The said submission also cannot be<\/p>\n
 jvacceputedlgp The materials furnished by the petitioner along<\/p>\n
A \u00bb”t~he Tender Documents do not satisfy the requirement<\/p>\n
  of the contents of the Performance Certificate contained in<\/p>\n
V’<\/p>\n
_ 11 _
\nAnnexure–III to the Tender Noti\ufb01cation. The petitioner has<\/p>\n
not furnished any document to show that during the<\/p>\n
preceding three years, there is no suspensi:on’~..Vyor<\/p>\n
cancellation of part or whole of the license  <\/p>\n
manufacturer in respect of the drugson account ofdrusgs <\/p>\n
being not of standard quality. Soxals_o,”‘no”inforInatio.n”is<\/p>\n
furnished by the petitioner show that  the ‘V<\/p>\n
preceding three years, there,is”no’-instance “of suspension
\nor cancellation of license or part’ t’hereOAfrfor__vio1ation of the<\/p>\n
conditions of *t_h_’e license. “‘7f~’-i’he other necessary<\/p>\n
require;nent’  no instance wherein any of the
\ndrugs  petitioner is reported to be<\/p>\n
spurious or ‘ad_ulterate-d and that no administrative action<\/p>\n
.”oryVp’rosecnt’ion islcontemplated or launched against the<\/p>\n
 Drugs and Cosmetics Act, 1940 and<\/p>\n
 _ Rules theretrnder in respect of the drugs offered by him.<\/p>\n
” ” *  s, itis amply clear that the petitioner has not satisfied<\/p>\n
th:e”‘tender conditions. It is by now well settled that the<\/p>\n
T  ‘terms of the invitation to tender are not open to judicial<\/p>\n
W5<\/p>\n
— .12 —\n<\/p>\n
scrutiny as the same being in the realm of contract. That<\/p>\n
the Government must have a free hand in setting the<\/p>\n
terms of the tender. In other words, a fair <\/p>\n
joints is a necessary concomitant for an a_.dminis’trat}I.(e~–.p<\/p>\n
body functioning in an administrative spherefor’ qua’s_i~<\/p>\n
administrative sphere. The courts”‘woi_i1d: interfere <\/p>\n
administrative poiicy decisio__n”~~._pon1y if’  “a’rbitrary}”<\/p>\n
discriminatory, malafkie or ‘st:-;l’Ct.’!.’,-1.’V_.a:’.te’VVC’l’ by bias~. The tender
\ninviting authority is   adjustments<\/p>\n
which may be. sailed for by,9th.eA”‘p’articiiiar circumstances.<\/p>\n
The  dovvndythe terms of the tender
\nprescribed by the’Cfove~rri1nent because it feels that some<\/p>\n
other –i:errns'”iny the tender would have been fair, wiser or<\/p>\n
d\ufb01iogiycald. :,.f1~\u00a7orr:ial1y\u00abvs’peaking, the decision to accept the<\/p>\n
terider ~er–._aw?ard the contract is reached by process of<\/p>\n
negotiaitioris’through several tiers. More often than not,<\/p>\n
W H ”   decisions are made qualitatively by experts.<\/p>\n
V<\/p>\n
R131<\/p>\n
The mandatory preconditions imposed by the “State<\/p>\n
authority on the intending tenderers should be <\/p>\n
strictly. Apart from possessing, the minimuni—  *<\/p>\n
requirements, the documents which’ ate drgnaterialgfor V<\/p>\n
assessing the fact that the petitionenhasidd\ufb01ii\ufb01iled<\/p>\n
necessary requirements mus*t.._b-eg fur”nishe.d.’*_: V’Qvtheriwise,”‘<\/p>\n
the intending tenderer :4 tube exc1’uded from
\nconsideration. The  and
\nthe documents”toL_’be  of the same
\nshould be  instrurnentality of the
\nState.  dddd  Winformation\/documents
\nsuppliedihiasto’  by the instrumentality of<\/p>\n
the State.  the same would result in<\/p>\n
.\ufb02’s11b”stant’ia1 “t’prejudiVceddor injustice and consequently. the<\/p>\n
  suffer. Where the Tender Inviting<\/p>\n
 _ AuthorityFwinstrurnentality of State has constituted and<\/p>\n
 linterpretedd the standards prescribed in a particular<\/p>\n
manna and has acted accordingly, the Court would not<\/p>\n
~ ‘interfere in substantive interpretation which it considers<\/p>\n
‘\/73<\/p>\n
e 14 _
\nto be correct. The Court will not act as an Appellate<\/p>\n
Authority in such matters to substitute its own<\/p>\n
conclusion to that of the Tender Inviting Authority:<\/p>\n
In View of the above, this Court does\u00bb;I”1’oft fii’1c4_igar:y 2<\/p>\n
ground to grant relief to the pet:i’t.iVo:nAer <\/p>\n
writ petition. Accordingly, therpetitior1.fai1s;TV the  V<\/p>\n
is dismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court M\/S Sangrose Laboratories Pvt Ltd vs Karnataka Drugs And Logistics And on 3 September, 2009 Author: Mohan Shantanagoudar IN THE HIGH COURT OF KARNATAKA AT BANGALQRE DATED THIS THE 3″” DAY or-” SEPTEMBER BEFORE : THE HON’BLE MRJUSTICE MoHx.N”SHAMoTAr.i@e:ouo\u00abAI\u00a7neo A wan PETITION No.135e1z”2ooes (eIv\\eTEN)t A Between : M\/s. Sangrose Laboratories” _ Pvt., […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-237857","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nM\/S Sangrose Laboratories Pvt Ltd vs Karnataka Drugs And Logistics And on 3 September, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-sangrose-laboratories-pvt-ltd-vs-karnataka-drugs-and-logistics-and-on-3-september-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Sangrose Laboratories Pvt Ltd vs Karnataka Drugs And Logistics And on 3 September, 2009 - 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