M/S Paras Medicos vs The Union Of India on 13 July, 2026

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    Patna High Court – Orders

    M/S Paras Medicos vs The Union Of India on 13 July, 2026

    Author: Rajesh Kumar Verma

    Bench: Rajesh Kumar Verma

                         IN THE HIGH COURT OF JUDICATURE AT PATNA
                                     Civil Writ Jurisdiction Case No.9936 of 2026
                     ======================================================
                     M/s Paras Medicos, A Proprietorship Firm Having its Registered Office
                     situated at Shokhanda Complex, Gohna Road, Police Station-Sector 12,
                     Sonipat, District - Sonipat (Haryana) through its Proprietor Naveen Jain, aged
                     about 51 years (male), Son of Jagdish Parshad Jain, Resident of House No.
                     2379, Sector 15, Near Huda Office, Sector-15, Police Station - Sonipat,
                     District - Sonipat (Haryana).
    
                                                                                       ... ... Petitioner
                                                      Versus
               1.    The Union of India Through the Secretary, The Ministry of Petroleum and
                     Natural Gas, Shastri Bhavan, New Delhi-110001.
               2.    The Indian Oil Corporation, through its Chairman Having its Registered
                     Office at Indian Oil Bhavan, G- 9, Ali Yavar Jung Marg, Bandra (East),
                     Mumbai, Maharastra, Pin Code 400051 and Corporate Office at Plot 3079/3,
                     Sadiq Nagar, JB Tito Marg, New Delhi-110049.
               3.    The Chairman, The Indian Oil Corporation, Having its Registered Office at
                     Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai,
                     Maharastra, Pin Code 400051 and Corporate Office at Plot 3079/3, Sadiq
                     Nagar, J B Tito Marg, New Delhi- 110049.
               4.    The Director (Refineries) Indian Oil Corporation Limited, Scope Complex
                     Core 27, Institutional Area, Lodhi Road, New Delhi - 110003.
               5.    The Indian Oil Corporation Limited Barauni Refinery, through its Executive
                     Director, P.O.- Barauni Oil Refinery, District - Begusarai (Bihar).
    
                                                               ... ... Respondents
                     ======================================================
                     Appearance :
                     For the Petitioner    :        Mr. Mayank Shekhar, Advocate
                     For the Respondents   :        Mr. Additional Solicitor General
                     ======================================================
                     CORAM: HONOURABLE THE ACTING CHIEF JUSTICE
                             and
                             HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA
                                           ORAL ORDER
    
                     (Per: HONOURABLE THE ACTING CHIEF JUSTICE)
    
    2   13-07-2026

    Heard learned counsel for the petitioner and learned

    counsel for the respondents.

    SPONSORED

    2. The following reliefs have been sought by the

    petitioner in the present writ application:-

    “1 (i) Issuance of an appropriate writ, order
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    or direction, more particularly a writ in the
    nature of Certiorari, for quashing and setting
    aside the proposed Quality-cum-Cost Based
    Selection (QCBS) Evaluation Parameters
    dated 12.05.2026, forming part of Bid No
    GEM/2026/B/7628926 dated 05.06.2026, to
    the extent they prescribe the evaluation
    criteria contained in Clause 3(a), Clause
    3(b), Clause 3(d), Clause 3(e), Clause 3(f)

    (iii) and Clause 7, as being arbitrary
    discriminatory, irrational, manifestly
    unreasonable tailor-made, violative of
    Articles 14 and 19(1)(g) of the Constitution
    of India, and consequently, unconstitutional
    and unenforceable;

    (ii) Issuance of an appropriate writ, order or
    direction declaring that the impugned
    evaluation parameters, namely, allocation of
    marks on the basis of (a) Average Annual
    Turnover, (b) Number of Years in Operation,

    (d) Number of Physical Outlets, (e) Pan-

    India Presence, (f)(iii) Employment of more
    than twenty registered pharmacists on the
    direct payroll, and the minimum qualifying
    benchmark prescribed under Clause 7, have
    no rational nexus with the object sought to be
    achieved, namely, efficient operation of
    pharmacy services at Bihar, and are
    therefore, liable to be struck down as
    arbitrary and violative of Article 14 of the
    Constitution of India 1950;

    (iii) Issuance of an appropriate writ, order or
    direction declaring that the cumulative effect
    of the aforesaid impugned clauses creates an
    unreasonable and artificial classification in
    favour of large corporate pharmacy chains,
    excludes and prevents otherwise competent
    local and regional pharmacy operators from
    effective participation in the tender process.
    destroys the constitutional requirement of a
    level playing field in public procurement and
    imposes an unreasonable restriction upon the
    Petitioner’s fundamental right guaranteed
    under Article 19(1)(g) of the Constitution of
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    India, 1950;

    (iv) Issuance of an appropriate writ in the
    nature of Mandamus directing the
    Respondents to suitably modify, revise and
    reframe the impugned evaluation criteria
    contained in the proposed QCBS Evaluation
    Parameters dated 12.05.2026 so as to ensure
    that the quality evaluation is based upon
    objective parameters having a direct nexus
    with the efficient management and operation
    of hospital pharmacy services, without
    conferring an arbitrary or disproportionate
    advantage upon bidders merely on account of
    their financial size, geographical spread,
    market dominance or historical existence;

    (v) Issuance of an appropriate writ, order or
    direction commanding the Respondents to
    undertake a fresh evaluation process after
    reformulating the quality parameters in a fair
    transparent, reasonable, non-discriminatory
    and constitutionally compliant manner,
    thereby ensuring equal opportunity and a
    level playing field to all eligible bidders;

    (vi) Pending admission and final disposal of
    the present writ petition, stay the operation,
    implementation and further proceedings
    pursuant to the proposed QCBS Evaluation
    Parameters dated 12.05.2026 forming part of
    Bid No. GEM/2026/B/7628926 dated
    05.06.2026, insofar as they relate to or are
    founded upon the impugned Clauses 3(a),
    3(b), 3(d), 3(e), 3(f)(iii) and Clause 7, and
    further restrain the Respondents from
    opening, evaluating or finalising the
    technical or financial bids on the basis of the
    impugned evaluation criteria;

    (vii) Pending disposal of the writ petition,
    direct the Respondents not to issue any Letter
    of Acceptance, Work Order or Award of
    Contract pursuant to Bid No
    GEM/2026/B/7628926 dated 05.06.2026
    until the constitutional validity of the
    impugned evaluation parameters is finally
    adjudicated by this Hon’ble Court;

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    (viii) Issuance of an appropriate writ, order
    or direction, more particularly a writ in the
    nature of Certiorari for calling for the entire
    records pertaining to the deliberations,
    proceedings, recommendations and decision
    of the Tender Evaluation Committee
    culminating in its decision dated 12.05.2026
    whereby the impugned Quality-cum-Cost
    Based Selection (QCBS) Evaluation
    Parameters for Pharmacy Services at
    Barauni Refineries were formulated and
    recommended for incorporation in Bid No.
    GEM/2026/B/7628926 dated 05.06.2026,
    and upon examination thereof, be pleased to
    quash and set aside the said decision and
    recommendation, being arbitrary, irrational,
    unsupported by any objective study,
    empirical material or intelligible criteria,
    suffering from non-application of mind, and
    consequently violative of Articles 14 and
    19(1)(g) of the Constitution of India, 1950;

    (ix) Issuance of an appropriate writ, order or
    direction declaring that the decision of the
    Tender Evaluation Committee dated
    12.05.2026, in so far as it recommends and
    approves the allocation of marks under
    Clause 3(a), Clause 3(b), Clause 3(d).
    Clause 3(e), Clause 3(f) (iii) and Clause 7 of
    the proposed QCBS Evaluation Parameters,
    is arbitrary, discriminatory, manifestly
    unreasonable. disproportionate and
    constitutionally unsustainable, inasmuch as
    the said criteria have no rational nexus with
    the object of selecting the most competent
    agency for operation of pharmacy services at
    BRH and instead confer an unjustified and
    disproportionate advantage upon a limited
    class of large corporate pharmacy chains;

    (x) Issuance an appropriate writ in the nature
    of Mandamus directing the Respondents to
    place before this Hon’ble Court the complete
    records relating to the formulation of the
    impugned evaluation matrix, including but
    not limited to the agenda notes, comparative
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    statements, feasibility studies, market
    surveys, expert opinions, minutes of
    meetings, file notings, recommendations,
    approvals and all materials relied upon by
    the Tender Evaluation Committee while
    arriving at its decision dated 12.05.2026, to
    enable this Hon’ble Court to examine
    whether the impugned evaluation criteria are
    founded upon any objective material and
    satisfy the constitutional requirement of
    fairness, reasonableness and non-

    arbitrariness;

    (xi) Issuance an appropriate writ, order or
    direction declaring that the Respondents
    have acted arbitrarily in adopting the
    impugned evaluation parameters without
    undertaking any objective assessment as to
    whether the criteria relating to turnover,
    years of operation, number of physical
    outlets, Pan-India presence and the
    requirement of more than twenty pharmacists
    bear any direct, proximate or rational nexus
    with the efficient operation of a single
    hospital pharmacy, and consequently hold
    that the decision-making process itself stands
    vitiated by arbitrariness, irrationality and
    failure to consider relevant factors;

    (xii) Issue an appropriate writ, order or
    direction directing the Respondents to
    disclose before this Hon’ble Court the
    empirical data, expert reports, comparative
    studies, market analysis, policy papers or
    other objective material, if any, on the basis
    of which the Tender Evaluation Committee
    concluded that higher turnover, longer years
    of operation, larger geographical presence,
    greater number of physical outlets and
    maintenance of more than twenty registered
    pharmacists constitute valid indicators of
    quality for the operation of pharmacy
    services at Bihar, failing which the impugned
    decision dated 12.05.2026 and the
    consequential tender conditions be declared
    arbitrary and liable to be quashed.

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    (xiii) Pass such other or further writ(s),
    order(s) or direction(s) as this Hon’ble Court
    may deem fit and proper in the facts and
    circumstances of the present case in the
    interest of justice.”

    3. The brief facts of the case are that the petitioner is

    the proprietor of M/s Paras Medicos and claims to possess all

    the requisite statutory licences and infrastructure for operating a

    hospital pharmacy. It is alleged that, despite fulfilling the

    eligibility conditions, the petitioner is unable to secure the

    qualifying technical score as certain evaluation parameters,

    being arbitrary, unreasonable and discriminatory, primarily

    award marks on the basis of turnover, nationwide presence,

    number of outlets and permanent pharmacists. Thus, the

    petitioner being aggrieved by the decision of the Tender

    Evaluation Committee dated 12.05.2026 recommending the

    impugned evaluation parameters and the consequential

    incorporation thereof in Bid No. GEM/2026/B/7628926 dated

    05.06.2026, has preferred the present writ petition.

    4. Learned counsel for the petitioner submits that bare

    reading of impugned evaluation matrix demonstrates that

    substantial weightage has been assigned to factors such as high

    annual turnover, longevity of business, number of physical

    outlets, geographical presence across multiple states and
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    maintenance of large workforce of pharmacists while little

    emphasis has been placed upon the actual capability of a bidder.

    However, the respondents have neither disclosed in the tender

    documents nor otherwise placed in the public domain any expert

    study, technical report, market assessment, empirical analysis or

    objective material demonstrating the basis upon which the

    Tender Evaluation Committee concluded that the impugned

    parameters are appropriate indicators. Learned counsel further

    submits that solely because the petitioner does not possess

    turnover exceeding Rs. 500 Crore, nationwide presence,

    multiple physical outlets and more than twenty pharmacists on

    payment payroll, the petitioner is rendered incapable of

    obtaining qualifying technical score prescribed under Clause 7.

    5. Learned counsel for the respondents submits that

    evaluation parameters are reasonable, justified, and non-

    discriminatory in nature. It is submitted that the tendering

    authority, being the expert body, is best placed to assess its

    requirements and to determine the eligibility criteria necessary

    for the effective execution of the services in question. Learned

    counsels further submit that the parameters have been framed

    after due consideration and are neither arbitrary nor vitiated by

    any favoritism towards any selected categories of entrants.
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    Moreover, it is pointed out that the eligibility criteria have been

    formulated solely in furtherance of public interest, with the

    object of ensuring efficient and reliable service delivery, and not

    to serve individual interest of any person.

    6. The limited question that arises for consideration is

    whether it is the prerogative of the authority issuing the tender

    to prescribe the evaluation parameters/criteria thereof.

    7. Upon perusal of the materials available on record

    and considering the submissions advanced by the learned

    counsel appearing for the parties, it is evident that the petitioner

    has challenged the decision of the Tender Evaluation Committee

    dated 12.05.2026 recommending the impugned technical

    evaluation parameters and the consequential incorporation

    thereof in Bid No. GEM/2026/B/7628926 dated 05.06.2026,

    primarily on the ground that the said parameters are arbitrary,

    unreasonable, discriminatory and violative of Article 14 of the

    Constitution of India.

    8. However, upon consideration of the materials

    brought on record, this Court finds that the impugned evaluation

    parameters, which assign weightage to factors such as annual

    turnover, geographical presence, number of outlets, experience

    and availability of permanent pharmacists, cannot, by
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    themselves, be construed as indicative of arbitrariness, bias or

    favouritism. Rather, it appears that the said parameters have

    been prescribed by the tendering authority keeping in view the

    nature, scope and operational requirements of running a hospital

    pharmacy so as to ensure efficient, uninterrupted and quality

    service delivery. The tendering authority, being the author of the

    tender document and the best judge of its requirements, is the

    best person to understand its functional needs and to determine

    the appropriate eligibility criteria for ensuring proper execution

    of the work. In this regard, it is relevant to take note of the

    decision of Directorate of Education v. Educomp Datamatics

    Ltd., reported in (2004) 4 SCC 19, wherein Division Bench of

    the Hon’ble Supreme Court observed that:

    “11. This principle was again restated
    by this Court in Monarch Infrastructure (P)
    Ltd. v. Commr., Ulhasnagar Municipal
    Corpn.
    [(2000) 5 SCC 287] It was held that
    the terms and conditions in the tender are
    prescribed by the Government bearing in
    mind the nature of contract and in such mat-
    ters the authority calling for the tender is the
    best judge to prescribe the terms and condi-
    tions of the tender. ….

    12. It has clearly been held in these de-
    cisions that the terms of the invitation to ten-
    der are not open to judicial scrutiny, the
    same being in the realm of contract. That the
    Government must have a free hand in setting
    the terms of the tender. It must have reason-
    able play in its joints as a necessary con-
    Patna High Court CWJC No.9936 of 2026(2) dt.13-07-2026
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    comitant for an administrative body in an ad-
    ministrative sphere. The courts would inter-
    fere with the administrative policy decision
    only if it is arbitrary, discriminatory, mala
    fide or actuated by bias. It is entitled to prag-
    matic adjustments which may be called for by
    the particular circumstances. The courts can-
    not strike down the terms of the tender pre-
    scribed by the Government because it feels
    that some other terms in the tender would
    have been fair, wiser or logical. The courts
    can interfere only if the policy decision is ar-
    bitrary, discriminatory or mala fide.”

    9. Similarly, in the case of Afcons Infrastructure

    Ltd. v. Nagpur Metro Rail Corpn. Ltd., reported in (2016) 16

    SCC 818, the Hon’ble Supreme Court has observed that:

    “15. We may add that the owner
    or the employer of a project, having
    authored the tender documents, is the best
    person to understand and appreciate its
    requirements and interpret its documents.
    The constitutional courts must defer to this
    understanding and appreciation of the
    tender documents, unless there is mala fide
    or perversity in the understanding or
    appreciation or in the application of the
    terms of the tender conditions. It is possible
    that the owner or employer of a project may
    give an interpretation to the tender
    documents that is not acceptable to the
    constitutional courts but that by itself is not
    a reason for interfering with the
    interpretation given.”

    10. Further, the Hon’ble Supreme Court in the case of

    Jagdish Mandal v. State of Orissa, reported in (2007) 14 SCC

    517, while explaining the scope of judicial review in tender
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    matters, observed as follows:

    “22. Judicial review of
    administrative action is intended to prevent
    arbitrariness, irrationality,
    unreasonableness, bias and mala fides. Its
    purpose is to check whether choice or
    decision is made “lawfully” and not to check
    whether choice or decision is “sound”. When
    the power of judicial review is invoked in
    matters relating to tenders or award of
    contracts, certain special features should be
    borne in mind. A contract is a commercial
    transaction. Evaluating tenders and
    awarding contracts are essentially
    commercial functions. Principles of equity
    and natural justice stay at a distance. If the
    decision relating to award of contract is bona
    fide and is in public interest, courts will not,
    in exercise of power of judicial review,
    interfere even if a procedural aberration or
    error in assessment or prejudice to a
    tenderer, is made out. The power of judicial
    review will not be permitted to be invoked to
    protect private interest at the cost of public
    interest, or to decide contractual disputes.
    …….”

    11. Similarly, in the case of Uflex Ltd. v. State of T.N.,

    reported in (2022) 1 SCC 165, the Hon’ble Supreme Court has

    observed that:

    “47. Insofar as the participating
    entities are concerned, it cannot be
    contended that all and sundry should be
    permitted to participate in matters of this
    nature. In fact, in every tender there are
    certain qualifying parameters whether it be
    technology or turnover. The Court cannot sit
    over in judgment on what should be the
    turnover required for an entity to participate.
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    ……….”

    12. In light of the foregoing discussions and settled

    position of law, this Court is of the view that the issue before us

    for consideration is to be answered in the affirmative. In such

    matters, the tendering authority is most suitably placed to assess

    its requirements, and the Court must not substitute its view for

    that. Further, it is well settled that the nature of works and

    services undertaken through tender processes varies from case

    to case. In the present case, having regard to the nature, scope,

    and requirements of the work involved, it cannot be said that the

    evaluation parameters prescribed in the tender notice are

    arbitrary or unreasonable. Owing to such variation in works and

    services, it is neither feasible nor desirable to prescribe any rigid

    or strait-jacket formula for laying down evaluation

    parameters/eligibility criteria. The authority inviting the tender

    is required to frame such evaluation parameters/conditions

    keeping in view the specific requirements, scope, and

    complexities of the work involved. Consequently, each tender

    must necessarily be examined on the touchstone of its own facts

    and circumstances.

    13. In view of the aforesaid discussion and the settled

    legal position, we find no substance in the challenge raised by
    Patna High Court CWJC No.9936 of 2026(2) dt.13-07-2026
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    the petitioner.

    14. Accordingly, the present writ application stands

    dismissed.

    15. Pending application(s), if any, shall stand disposed

    of.

    (Sudhir Singh, ACJ)

    (Rajesh Kumar Verma, J)
    U.K./-Nitesh
    U



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