VidhiSangh

Supreme Court of India · 03/01/2023

M/S INDIAN MEDICINES PHARMACEUTICALS CORPORATION LTD versus KERALA AYURVEDIC CO OPERATIVE SOCIETY LTD. & ORS.

[2023] 1 S.C.R. 473 · 2023 INSC 7

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Summary

Uttar Pradesh bought Ayurvedic medicines under the National AYUSH Mission from IMPCL alone, by nomination, without inviting tenders. The Allahabad High Court held this illegal. The Supreme Court agreed. Paragraph 4(vi)(b) of the Mission's Operational Guidelines names IMPCL 'or' other PSUs, State pharmacies and GMP-compliant co-operatives, and places them all on an equal footing. Spending public money must satisfy Article 14. The State may depart from tendering only on cogent proof of exceptional circumstances. Its claim that only IMPCL makes quality medicines rested on surmise. Interventions seeking MSME quotas were dismissed as beyond the scope of the appeal.

Issues

  1. Whether, under paragraph 4(vi)(b) of the Operational Guidelines of the National AYUSH Mission, the State could procure Ayurvedic medicines solely from IMPCL by nomination without inviting tenders from the other eligible units.
  2. Whether a government purchase that involves no disposal of State property is exempt from the Article 14 requirement of a fair and transparent procurement process.

Provisions considered

Held

Result

Civil Appeal Nos. 6693 and 6694 of 2022 against the Allahabad High Court (Lucknow Bench) judgment dated 18.10.2019 in Writ Petition No. 1364 of 2019 dismissed; IA 9631 of 2020 and IA No. 46786 of 2022 dismissed; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2023] 1 S.C.R. 473.