M.B. Sharma, J. - (1.) The purchase of drugs and medicines by the Directorate of Medical and Health Services, Rajasthan, Jaipur for the various hospitals run by the State Government of Rajasthan is under challenge in the present batch of writ petitions inter alia on the grounds that after having invited tenders for drugs and medicines they are to be finalised as per the terms and conditions of the tenders and the policy of the Slate Government under its letter dated March 10, 1988 which came into force after inviting the tenders can have no application to the finalisation of the tenders ; that the policy is arbitrary and is in contravention of Article 19(g) of the Constitution of India ; that the price preference to the State undertakings, namely Rajasthan Drugs Pharmaceutical Ltd. (for short, RDPL) is not in public interest.
(2.) On August 13, 1987 a tender notice for the purchase of drugs and medicines for the period 1987-1989 was issued by the Director, Medical and Health Services (Family Welfare) for Rajasthan, Jaipur, (for short, the Director). Under the aforesaid tender notice medicines and surgical instruments were divided in parts A, B and C and each part was further divided in Sections A, B and C. We are presently concerned with the tenders for part 'A'. The last date for submission of the tenders was September 26, 1987 and the date of opening the tenders was September 28, 1987. Somehow, the dates were changed and the last date for submission of the tenders was October 14, 1987 and the tenders were to be opened on October 16, 1987 at II am. The tenders have been invited from all the tenders or manufacturers who are public sector undertakings as well as private manufacturers. One of the writ petition (No. 697/88) has been filed by the Rajasthan Chemists Association and the members of the said association and other petitioners submitted their tenders for medicines of part 'A'. The tenders were opened on the specified date and the case of the petitioners is that their rates were lowest whereas the rates quoted by RDPL and other public sector undertakings were on much higher sides. The tenders were not finalised for a period of four months and orders were given to RDPL for supply of 80 lacs Vitamin 'A' Capsules i.e. I.U. worth Rs. 16 lacs approximately, at the rate of Rs. 20.50 per 100 capsules whereas the rates of Rs. 18.50 per 100 capsules were given by other tenders. It is further the case of the petitioners that on March 10, 1988 i e after almost 5 months of the opening of the tenders the State Government revised the policy for purchase of medicines. Earlier all the Drugs except for life saving drugs were purchased by inviting the tenders of rate contract and the tenders were granted to the manufacturers or their distributors whose quoted rates were the lowest but for the first time after inviting and opening the tenders the State Government revised the policy vide order dated March 10, 1988 and excluded the private pharmaceutical manufacturers and their distributors from the field of purchase of drugs which are being manufactured by the RDPL and other public sector undertakings for crores of rupees, and according to the petitioners the exclusion of private manufacturers and authorised dealers is arbitrary and not in public interest.
(3.) Notice of the writ petitions was given to the non-petitioners and reply has been filed. A reference to the reply shall be made as and when it is necessary but suffice to say that the tenders are said to have been bona fide ignoring the policy dated March 10, 1988 but it is admitted that before finalising the tenders orders were placed with RDPL. According to the non-petitioners the orders were placed to meet the urgent needs and due to the famine which acute in the State of Rajasthan and so far as the period for which the tenders have been invited the policy under order dated March 10, 1988 was not considered, though even earlier, there was a State policy to give preference to the public undertakings in the matter of purchase of medicines.;