Simplified Explanation of the Judgment:
The Patna High Court has directed the Bihar Health Department to pay a sum of ₹58,56,670 to a petitioner firm that had supplied medicines and medical equipment under government orders. The petitioner was awarded a supply contract after participating in a proper tender process. Despite supplying goods labeled “for government supply and not for sale,” the petitioner had not received payment.
The issue arose when it was found that the work order was issued by the Civil Surgeon-cum-Chief Medical Officer, Arwal, one day before his transfer, and allegedly without following procedural guidelines. The Health Department later refused to make the payment, stating procedural lapses by the officer concerned.
However, the Court ruled in favor of the petitioner, stating that:
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The petitioner cannot be penalized for any alleged irregularities committed by the issuing officer.
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The goods supplied were actually received and used by the Department, and none were wasted.
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Since the materials were utilized, the petitioner is legally entitled to the payment.
The Court ordered that the payment be made within eight weeks. If delayed, the petitioner will be entitled to simple interest at 8% per annum from the date of bill submission to the actual date of payment.
Significance of the Judgment:
This judgment ensures that genuine suppliers are not denied payment for goods that were validly used by government departments. It reinforces accountability within the administration and assures vendors that procedural lapses by officers won't nullify their rightful claims. It is a significant precedent protecting the financial interests of small and medium enterprises working with government bodies.
Legal Issues Decided:
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Whether a supplier can be denied payment due to administrative lapses of government officials.
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Whether government utilization of goods mandates payment irrespective of procedural errors in issuing orders.
Judgments Referred by Parties:
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Order in CWJC No. 7013 of 2020
Judgments Relied Upon by the Court:
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[Not explicitly cited in the judgment]
Case Title: M/s Garg Drugs v. The State of Bihar & Ors.
Case Number: Civil Writ Jurisdiction Case No. 2996 of 2024
Citation(s): 2024(4)PLJR
Coram and Names of Judges:
Hon’ble Mr. Justice A. Abhishek Reddy
Advocates Appeared:
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For the Petitioner: Mr. Avinash Shekhar
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For the Respondents: Mr. Government Advocate 8
Link to the Judgment:
https://patnahighcourt.gov.in/viewjudgment/MTUjMjk5NiMyMDI0IzEjTg==-IsNxEfAZhvM=
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