True Court CopyTM English


Civil Appeal No. 8461 of 2016 (Arising out of S.L.P. (C) No. 14337 of 2016)

Decided On: 20.09.2016

Appellants: Shobikaa Impex Pvt. Ltd. and Ors.
Respondent: Central Medical Services Society and Ors.

Hon'ble Judges/Coram:
Dipak Misra and C. Nagappan


Dipak Misra, J.

1. The instant appeal, by special leave, has been filed questioning the justifiability of the judgment and order dated 10.05.2016 passed by the High Court of Delhi at New Delhi in W.P.(C) No. 1994 of 2016 whereby the Division Bench has declined to interfere with the decision taken by the Respondents to treat the bid submitted by the Appellants as non-compliant with the conditions of Invitation for Bids (IFB) which resulted in dismissal of the writ petition and the application for clarification.

2. The Appellant No. 1 is a company incorporated under the Companies Act, 1956 and the Appellant No. 2 is a proprietorship concern and its authorized agent is a director of the said company. The Appellant-company commenced manufacture of its insecticide product, Long Lasting Insecticide Net ("LLIN"). The World Health Organization Pesticides Evaluation Scheme (WHOPES) is the global body for monitoring, evaluating and approving LLIN brands, for without the said recommendation LLIN cannot be sold in the market. It is averred that WHOPES conducts very stringent tests at three levels before it gives recommendation to a product, which includes laboratory test, wash effective test and bio-efficacy field trial test, and due to rigorousness of the test, only handful of LLINs have been recommended by WHOPES and the Appellants' product that is DURANET(r) is one of them. The Appellant No. 1 was issued a license to manufacture insecticide on 08.01.2014 under the Insecticides Rules, 1971 (for short, "the Rules") and also allowed for carrying on wholesale dealing and storage for sale. The license granted in favour of the Appellant was renewed from time to time and it was valid till 31.12.2015.

3. As the facts as have been unrolled, the Appellant No. 2 vide application No. 45295 applied for provisional registration for the insecticides product, i.e., Alphacypermethrin Incorporated Long Lasting Mosquito Bed Net (commercial name being DURANET(r)) to the Central Insecticide Board (CIB) as per Section 9(3B) of the Insecticide Act, 1968 (for short, "the Act"). The Registration Committee of (CIB) in its 354TH meeting dated 31.03.2015 approved LLIN, that is, DURANET(r) for provisional registration Under Section 9(3B) of the Act for Public Health Programmes. We shall refer to the said decision of the CIBRC at the relevant stage.

4. The first Respondent floated a tender, i.e., CMSS/PROC/NVBDCP/2015-16/006 for procurement of 1 crore LLIN under National Vector Borne Disease Control Project. Section 1 of CIB pertained to Instructions to Bidders. Para 4 dealt with eligibility. Paragraph 5 provided for listing of the documents establishing conformity of goods and services to bidding documents. Paragraph 6 specified qualifications of the bidder. Paragraph 6(A) dealt with manufacturer bidders. After the Instructions to Bidders were issued incorporating various clauses including ones which have been referred to hereinabove, Amendment No. 3 to the bid document was made on 28.09.2015. The Clause contained in 6.1(A)(d)6 in Section