Court Rules Against Rejection of Chemists' Bids, Directs Prompt Review

The court found the rejection of chemists' bids for leasing shops due to lack of a service tax number unjustified, as service tax registration was not mandatory for them. The administration was directed to open the financial bids of the petitioners promptly to expedite the tender process for public welfare. The court also upheld the validity of the affidavit submission by the chemists, emphasizing compliance with tender conditions. Despite concerns about existing bidders, the court ordered the processing of petitioners' financial bids to ensure a fair tender process and timely finalization for public service.

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Issues:
1. Rejection of bids of chemists due to lack of service tax number.
2. Legal challenge to the requirement of service tax registration.
3. Delay in finalizing the tender process for leasing chemist shops.
4. Dispute regarding the opening of financial bids of petitioners.

Analysis:
1. The petitioners, chemists, submitted bids for leasing shops based on an advertisement inviting tenders. The bids were rejected during technical evaluation for not having a service tax number, a condition in the tender notice. The chemists argued that service tax was not applicable to them, but to the administration. The court found the rejection unjustified as service tax registration was not mandatory for chemists under the Finance Act, proposing to allow registration post-bid finalization.

2. The court noted the repeated attempts to lease the shops causing inconvenience and directed the administration to open the financial bids of the petitioners. The respondents' argument of urgency due to patient inconvenience was acknowledged, emphasizing the need to expedite the tender process for public welfare.

3. The issue of affidavit attestation by the Notary Public instead of the Executive Magistrate was raised. The court found the affidavit submission by the petitioners timely and valid, meeting the tender conditions. Lack of statutory requirement for Executive Magistrate attestation was highlighted, supporting the petitioners' compliance with the affidavit submission.

4. Concerns were raised regarding the impact on existing bidders if the financial bids of the petitioners were opened. The court balanced these concerns with the need for a fair tender process, ultimately directing the opening and processing of petitioners' financial bids in line with legal procedures.

5. The judgment emphasized the importance of timely finalization of tenders for public service, instructing the administration to conclude the tender process promptly. The writ petition was disposed of with directions for immediate action, ensuring transparency and adherence to legal requirements in the leasing of chemist shops.

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