NDLI: M/s. Daffodills Pharmaceuticals & Anr.v. State of U.p. & Anr. Vs. State of U.p. & Anr

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Natural Justice – Opportunity of hearing
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Natural Justice – Opportunity of hearing – Appellant-pharmaceutical supplier had bid for contract to supply various categories of medicines to the Health Department of the State – The State issued order dated 21.08.2015 directing its Medical and Health Department to stop local purchase from the appellant – It was alleged that there was a FIR against the appellant and CBI was inquiring into the same – The pending criminal case amounted to violation of the terms of the tender conditions – Appellant challenged the order dated 21.08.2015 before the High Court – Appellant contended that the criminal case in question was filed against an erstwhile Director, who had ceased to have any connection with the appellant – It was also contended that the decision of the State amounted to blacklisting and that it was issued without notice or pre-decisional hearing – High Court rejected the challenge – On appeal, held: In the instant case, even if one assumes that accused in the pending criminal case was involved and had sought to indulge in objectionable activities, that ipso facto could not have resulted in unilateral action of the kind which the State resorted to against the appellant, which was never granted any opportunity of hearing or a chance to represent against the order dated 21.08.2015 – It is settled that no one can be inflicted with an adverse order, without being afforded a minimum opportunity of hearing and prior intimation of such a move – High Court fell into error in holding that in matters of award of public contracts, the scope of inquiry in Judicial review is limited – Also, the order dated 21.08.2015 debarred the purchase of medicines for an indefinite duration – This action of the State, not to procure indefinitely, on assumption of complicity by appellant was in violation of principles of natural justice – Accordingly, order dated 21.08.2015 quashed – The impugned judgment of the High Court set aside – Contract – Public contract.
Judge	Hon'ble Mr. Justice S. Ravindra Bhat
Neutral Citation	2019 INSC 1366
Petitioner	M/s. Daffodills Pharmaceuticals & Anr.v. State Of U.p. & Anr.
Respondent	State Of U.p. & Anr
SCR	[2019] 15 S.C.R. 125
Judgement Date	2019-12-13
Case Number	9417

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