IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE ELEVENTH DAY OF NOVEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE V.V.S.RAO WRIT PETITION NO : 18358 of 2004 Between: B. Siddiramulu, S/o. Ramaiah, R/o. Dayara Street, Medak Town, Mandal and District, Medak. ..... PETITIONER AND 1 The Commissioner, A.P. Vaidya Vidhana Parishad, Sultanbazar, Koti, Hyderabad. 2 The District Co-ordinator, Hospital Services, Medak District. Hqrs at Sangareddy. 3 The Medical Superintendent, Area Hospital, Medak Town, 4 Patlolla Shashidhar Reddy, M.L.A - Medak, Chairman, Hospital Development Committee, Area Hospital, Medak. 5 Area Development Society, Rep. by its Chairman, Area Hospital, Medak. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Aﬃdavit ﬁled herein the High Court will be pleased to to issue an order or direction or Writ specially WRIT OF MANDAMUS declare the Letter No. 88/AHM/2004 dt. 7-9-2004 on the ﬁle of 3rd Respondent, Letter dt. 4-9-2004 of 4th Respondent and also resolution dt. 4-9-2004 of 4th Respondent and also resolution dt. 4-9-2004 of the 5th Respondent, as the same are contrary to Para.9(v) and Para.11 of G.O.Ms.No.90, Health, Medical and Family Welfare (M1) Department dt. 17-4-2003 of Principal Secretary to Government of A.P. and Proceedings Rc.No.2093/IIFC-B/2004 dt. 5-3-2004 of Respondent No.1 apart from voilation of Art.14 of Constitution of India, and consequently set aside the same as illegal and arbitrary Counsel for the Petitioner:MR.M.VENKAT RAM REDDY Counsel for the Respondents: GP FOR MEDICAL HEALTH & FAMI.WELFARE The Court made the following Order: THE HON'BLE SRI JUSTICE V.V.S.RAO WRIT PETITION No.18358 of 2004 ORDER: The petitioner is a dairy contractor of supplying various food items to Area Hospital, Medak. He ﬁled instant writ petition seeking a writ of Mandamus declaring letter dated 07.09.2004 of third respondent addressed to second respondent and resolution dated 04.09.2004 of Hospital Development Society (HDS) resolving to award the contract of supplying milk and bread to Navodaya Voluntary Society (NVS). The petitioner was successful tenderer for supplying food items to the Area Hospital. Be it noted second respondent issued tenders in 1991 and the petitioner was awarded the contract. While the petitioner’s contract was in force, fourth respondent, who at the relevant time member of the legislative assembly, addressed the letter to second respondent informing that the work of the petitioner was not satisfactory and further recommending to award the contract to NVS. The petitioner is aggrieved by this. He contends that as per the orders of the Government in G.O.Ms.No.90, Health, Medical and Family Welfare (M1) Department, dated 17.04.2003, the hospital authorities and HDS have to necessarily call for tenders and select contractor for supply of good diet to the patients of hospital. Merely because local MLA addressed the letter, the respondents cannot award the contract to NVS. The respondents have not ﬁled counter-aﬃdavit, though notice was served on them. The Government in their orders in G.O.Ms.No.90 dated 17.04.2003 (GO) issued various instructions for eﬀective functioning of the hospitals and other health institutions. Para 9 thereof speaks of other residuary powers and functions of HDSs constituted as per para 2 thereof. Para 9(v) of GO reads as under. Hospital/Institutions Development Society is also empowered to select contractor for supply of good diet in the institution by calling or tenders or as prescribed by the Government. Development Society/concerned staﬀ should monitor and ensure the supply of good quality diet to patients as per norms and procedure prescribed by the Government time to time. The guideline is clear, even otherwise it is settled that a public authority, while dealing with the property or procuring services, cannot adopt an arbitrary method and follow such method which sub-serves public interest. It is also well settled that calling for tenders or conducting open auction is the best procedure and method to ensure public interest. Therefore, award of contract or the proposal therefor to award contract to NVS would certainly go contrary to para 9(v) of GO. Learned Assistant Government Pleader for Medical Health and Family Welfare, after getting instructions, submits that the petitioner is being continued as dairy contractor without any break. Therefore, the writ petition is disposed of observing that it shall be open to HDS to follow para 9(v) of GO and take further action in the matter. No costs. _____________ (V.V.S.RAO, J) 11th November, 2008 GHN To 1 The Commissioner, A.P. Vaidya Vidhana Parishad, Sultanbazar, Koti, Hyderabad. 2 The District Co-ordinator, Hospital Services, Medak District. Hqrs at Sangareddy. 3 The Medical Superintendent, Area Hospital, Medak Town, 4 Patlolla Shashidhar Reddy, M.L.A - Medak, Chairman, Hospital Development Committee, Area Hospital, Medak. 5 Area Development Society, Rep. by its Chairman, Area Hospital, Medak. 6 2CCs to GP for Medical Health and Family Welfare 7 2CD copies Form-NIC-OGS/WP{SPJS}