Patna High Court
M/s Martin and Brown Bio-Sciences Pvt. Ltd.versusThe State of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The Court declined to set aside the blacklisting order but granted the petitioners liberty to seek alternative remedies for the security deposit and penalties.
Summary
M/s Martin and Brown Bio‑Sciences Pvt. Ltd. filed a writ petition challenging a blacklisting order dated 23‑07‑2025 issued by the Managing Director of Bihar Medical Services and Infrastructure Corporation Ltd., which barred the company from supplying an antacid suspension for two years and led to forfeiture of a security deposit and imposition of penalties. The petition sought quashing of the blacklisting, return of a composite security deposit of Rs. 19,71,799, and reversal of penalties amounting to Rs. 50,89,000, alleging lack of reasoned decision, denial of a chance to be heard, and unjustified penalties. The Court examined whether the administrative order could be set aside on grounds of procedural unfairness and whether the financial sanctions could be recovered. It held that the petition did not merit interference with the blacklisting order but granted the petitioners liberty to pursue alternative remedies under law. Consequently, the writ petition was disposed of, with liberty to approach other forums for redress.
Issues considered
- The blacklisting order dated 23‑07‑2025 can be quashed on the ground of lack of reasoned decision and violation of principles of natural justice.
- Whether the composite security deposit of Rs. 19,71,799 should be returned to the petitioner.
- Whether the penalties of Rs. 42,00,000 and Rs. 8,89,000 imposed on the petitioner are legally sustainable.
Subjects
- blacklisting
- security deposit
- penalty
- writ petition
- administrative law
- natural justice
- procurement
- public contract
- liberty to approach alternative remedies
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.9669 of 2026
======================================================
1. M/s Martin and Brown Bio-Sciences Pvt. Ltd. its registered office situated at
Village Malku Majara, Opposite Annapurna Hotel, P.O Bhud, P.S.- Baddi,
District- Solan (Himachal Pradesh), PIN- 173205 represented through its
authorized representative Rajesh Ranjan, male, aged about 48 years, son of
Arvind Kumar Singh, resident of Rudauli, P.S.- Bachhwara, P.O- Rudauli,
District- Begusarai.
2. Rajesh Ranjan son of Arvind Kumar Singh, resident of Rudauli, P.S.-
Bachhwara, P.O-Rudauli, District- Begusarai.
... ... Petitioner/s
Versus
1. The State of Bihar through the Secretary, Health Department, Govt. of Bihar,
Patna.
2. The Secretary, Health Department, Govt. of Bihar, New Secretariat, Patna.
3. Bihar Medical Services and Infrastructure Corporation Ltd., Second and
Third Floor, Swasthya Bhawan, behind IGIMS, Shiekhpura, Patna, Bihar
through its Secretary.
4. The Managing Director, Bihar Medical Services and Infrastructure
Corporation Ltd., Second and Third Floor, Swasthya Bhawan, behind
IGIMS, Shiekhpura, Patna, Bihar.
5. The General Manager, Bihar Medical Services and Infrastructure
Corporation Ltd., Second and Third Floor, Swasthya Bhawan, behind
IGIMS, Shiekhpura, Patna, Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Sanjeev Kumar Mishra, Sr. Adv.
Mr. M. Jaiswal, Adv.
Ms .Adya Pandey, Adv
Ms. Megha Kant, Adv.
Mr. Shubham Kumar Upadhyay, Adv.
For the Respondent/s : Mr. Advocate General
Mr. Rahul Kumar, AC to AG
For BMSICL : Mr. Lalit Kishore, Sr. Adv.
Mr. Ayush Kumar, Adv.
Mr. Kanishka Shanker, Adv.
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE RAJ KUMAR
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 09-07-2026 Heard the learned counsel for the parties.
Patna High Court CWJC No.9669 of 2026(2) dt.09-07-2026
2/4
2. The present writ petition has been filed seeking the
following reliefs:-
(i) For the issuance of appropriate
writ(s), order(s) or direction(s) for
quashing the order dated 23.07.2025
issued by the Respondent authority
whereby and whereunder the
petitioner company has been
blacklisted for the quoted product
Antacid Oral Suspension- each 5 ml
containing Aluminium Hydroxide
Magnesium + Hydroxide + Activated
Dimethicone (Antacid) 250mg +
250mg + 50mg per ml for a period of
2 years without any cogent, clear,
succinct or adequate reason, while
the necessity of reason emanates
from the broad doctrine of fairness in
decision making and additionally this
security deposit for this product shall
be forfeited. All unexecuted purchase
orders issued earlier shall also stand
cancelled.
(ii) For the issuance of appropriate
writ(s), order(s) or direction(s) upon
the respondent authorities to return
the Bank guarantee composite
Security Deposit of Rs. 19,71,799
(Rupees Nineteen Lakhs Seventy-One
Patna High Court CWJC No.9669 of 2026(2) dt.09-07-2026
3/4
Thousand Seven Hundred and
Ninety-Nine Only), which composite
Security Deposit covered three
separate products: (i) Antacid Oral
Suspension (the subject matter of the
Rate Contract and the NSQ dispute);
(ii) Ear Wax Solvent Drops; and (iii)
Metoclopramide Injection.
(iii.) For the issuance of appropriate
writ(s), order(s) or direction(s) upon
the respondent authorities to return
the penalty amounting to Rs.
50,89,000/- (Fifty Lakhs, eighty-nine
thousand) deducted impositions:(i)
Rs. 42,00,000/- deducted for
rejection of 28 "so called" Not of
Standard Quality batches, without
disclosure of raw test data or
opportunity to show cause; and (ii)
Rs. 8,89,000 imposed as Late
Delivery Penalty upon execution of
the quantity of humongous P.O.
which is wholly unjustified due to the
giving disproportionate cumulative
order burden twice the annual
estimated quantity and ignoring
request for extension of time of
execution of order.
3. At the outset, the learned Senior counsel for the
Patna High Court CWJC No.9669 of 2026(2) dt.09-07-2026
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petitioners seeks liberty on behalf of the petitioners to challenge
the order of blacklisting dated 23.07.2025, passed by the
Managing Director, Bihar Medical Services and Infrastructure
Corporation Ltd. , by availing such other alternative remedies as
are otherwise available under the law. Liberty, so sought is
granted.
4. Accordingly, the present writ petition stands
disposed of with the aforesaid liberty.
(Mohit Kumar Shah, J)
( Raj Kumar, J)
Nirmal/AKV
U
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