VidhiSangh

Supreme Court of India · 13/12/2019

M/S. DAFFODILLS PHARMACEUTICALS & ANR.V. STATE OF U.P. & ANR. versus STATE OF U.P. & ANR

[2019] 15 S.C.R. 125 · 2019 INSC 1366

AI-generated headnote. Verify against the judgment before relying on it. Paragraph numbers refer to the judgment.

Summary

The Court quashed an indefinite direction prohibiting local medicine purchases from a supplier because it operated as debarment without notice or hearing. Pending criminal proceedings concerning a former director did not justify unilateral exclusion of the company. Limited review of public contracts did not shield a flagrant denial of natural justice; the earlier rejection of the supplier’s tender was a distinct matter.

Issues

  1. Whether an indefinite procurement prohibition amounted to debarment requiring prior notice and hearing.
  2. What relief was appropriate after the prohibition had operated for over four years.

Held

Result

Appeal allowed without costs. The High Court judgment was set aside and the Principal Secretary’s direction prohibiting local procurement from the appellant was quashed.

Judgment PDF: Supreme Court of India, [2019] 15 S.C.R. 125.