M/S.Ltb Infra Consultants PVT.LTD vs. The Commissioner Cum Secretary TO Govt. Health And Family Welfare Deptt.

Held

The Court held that it was not inclined to issue any direction to Opposite Party No. 2 to accept the supply of 45,000 RT-PCR test kits at the rate of Rs. 379.80/- when the same item was currently being procured at Rs. 49.10/-. The Court found force in the contention raised by the learned State Counsel regarding the drastic reduction in rates in subsequent tenders and the potential financial loss to the State Exchequer. The Court characterized the dispute as a contractual one. It was observed that it is always open to the petitioner to approach the appropriate Civil Court for any remedy available in law. The Court did not expressly leave any issue undecided.

Facts

M/s. LTB Infra Consultants Pvt. Ltd. (Petitioner) filed a writ petition challenging an order dated 28.10.2020 by the Managing Director, Odisha State Medical Corporation Ltd. (Opposite Party No. 2) and a letter dated 29.05.2020 from Opposite Party No. 3. The petitioner sought a direction to Opposite Party No. 2 to issue a purchase order for 45,000 testing kits, as per an earlier purchase order dated 11.05.2020, after the initial supply of 5,000 kits was satisfactorily validated by RMRC on 15.05.2020 and 16.05.2020. Previously, the petitioner had filed a writ petition challenging the non-acceptance of further supply. That petition was disposed of with a direction for the petitioner to offer supply at the L-1 rate or a reduced rate, and for Opposite Party No. 2 to pass a reasoned order within 15 days. The petitioner submitted a representation on 15.10.2020, which was rejected by Opposite Party No. 2 on 28.10.2020.

Key Issues

1. Whether the order dated 28.10.2020 issued by the Managing Director, Odisha State Medical Corporation Ltd. (Opposite Party No. 2) and the letter dated 29.05.2020 issued by Opposite Party No. 3 are liable to be quashed, and whether Opposite Party No. 2 should be directed to issue a subsequent purchase order for 45,000 kits as per the purchase order dated 11.05.2020, given the satisfactory validation of the initial supply. Petitioner's contention: The petitioner argued that the Court, in a previous writ petition, permitted them to approach Opposite Party No. 2 by agreeing to the L-1 rate or any reduced rate, based on the opposite parties' statement and offer. However, Opposite Party No. 2 arbitrarily rejected their representation. Revenue/State's contention: The Additional Government Advocate submitted that tenders for RNA Extraction Kits and RT-PCR test kits have been finalized. While the L-1 rate in the earlier tender was Rs. 379.80/- plus GST, subsequent tenders finalized at drastically reduced rates of Rs. 49.10/- including GST for RT-PCR COVID-19 Test kits and Rs. 36.00/- including GST for RNA Extraction kit. Allowing the petitioner's request would cause a huge financial loss to the State Exchequer.