Prakash C. v. State of Kerala & Others

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE THE CHIEF JUSTICE MR.S.MANIKUMAR** ## **&** **THE HONOURABLE MR. JUSTICE SHAJI P.CHALY** **FRIDAY, THE 15TH DAY OF JANUARY 2021 / 25TH POUSHA, 1942** **WP(C).No.4756 OF 2017(S)** ## **PETITIONER:** **PRAKASH.C, AGED 55 YEARS, S/O. DR. RAGHAVAN (LATE) ADVOCATE RESIDING AT VARANGODE, MALAPPURAM.** **BY ADVS. SRI.K.T.SIDHIQ SRI.LIJIN THAMBAN** ## **RESPONDENTS:** - **1 STATE OF KERALA, REPRESENTED BY THE SECRETARY FOR GOVERNMENT OF KERALA, DEPARTMENT OF HEALTH, GOVERNMENT SECRETARIAT, TRIVANDRUM 695 001** - **2 ADDITIONAL CHIEF SECRETARY FOR DEPARTMENT OF HEALTH AND FAMILY, WELFARTE GOVERNMENT SECRETARIAT, TRIVANDRUM 695 001** - **3 KERALA MEDICAL SERVICE CORPORATION REPRESENTED BY IT'S CHAIRMAN, DEPARTMENT OF HEALTH AND FAMILY WELFARE, GOVERNMENT OF KERALA, THYCAUD P.O, TRIVANDRUM 14** - **4 KERALA STATE DRUGS AND PHARMACEUTICALS LTD. REPRESENTED BY ITS MANAGING DIRECTOR, KALAVOOR P.O, ALAPPUZHA, KERALA STATE, INDIA, PIN 688 522** **R1 & R2 BY SRI.K.V.SOHAN, STATE ATTORNEY R3 BY SRI.M.AJAY, SC, KERALA MEDICAL SERV.CORPN R4 BY SHRI.P.C.SASIDHARAN, SC, KERALA STATE DRUGS AND PHARMACEUTICALS LIMITED** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15.01.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WP(C).No.4756 OF 2017(S) :: 2 :: ## JUDGMENT Dated this the 15[th] day of January 2021 ## S.MANIKUMAR, C.J. Instant public interest litigation is filed seeking for a direction to respondents 1 to 3 herein/the Secretary to Government, Department of Health; the Additional Chief Secretary, Department of Health and Family Welfare and the Chairman, Kerala Medical Service Corporation respectively, to purchase medicines for their requirement from the 4[th] respondent/ Kerala State Drugs and Pharmaceuticals Limited. Another prayer sought for in this writ petition is for a direction to the second respondent to not to purchase medicines, from private companies or agencies, which are available with the 4[th] respondent/Kerala State Drugs and Pharmaceuticals Limited. 2. On the above prayer and statement of facts, Mr.K.T.Sidhique, learned counsel for the petitioner submitted that the Kerala Medical Service Corporation/3[rd] respondent is a public sector undertaking and since its inception in 1974, it has been manufacturing and supplying essential and life-saving medicines to cater the needs of the patients resorting to Government Hospitals in the State of Kerala. The 4[th] respondent/Kerala WP(C).No.4756 OF 2017(S) :: 3 :: State Drugs and Pharmaceuticals Limited is a major supplier of quality drugs to Kerala State Medical Service Corporation/3[rd] respondent herein. He also stated that even though the 4[th] respondent has the capacity and facility to provide 50 to 100% of the medicines required for the 3[rd] respondent, 93% of the medicines have been outsourced by the 3[rd] respondent from other private companies at a heavy rate and it is to be noted that those medicines do not have any guarantee of quality. Relying on the newspaper reports, learned counsel for the petitioner further submitted that drugs supplied by various companies to the third respondent were found to be very poor in quality. Moreover, the 4[th] respondent is on the brink of closure following mounting debts and acute neglect from the State Government. 3. Another contention raised by learned counsel for the petitioner is that due to acute neglect of the State Government, the third respondent and the fourth respondent, even though public sector companies under the Government of Kerala, are gasping for survival with an outstanding debt of Rs.18 crore and several other liabilities. With the capacity to produce medicines worth Rs.100 crore, the company workers end up sitting idle after producing their stock for a few months. The 4[th] respondent which can WP(C).No.4756 OF 2017(S) :: 4 :: produce up to 50-100% of the demand for medicines from the Government hospitals is unable to survive in the current scenario forcing it to approach other states. 4. The next contention raised is that even though the 4[th] respondent has all the infrastructure and functionaries to produce medicines at a very low cost, the 3[rd] respondent is outsourcing the medicines from outside that are more expensive and that the state exchequer is being utilized for the benefit of private companies. The products of the 4[th] respondent company have GMP certification ensuring acceptance in every market. Despite having a well infrastructured indigenous establishment, the attitude of the respondents 1 to 3 in neglecting the products of 4[th] respondent warrants interference of this Honourable court. Hence, this Public Interest Litigation is filed with the following prayers: “i. issue a writ of mandamus or any other appropriate writ directing the respondents 1 to 3 to purchase medicines for their requirement from the 4[th] respondent. ii. issue a writ of mandamus or any other appropriate writ directing the second respondent not to purchase medicines from the private companies or agencies which are available with the 4[th] respondent.” WP(C).No.4756 OF 2017(S) :: 5 :: 5. Heard learned counsel for the parties and perused the materials available on record. 6. Perusal of the material on record discloses that the allegations raised in this writ petition are based on newspaper reports. First of all, writ petition based on mere newspaper reports is not maintainable. On the above aspect, let us consider the following decisions: (i) In **Laxmi Raj Shetty and Ors. v. State of Tamil Nadu** [(1988) 3 SCC 319], the Hon'ble Supreme Court held thus: “32...............We cannot take judicial notice of the facts stated in a news item being in the nature of hearsay secondary evidence, unless proved by evidence aliened. A report in a newspaper is only hearsay evidence. A newspaper is not one of the documents referred to in Section 78(2) of the Evidence Act, 1872 by which an allegation of fact can be proved. The presumption of genuineness attached under Section 81 of the Evidence Act to a newspaper report cannot be treated as proved of the facts reported therein. 33. It is now well-settled that a statement of fact contained in a is and therefore newspapers merely hearsay inadmissible in evidence in the absence of the maker of the statement appearing in Court and deposing to have perceived the fact reported. The accused should have therefore produced the persons in whose presence the seizure of the stolen money from appellant No. 2's house at was effected or examined the Mangalore press correspondents in proof of the truth of the contents of the news item. The question as to the admissibility of newspaper reports has been dealt with by this Court in WP(C).No.4756 OF 2017(S) :: 6 :: **Samant N. Balakrishna v. George Femandez and Ors.** [1969] 3 SCR 603. There the question arose whether Shri George Femandez, the successful candidate returned to Parliament from the Bombay South Parliamentary Constituency had delivered a speech at Shivaji Park attributed to him as reported in the Maratha, a widely circulated Marathi newspaper in Bombay, and it was said: “A newspaper report without any further proof of what had actually happened through witnesses is of no value. It is at best a second-hand secondary evidence. It is well known that reporters collect information and pass it on to the editor who edits the news item and then publishes it. In this process the truth might get perverted or garbled. Such news items cannot be said to prove themselves although they may be taken into account with other evidence if the other evidence is forcible.” ## (ii) In **Vikas Vashishth v. Allahabad High Court** reported in (2004) 13 SCC 485, the Hon'ble Supreme Court held as follows: "At the very outset, we put it to the petitioner that a bare perusal of the petition shows that it is based entirely on newspaper reports and asked him whether before filing the petition he has taken care to verify the facts personally. His answer is in the negative. In the writ petition all the 21 High Courts have been included as respondents and Union of India has also been impleaded as the 22nd respondent. We asked the petitioner what has provoked him to implead all the High Courts as respondents and he states that it is his apprehension that similar incidents may occur in other High Courts though there is no factual foundation for such appreciation. 5. After affording the full opportunity of hearing, we are satisfied that what purports to have been filed as a public WP(C).No.4756 OF 2017(S) :: 7 :: interest litigation is nothing more than a "publicity interest litigation". It is writ large that it has been filed without any effort at verifying the facts by the petitioner personally." (iii) In **Rohit Pandey v. Union of India** reported in 2005 (13) SCC 702, Hon'ble Apex Court held as follows: "1. This petition purporting to be in public interest has been filed by a member of the legal fraternity seeking directions against the respondents to hand over the investigation of the case pertaining to recovery of light machine gun, which is said to have been stolen from the army according to reports published in two newspapers, to the Central Bureau of Investigation for fair investigation to ensure that the real culprits who are behind such theft of army arms and ammunition endangering the integrity and sovereignty of the country may be brought to book and action may be taken against them in accordance with law. The only basis for the petitioner coming to this Court are two newspaper reports dated 25-1-2004, and the other dated 12-2-2004. This petition was immediately filed on 16-2-2004 after the aforesaid second newspaper report appeared. On enquiry from the learned counsel, we have learnt that the petitioner is a young advocate having been in practice for a year or two. The Union of India, the State of Uttar Pradesh and the Chief Minister of the State of Uttar Pradesh, have been arrayed as party respondents. In the newspaper reports, there is no allegation either against the Union of India or against the Chief Minister. 2. We expect that when such a petition is filed in public interest and particularly by a member of the legal profession, it would be filed with all seriousness and after doing the necessary homework and enquiry. If the petitioner is so public-spirited at such a young age as is so professed, the least one would expect is that an enquiry would be made from the authorities concerned as to the WP(C).No.4756 OF 2017(S) :: 8 :: nature of investigation which may be going on before filing a petition that the investigation be conducted by the Central Bureau of Investigation. Admittedly, no such measures were taken by the petitioner. There is nothing in the petition as to what, in fact, prompted the petitioner to approach this Court within two-three days of the second publication dated 12-2-2004, in the newspaper Amar Ujala. Further, the State of Uttar Pradesh had filed its affidavit a year earlier i.e. on 7-10-2004, placing on record the steps taken against the accused persons, including the submission of the chargesheet before the appropriate court. Despite one year having elapsed after the filing of the affidavit by the Special Secretary to the Home Department of the Government of Uttar Pradesh, nothing seems to have been done by the petitioner. The petitioner has not even controverted what is stated in the affidavit. Ordinarily, we would have dismissed such a misconceived petition with exemplary costs but considering that the petitioner is a young advocate, we feel that the ends of justice would be met and the necessary message conveyed if a token cost of rupees one thousand is imposed on the petitioner " (iv) In **Holicow Pictures Pvt. Ltd. v. Prem Chandra Mishra and Ors.** [(2007) 14 SCC 281], the Hon'ble Supreme Court held thus: “18. Courts must do justice by promotion of good faith, and prevent law from crafty invasions. Courts must maintain the social balance by interfering where necessary for the sake of justice and refuse to interfere where it is against the social interest and public good. (See **State of Maharashtra v. Prabhu** (1995) ILLJ 622 SC, and **Andhra Pradesh State Financial Corporation v. GAR Re-Rolling Mills and Anr.** [1994] 1 SCR 857. No litigant has a right to unlimited draught on the Court time and public money in order to get his affairs settled in the manner as he wishes. Easy access to justice should not be misused as a licence to file WP(C).No.4756 OF 2017(S) :: 9 :: misconceived and frivolous petitions. [See **Dr. B.K. Subbarao v. Mr. K. Parasaran** (1996 CriLJ 3983)]. Today people rush to Courts to file cases in profusion under this attractive name of public interest. They must inspire confidence in Courts and among the public. 19. As noted supra, a time has come to weed out the petitions, which though titled as public interest litigations are in essence something else. It is shocking to note that Courts are flooded with large number of so called public interest litigations where even a minuscule percentage can legitimately be called as public interest litigations. Though the parameters of public interest litigation have been indicated by this Court in large number of cases, yet unmindful of the real intentions and objectives, Courts are entertaining such petitions and wasting valuable judicial time which, as noted above, could be otherwise utilized for disposal of genuine cases. It is also noticed that petitions are based on newspaper reports without any attempt to verify their authenticity. As observed by this Court in several cases newspaper reports do not constitute evidence. A petition based on unconfirmed news reports, without verifying their authenticity should not normally be entertained. As noted above, such petitions do not provide any basis for verifying the correctness of statements made and information given in the petition. It would be desirable for the Courts to filter out the frivolous petitions and dismiss them with costs as afore-stated so that the message goes in the right direction that petitions filed with oblique motive do not have the approval of the Courts.” 7. The Deputy Secretary, Health and Family Welfare Department, Government Secretariat, Thiruvananthapuram, has filed a detailed counter affidavit on behalf of respondents 1 and 2 wherein, it is stated that the 4[th] WP(C).No.4756 OF 2017(S) :: 10 :: respondent being a Public Sector undertaking, respondents 1 to 3 will make every endeavour to support the 4[th] respondent in the matter of procuring medicines required for the supply to Government Institutions. But it is for the 4[th] respondent to obtain necessary licenses and raise up to the occasion to meet the requirement of Respondents 1 to 3. Relevant portions of the counter affidavit are extracted: “4. Tender for the year 2017-2018 was invited by the 3[rd] Respondent for the supply of drugs and medical consumables from Licensed Manufacturers. True copy of the relevant pages of the bid document inviting tenders for supply of drugs and medical consumables for the year 2017-2018 is produced herewith and marked as Exhibit R1(a). 5. The 4[th] Respondent submitted tenders only for 43 items out of the total 590 items of drugs. True copy of the list of items quoted by 4[th] respondent is produced herewith and marked as Exhibit R1(b). 6. In the Joint meeting of the Managing Director for 3[rd] Respondent and 2[nd] Respondent in the capacity as Chairman of the 3[rd] Respondent, considered the tender submitted by the 4[th] Respondent and came to the conclusion that out of the 43 Drugs tendered by 4[th] Respondent it has Manufacturing License only for 26 items. So it was resolved to place Purchase Orders for 23 items for the offered quantity or 40% of the tendered volume whichever is less. True copy of the minutes of the meeting dated 15.02.2017 is produced herewith and marked as Exhibit R1(c). 7. So there is no basis for seeking a direction to purchase the entire medicines from 4[th] Respondent which has no capacity to supply the required quantity and has also no license to produce the required medicines. It is for the 4[th] respondent to WP(C).No.4756 OF 2017(S) :: 11 :: improve its production capacity and obtain necessary licenses and participate in the tender being invited from time to time by the 3[rd] respondent. The 4[th] respondent being a Public Sector undertaking Respondents 1 to 3 will make every endeavour to support the 4[th] respondent in the matter of procuring medicines required for supply to Government Institutions. But it is for the 4[th] respondent to obtain necessary licenses and raise up to the occasion to meet the requirement of Respondents No. 1 to 3.” ## 8. Minutes in R1(c), relied on, is as follows: “Extract of 49[th] B.O.D. minutes of Kerala Medical Services Corporation held on 15.2.2017 ------------------------------------------------------------------------------------- ## Agenda Item No : 49.05 Procurement of Drugs for the year 2017-18 from Kerala State Drugs and Pharmaceuticals Ltd: ------------------------------------------------------------------------------------- 1. Kerala Medical Services Corporation Limited has invited e-tender for the procurement of drugs (Cat I&II) for the year 2017-18 on 18.11.16. The Technical Bids were opened on 17.12.2016 and evaluated. The price bids were opened on 29.01.2017 and the negotiated bid status were published 02.02.2017. M/s. Kerala State Drugs and Pharmaceuticals Ltd a State PSU, has also submitted bid in the above tender for 43 drugs. 2. In addition, M/s. KSDPL vide their letter dated 20.12.2016 has forwarded a list of 45 items that can be supplied to KMSCL for the year 2017-18. 3. The firm vide their letter dated 11.01.2017 has intimated the Corporation that KSDPL possess all mandatory documents to fulfill the statutory requirements of their offered drugs requested to earmark 60% of the tendered quantity of 2017-18 for all their offered items by relaxing the requirements of GMP and tender formalities based on G.O. No.154/2008/H&FWD dated 15.05.2008. WP(C).No.4756 OF 2017(S) :: 12 :: 4. KMSCL has verified the online bid submitted by M/s. KSDPL and noted that the mandatory licenses issued by the Drugs control department for manufacture (Product Permit) of the items quoted were not furnished. Hence the firm was requested vide letter dated 25.01.2017 to furnish the valid manufacturing license, Product Permits, GMP certificate and market standing certificate for further processing of their offer. 5. The reply received from Ms. KSDPL vide their letter dated 28.01.2017 is scrutinized and the following observations may be noted. A. KSDPL has submitted online bid for 43 drugs tender for the year 2017-18 while product license issued by the Drugs Controller is for the manufacturing of only 26 items. B. Out of the remaining 17 items; i. M/s. KSDPL has furnished copy of application dated 03.01.2017 forward to Drugs Controller for the grant of product permit for 13 drugs. ii. Neither approved product permits nor copy of any request for approval has been for submitted for the 4 items. 6. The Government vide order No.G.O.(MS)154/2008/H&FWD dated:15.5.2008 has directed the Corporation to reserve 35 items of drugs suggested by KSDPL for direct purchase without resorting to tender formalities and without insisting GMP certificate conditions, in relaxation to store purchase rules subject to actual requirement of KMSCL. Also as per the above Government order, the Government has constituted a committee for submitting the recommendations with regard to the quantity and the price of such medicines. The Minutes of the committee held on 17.05.2008 has decided that; a. KSDPL will endeavor to have its existence on self footing to come out of the protection policy over a period of 5 years. b. No products purchase from outside can be supplied to KMSCL through M/s KSDPL. WP(C).No.4756 OF 2017(S) :: 13 :: Hence the claim of the M/s. KSDPL that GMP requirement and other requirements in the tender is not applicable to them may not be accepted as such. 7. Vide letter No.KSDPL/MD/F.210/2017/066 dtd:18.01.2017 M/s. KSDPL has requested to give them advance of 50% of the value of orders as working capital to fund production operations. The advance can be proportionate to the value of orders for each month and the amount paid can be recovered against value of supplies each month. 8. In previous years, since 2013-14 the procurement of drugs from M/s Kerala State Drugs and Pharmaceuticals Ltd was made on the following strategy; a. The LOI placed to M/s KSDPL was for their offered quantity in tender or 30% tendered quantity whichever is less. b. The rate fixed to KSDPL was for the rate quoted by KSDPL in tender or LI+15% whichever is less. Resolution No.49.05 1. The Board resolved to authorize the Managing Director to place LOI & purchase orders for 26 items for which product license issued by the Drug Controller from KSDPL for their offered quantity or 40% of the tendered volume whichever is less. 2. The Board further resolved to authorize the Managing Director to purchase medicines from KSDPL at the rate quoted by KSDPL in tender or L1+15% whichever is less. 3. The Board further resolved to authorize the Managing Director to purchase 13 items from KSDPL once they attain the product permit from Drug Controller & product stability data limiting to the 25% tendered volume. 4. The Board further resolved to authorize the Managing Director to provide working capital to M/S KSDPL after getting the funds from Government & to source medicines against the same.” WP(C).No.4756 OF 2017(S) :: 14 :: 9. Thus on the facts, respondents 1 and 2 respectively have explained as to capacity of the fourth respondent to manufacture and supply to the needs, how they were constrained to go in for purchase from the private manufactures, etc. In the light of the decision, purely based on newspaper reports, dehorse the same, even on merits, the petitioner has not made out a case for issuing any directions as prayed for. 10. Considering the entire facts and circumstances of the case, we are of the view that the writ petition itself is not maintainable. Prayers sought for in this writ petition cannot be granted. Accordingly, writ petition is dismissed. **SD/S.MANIKUMAR CHIEF JUSTICE** **SD/SHAJI P. CHALY JUDGE** jes WP(C).No.4756 OF 2017(S) :: 15 :: ## APPENDIX ## PETITIONER'S EXHIBITS: - **EXHIBIT P1 TRUE COPY OF THE APPLICATION ILED BY THE PETITIONER DATED 5/12/2015 UNDER RIGHT TO INFORMATION ACT.** - **EXHIBIT P2 TRUE COPY OF THE INFORMATION PROVIDED BY THE 2ND RESPONDENT DATED 18/2/2015** - **EXHIBIT P3 THE APPLICATION FILED BY THE PETITIONER UNDER RTI ACT DATED 5-12-2015** - **EXHIBIT P4 TRUE COPY OF THE INFORMATION PROVIDED BY THE 3RD RESPONDENT DATED 04-01-2016** - **EXHIBIT P5 TRUE COPY OF APPLICATION FILED BY THE PETITIONER UNDER RTI ACT DATED 22-02-2016** - **EXHIBIT P6 TRUE COPY OF THE INFORMATION PROVIDED BY THE 2ND RESPONDENT DATED 24-03-2016** - **EXHIBIT P7 TRUE COPY OF THE REPORT PUBLISHED IN THE TIMES OF INDIA DAILY DATED 29-08-2016** ## **RESPONDENTS' EXHIBITS:** - **EXHIBIT R1(a) TRUE COPY OF THE RELEVANT PAGES OF THE BID DOCUMENT INVITING TENDERS FOR SUPPLY OF DRUGS AND MEDICAL CONSUMABLES FOR** - **EXHIBIT R1(b) TRUE COPY OF THE LIST OF ITEMS QUOTED BY 4TH RESPONDENT.** - **EXHIBIT R1(c) TRUE COPY OF THE MINUTES OF THE MEETING DATED 15.2.2017.** ## **// TRUE COPY //** **P.S. TO JUDGE**