The Orissa High Court has held that the judgment of an earlier coordinate Bench holding a clause of a tender clause notice floated by the Directorate of Animal Husbandry and Veterinary Services to be non-discriminatory and non-arbitrary would have a binding effect on the latter coordinate Bench.

The High Court was considering a Petition challenging one of the clauses of the tender call notice for the supply of veterinary medicines and vaccines floated by the Directorate of Animal Husbandry and Veterinary Services, Odisha.

The Division Bench of Chief Justice Harish Tandon and Justice M.S. Raman stated, “The moment the earlier coordinate Bench held that the said impugned clause is non-discriminatory, non-arbitrary and not tainted with the vice of malice, favourtism and nepotism or offending the core value of the level playing field, such judgment assumes a binding effect on the latter coordinate Bench.”

Advocate Saswati Mohapatra represented the Petitioner while Advocate General Pitambar Acharya represented the Opposite Party.

Factual Background

The tender call notice for the supply of veterinary medicines and vaccines was floated by the Directorate of Animal Husbandry and Veterinary Services, Odisha, inviting bids from the intending supplier. The said tender was floated with an avowed object of providing veterinary services to various livestock farmers within the State so that the sector would benefit. One of the clauses was projected by the petitioner to be arbitrary, discriminatory and eroding the concept of a level playing field. Clause 5.2.8 of the tender call notice was assailed in the writ petition.

It was stated in Clause 5.2.8 that the Bidder must have 3 years’ experience in supplying Veterinary medicines and vaccines of its own manufacturing or reputed manufacturers of National level to Central & State Government/semi Govt. organizations, PSUs, with annual average worth of Rs 4.5 Cr or more in any 3 financial years during 2019-20, 2020-21, 2021-22, 2022-23 & 2023-24. The Bidders were required to submit the proof of supply. The Odisha SMEs were fully exempted from the past work experience criteria as per the MSME Deptt. Notification.

Reasoning

On a perusal of the clause in question, the Bench stated the same related to the experience of the bidder in supplying the veterinary medicines and vaccines manufactured by the reputed companies of a national level to the Central & State Government/semi Government Organizations, PSUs with an annual average worth of Rs.4.5 crore or more in any three financial years and the documents in support thereof shall be submitted by such bidder.

The Bench stated, “The arbitrariness and reasonableness in fixing a condition in the tender document is to be tested on the anvil of nexus with the object and purpose and in the event the Court finds such conditions having no connection therewith and perceived to avoid the fair and transparent competition, the interference becomes inevitable.”

Reference was made to a judgment of the coordinate Bench in M/s. Winners Pharma, Cuttack Vs. State of Odisha and another (2025) wherein clause 5.2.8 was assailed. The Division Bench dismissed the writ petition after having found the said clause to be reasonable, rational and nondiscriminatory. As per the Bench, when the same clause was assailed in an earlier judgment and the Court declined to interfere therewith, it led to an inevitable conclusion that the Court did not find such clause offending the core fabric of Article 14 of the Constitution.

The Bench thus stated that the judgment of the earlier coordinate Bench had a binding effect on the latter coordinate Bench. Thus, finding no ground warranting interference with the said clause, the Bench dismissed the Petition.

Cause Title: Biswajit Rath v. State of Odisha (Case No.:W.P.(C) No.1413 of 2025)

Appearance

Petitioner: Advocate Saswati Mohapatra

Respondent: Advocate General Pitambar Acharya, AGA Debasish Tripathy, ASC A. Dash

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Orissa High CourtChief Justice Harish TandonJustice M.S. Raman

Tulip Kanth

Assistant Editor

Tulip Kanth is an Assistant Editor at Verdictum having over 5 years of experience in the field of legal journalism and editing. She extensively covers judgments of the Supreme Court, High Courts as well as Tribunals. She has previously worked with a legal publishing website where she oversaw the work of other editors and has also created updates on notifications of different Government Ministries. She holds an English Honours Degree from SGTB Khalsa College, Delhi University and has completed her LLB course with specialisation in Corporate Law from Amity University.