Bombay High Court hears writ petition against rejection of techno-commercial bid in bivalent oral polio vaccine tender. Petitioners alleged arbitrariness and favoritism in awarding contract to third respondent, citing violation of CVC Guidelines.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The judgment arises from a writ petition filed under Article 226 of the Constitution of India challenging the decision of Haffkine Bio-Pharmaceutical Corporation Ltd. (Respondent No.1) to reject the techno-commercial bid of the Petitioners in a tender floated on 20 January 2016 for the supply of Bivalent Oral Polio Vaccine Bulk manufactured by PT. Bio-Farma, Indonesia. The Petitioners, M/s Nirlac Chemicals and Universal Exim FZE, claimed to be exclusive distributors of PT. Bio-Farma in India and had supplied the vaccine to Respondent No.1 since 2000. They alleged that the tender process was conducted in an arbitrary and discriminatory manner with a view to favour Respondent No.3, BioNet-Asia Co. Ltd., in flagrant violation of CVC Guidelines. The Petitioners sought quashing of the impugned rejection letter dated 22 June 2016 and cancellation of the contract awarded to Respondent No.3. The High Court initially heard the matter on 25 August 2016 and directed Respondent No.1 to produce original records. On 30 August 2016, the original tender files were produced, and the Court, after allowing inspection by parties, heard the matter finally on 1 September 2016 and reserved judgment. The Court recorded that no further affidavits would be allowed and that it would rely on the original records. The judgment was pronounced on 7 October 2016. The available text does not include the final decision, reasoning, or directions of the Court.

Issue of Consideration

Whether the rejection of the Petitioners' techno-commercial bid by Respondent No.1 was arbitrary, discriminatory, and in violation of Central Vigilance Commission Guidelines

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Case Details

2016 LawText (BOM) (10) 125

WRIT PETITION NO. 1911 OF 2016

2016-10-07

S.C. Dharmadhikari, B.P. Colabawalla

Mr Janak Dwarkadas, Sr. Counsel with Mr Chirag Mody, Mr Harshil Parekh and Mr Manish Parekh for Petitioners; Ms Usha Kiran Srivastav for Respondent No.1; Mr Mohit Jadhav, AGP for Respondent No.2; Mr Sanjay Jain with Mr Vivek Phadke for Respondent No.3

M/s Nirlac Chemicals, Universal Exim FZE

Haffkine Bio-Pharmaceutical Corporation Ltd., State of Maharashtra, BioNet-Asia Co. Ltd.

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Nature of Litigation

Writ petition under Article 226 challenging rejection of techno-commercial bid in a tender process for supply of bOPV and seeking cancellation of contract awarded to third respondent

Remedy Sought

Petitioners sought quashing of rejection letter dated 22 June 2016 and direction to Respondent No.1 to revoke/cancel tender awarded to Respondent No.3

Filing Reason

Alleged arbitrary and discriminatory conduct in tender process, violation of CVC Guidelines, and favouritism towards Respondent No.3

Previous Decisions

No prior adjudication mentioned; matter heard and reserved on 1 September 2016

Judgment Excerpts

This Writ Petition has been filed under Article 226 of the Constitution of India seeking a writ of certiorari to quash and set aside the decision of Respondent No.1 in rejecting the “techno-commercial” bid of the Petitioners in relation to the tender dated 20th January, 2016 floated for the supply of “Bivalent Oral Polio Vaccine Bulk” manufactured by a Company called PT. Bio-Farma, Indonesia. In a nutshell, the tender process has been challenged before us on the ground that the same has been carried out in an arbitrary and discriminatory manner and only with a view to favour Respondent No.3. Rule. Respondents waive service. By consent of parties, rule made returnable forthwith and heard finally.

Procedural History

Writ petition filed under Article 226; initially heard on 25 August 2016 when Court called for original records; records produced on 30 August 2016 and inspection allowed; final hearing held on 1 September 2016 and judgment reserved; pronounced on 7 October 2016.

Acts & Sections

  • Constitution of India, 1950: Article 226, Article 12
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