The Jammu & Kashmir High Court has annulled the tender process conducted by the Jammu and Kashmir Medical Supplies Corporation Ltd. (JKMSCL) for the procurement of suture materials. The court found “clear arbitrariness, procedural violations, and institutional favouritism” in awarding contracts to long-time vendors Johnson & Johnson and SR Technomed.
Justice Moksha Khajuria Kazmi held that the contracts were awarded without proper evaluation of samples or adherence to the stipulated two-bid system (technical and financial). The court observed that the technical evaluation was a mere formality, carried out without testing the products of many eligible bidders, including the petitioner, Healthium Medtech Ltd., a reputed Indian medical device manufacturer.
“The purpose of calling for the samples was a mere eye wash and a sham intended to conceal the arbitrariness and favouritism shown by respondents No. 2 to 4,” the Court remarked.
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The court noted that Healthium’s sealed financial bid had significantly lower rates compared to the selected vendors. However, its samples were not even invited for evaluation. Despite having a proven record and being technically qualified, the petitioner was excluded from financial consideration.
The judgment further highlighted that JKMSCL had not formed the technical committee as per procurement rules. Instead, reliance was placed on the past performance of the selected vendors — Johnson & Johnson, a 30-year supplier, and SR Technomed, previously disqualified in a 2010 litigation.
“The Government is allowing only one horse to win the race... permitting others only to participate, but not to compete or win,” the Court stated.
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The court emphasized that such monopolistic practices, supported by state action, harm public interest and violate the principles of transparency and fair competition. It noted that the same two companies were repeatedly favored since 1999, effectively barring competition.
Additionally, JKMSCL failed to follow the Standard Procurement Procedure (SPP), which mandates sample collection, expert evaluations, and communication of objections and responses. The corporation admitted to having almost no suture stock in warehouses and had not placed supply orders despite issuing Letters of Intent in November 2024.
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In light of the above findings, the High Court:
- Quashed the Minutes of Meeting dated 02.09.2024.
- Set aside all decisions including rejection of bids, financial bid openings, and rate contracts awarded to Johnson & Johnson and SR Technomed.
- Ordered a fresh tendering process.
- Directed that sample evaluations be conducted by end-user experts and submitted to competent authorities.
- Allowed interim procurement through transparent means to address shortages.
“Monopoly is the inevitable end of competition... The domination of a single entity for decades stifles innovation and harms the public exchequer,” the Court observed.
The petitioner had earlier fulfilled similar contracts across India and operates multiple USFDA-certified manufacturing units. It alleged that repeated extensions of tender deadlines were tailored to benefit select vendors. The court agreed, finding the bidding process tainted by favoritism and a lack of genuine technical scrutiny.
Case Title: Healthium Medtech Ltd. Vs UT of Jammu and Kashmir and others, 2025
