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2016 DIGILAW 503 (UTT)

Om Sai Enterprises v. State of Uttarakhand

2016-08-22

SUDHANSHU DHULIA

body2016
JUDGMENT : The petitioner before this Court is a proprietorship firm, which is engaged in a business of buying and selling of drugs. The main business of the petitioner is to supply drugs to government hospitals. In the present case, it is State Mental Health Institute based at Selaqui, Dehradun. For the supply of drugs for the year 2016-17 to government hospital, the petitioner participated in response to an advertisement. The contract was to be given by a two bid system. The petitioner qualified the technical bid, however, after opening the financial bid, it was not given to the petitioner but an objection was raised that since the licence of the petitioner under the Drugs and Cosmetics Rules was only till 21.11.2016 he is not qualified. On the basis of this, the petitioner has not been given the contract. 2. According to the learned State Counsel, the matter went before the District Magistrate, who has also upheld that contract was rightly not given to the petitioner but on different grounds, as the petitioner was the sole bidder and there was no competition. Although there is no such order on record. 3. Be that as it may, the case of the petitioner is that once he had qualified the technical bid, the subsequent objection on his technical bid could not have been raised. According to the petitioner, since the licence given to him was valid upto 21.11.2016, therefore the date when the petitioner gave his bid i.e., 05.07.2016 he was having a valid licence. The petitioner has relied upon Rule 63 of the Drugs and Cosmetics Rules, which relates to duration of licence. Rule 63 of the Drugs and Cosmetics Rules reads as under:- “Section 63. Duration of licence.- An original licence or a renewed licence to sell drugs, unless sooner suspended or cancelled, shall be valid for a period of five years on and from the date on which it is granted or renewed: Provided that if the application for renewal of licence in force is made before its expiry or if the application is made within six months of its expiry, after payment of additional fee, the licence shall continue to be in force until orders are passed on the application. The licence shall be deemed to have expired if application for its renewal is not made within six months after its expiry.” 4. The licence shall be deemed to have expired if application for its renewal is not made within six months after its expiry.” 4. In view of the above provision, the learned counsel for the petitioner contends that the provision to Rule 63 clearly states that in case the petitioner has applied for renewal of a licence, the licence shall be deemed to have been continued unless any order is passed on such an application. Moreover, even in the event the licence had expired, it shall continue to operate for a further period of six months. 5. Admitted fact, however, is that as of now, the petitioner has not applied for renewal of his licence as there is no application for renewal is pending, as according to the petitioner his application dated 11.07.2016, where Inspector of Drugs, Dehradun has made an endorsement that licence cannot be renewed before end of time of validity. This according to the petitioner is in violation of Rules 63 of the Drugs and Cosmetics Rules. 6. However, since the grant of licence or renewal of licence is not a factor which is challenged before this Court, it is made clear that as and when the petitioner moves an application for renewal, the same shall be considered in accordance with law. 7. Meanwhile, since as per the directions of the District Magistrate a fresh advertisement has already been issued and the petitioner has also purchased the bid document, the petitioner would be at liberty to apply for the bid. The respondent authorities shall evaluate the technical bid of the petitioner particularly regarding his licence in terms of Rules 63 of the Drugs and Cosmetics Rules. 8. The writ petition stands disposed with the above directions.