Authority: High Court at Calcutta (Constitutional Writ Jurisdiction)

Order Date: 27 August 2026

Case Overview

  • Petitioners: Kemecos India Private Limited & others; Respondents: Uttar Pradesh Medical Supplies Corporation Limited (UPMSCL) & others.
  • Petition sought mandamus to stop action based on show‑cause notice dated 31 Dec 2025 and to release payment of Rs 1,53,91,742.16.
  • UPMSCL procured Benzyl Benzoate Application 25 % W/W, 100 ml bottles via e‑tender; Kemecos supplied 1,401,000 bottles valued at Rs 1,65,38,525.
  • Respondents issued first show‑cause notice (16 July 2025) alleging 26 batches not of standard quality; subsequent notices on 31 Dec 2025 and 2 Feb 2026.
  • Penalties imposed: flat 20 % penalty on value of non‑standard batches, 0.2 % demurrage, cost of destruction, and three‑year blacklist for the drug.
  • Petitioners contested the notices, arguing lack of microbiological test requirement per Indian Pharmacopoeia and procedural irregularities in sampling and testing.
  • Respondents relied on tender clauses 11(v)‑(vii) and 13, and on UPMSCL Quality Policy and empanelled laboratories accredited under NABL.
  • Respondents also raised preliminary objection on jurisdiction, invoking Clause 21 of contract (dispute resolution) and territorial jurisdiction.

Final Outcome

  • The Court held that the respondents’ order dated 26 August 2025 was not illegal; the sampling, testing and penalty provisions were within the tender conditions and applicable law.
  • The preliminary objection on jurisdiction was rejected; the Court affirmed its jurisdiction.
  • WPA No. 3159 of 2026 was dismissed in its entirety; the petitioners’ claim for mandamus and payment was denied.

Topics: Court Judgment, Pharmaceutical Procurement, Tender Dispute