ICHOR Biologics Private Limited vs The State Of West Bengal & Ors.

Krishna Rao, J.:

The petitioner has filed the present writ petition challenging the communication dated 30^th July, 2026 wherein and where under the technical bid of the petitioner was rejected. On 19^th May, 2026, the respondents have published a Notice Inviting e-Tender for collecting excess/surplus available screened of Fresh Frozen Plasma (FFP) from different BCSU (Blood Component Separation Unit) attached to the State Government Blood Centres across the West Bengal Initially for a period of 1 (one) year and may be extended for a further period of 1 (one) year under same terms & conditions subject to satisfactory performance.

The petitioner has participated in the said tender process. On 22^nd June, 2026, the Tender Committee opened the bids for technical evaluation in presence of the representative of the petitioner and other bidders. On 1^st July, 2026, the tendering authority requested the petitioner to provide attested copy of the license for manufacturing blood products, Income Tax Returns for the year 2024-25 and the PAN of the petitioner. On 3^rd July, 2026, the petitioner has submitted the required documents to the tendering authority.

On 24^th July, 2026, the technical bid of the petitioner was rejected with the remark “Not Qualified Technically”. The petitioner has made representation on 28^th July, 2026, to the respondents requesting the respondents the reasons for the technical disqualification and also requested for opportunity of personal hearing before the Technical Bid Evaluation Committee. In spite of several requests made by the petitioner, the respondent authorities have neither informed the petitioner about the reasons for rejection of the technical bid of the petitioner nor any opportunity of hearing was provided to the petitioner, the petitioner has filed the present writ petition.

Mr. Jaydip Kar, Learned Senior Advocate, representing the petitioner submits that the license to manufacture and store blood products for sale or distribution was issued to the petitioner by the competent authority on 1^st April, 2021 which was valid up to 31^st March, 2026. On 10^th November, 2025, the petitioner has submitted an application to the Director, Drugs Control Administration for renewal of Manufacturing license of the petitioner under Form-28-E.

On 24^th April, 2026, the Drugs Control Administration, Government of Telangana, renewed the license of the petitioner with effect from 1^st April, 2026 to 31^st March, 2031 by issuing License Retention Certificate. On 22^nd June, 2026, the Licensing Authority has issued Certificate of renewal of license to Manufacture of Blood Products under FORM26-I. The petitioner has participated in the tender process with the said certificate of renewal issued under Form26-I.

The respondent authorities have filed report and in the said report, the reason for disqualification of the petitioner in the technical bid was disclosed. As per report filed by the respondent authorities, the manufacturing license which the petitioner has submitted along with other tender documents, the manufacturing license is not duly endorsed by the Drug Controller General of India (hereinafter referred to as “DCGI”) which is an essential requirement.

Mr. Kar submits that as per Rule 122H of the Drugs Rules, 1945, once the original license is renewed either in Form 26-G or in Form 26-I shall be valid for a period of five years on and from the date on which it is granted or renewed unless it is suspended or cancelled. He submits that as on date of opening of technical bid of the petitioner, the petitioner had the valid license but the respondent authorities have disqualified the petitioner in the technical bid only on the ground that the license of the petitioner is not endorsed by the Drug Controller General of India which is not the requirement.

Mr. Kar submits that the Licensing Authority by a letter dated 22^nd June, 2026, forwarded the approval for the Renewal License in Form 26-I (Form 28-E) in triplicate with endorsement of State Licensing Authority for approval of Central Licensing Approving Authority and requested the Drug Controller General of India to return the same in duplicate after approval for taking necessary action.

Mr. Kar submits that Licensing authority defined under Rule 21(b) of the Drugs Rules, 1945 and the said Licensing Authority has granted license to the petitioner which is valid from 1^st April, 2026 to 31^st March, 2031 but the respondents have not considered the said license of the petitioner and arbitrarily rejected the technical bid of the petitioner.

Mr. Kar relied upon Rule 122F of the Drugs Rules, 1945 and submits in 2^nd proviso of the said Rule provides that the licensee holding a license in Form 28-C, Form-28-E or Form 28-F as the case may be, for operation of [Blood Centre]/ processing of whole human blood for components/ manufacture of blood products/collection, processing, testing, storage, banking and release of umbilical cord blood stem cells shall apply for grant of license under sub-rule (1) before the expiry of the said license on Form 27-C, Form 27-E or Form 27-F as the case may be, and he shall continue to operate the same till the orders on his application are communicated to him. He submits that the licensing authority has renewed the license of the petitioner with effect from 1^st April, 2026 and is valid till 31^st March, 2026 but the respondent authorities have rejected the technical bid of the petitioner.

Mr. Kar further relied upon Rule 122-I and submits that before renewal of the license of the petitioner, the licensing authority inspected the premises of the petitioner, verified appliances/ equipments, test facilities and professional qualification of the expert staffs and other technical staffs employed by the petitioner and thereafter renewed the license of the petitioner but the respondent authorities have not relied upon the license issued by the competent authority upon completion of all formalities.

Learned Advocate General appearing for the State submits that as per the Eligibility Criteria of the tender notice, any firm/ company should have a valid license for manufacturing plasma derived products. The firm should furnish attested photocopy of License for manufacturing plasma derived products approved by the Licensing Authority. He submits that the petitioner has submitted license issued by the Licensing Authority but is not approved by the Central License Approving Authority. He submits that it is admitted by the petitioner that after renewal of license of the petitioner by the Licensing Authority, the same was forwarded to Drug Controller General, India for approval but till date the Central License Approving Authority has not approved the license of the petitioner.

Learned Advocate General submits that the previous license was issued and relied by the petitioner which was issued on 20^th May, 2021 and was valid from 1^st April, 2021 to 31^st March, 2026 in the said license, other than the signature and seal of the Licensing Authority, there is an endorsement by the Central License Approving Authority but in the present tender process, the license which the petitioner has relied upon, there is no endorsement of the Central license Approving Authority.

Learned Advocate General submits that the petitioner has submitted certificate issued by the Licensing Authority dated 22^nd June, 2026, without any seal and signature of the Central License Approving Authority. The Licensing Authority by a letter dated 22^nd June, 2026, forwarded the approval of Renewal License in Form 26-I in triplicate with endorsement of the State Licensing Authority for approval of the Central License Approving Authority with the request to return the same in duplicate after approval for taking necessary action at the end of the Licensing Authority which itself proves that the license which the petitioner has relied upon is not approved by the Central License Approving Authority. He submits that at this stage on the basis of the Renewal License issued by the Licensing Authority without approval of the Central License Approving Authority, the tender is accepted and work order, if any, is issued to the petitioner and if the Central License Approving Authority later not approved the renewed license issued by the Licensing Authority, the tender process initiated by the respondent authorities would become redundant.

The issue involved in the present writ petition whether without the approval of the Central License Approving Authority of the license issued by the Licensing Authority, the respondents can accept the said license issued by the Licensing Authority for allowing the petitioner to participate in the financial bid.

Clause 4(a) of the eligibility criteria of the tender documents reads as follows:

The petitioner had the License to Manufacture and Store Blood Products for Sale or Distribution issued by the Licensing Authority duly approved by the Central License Approving Authority dated 20^th May, 2021 and was valid from 1^st April, 2021 to 31^st March, 2026. On 10^th November, 2025, the petitioner has applied for renewal of the license of the petitioner before the Drugs Control Authority. The Licensing Authority renewed the license of the petitioner under FORM 26-I dated 22^nd June, 2026 which is as follows:

Admittedly, the renewed license relied by the petitioner under FORM 26-I is issued by the Licensing authority is not approved by the Central License Approving Authority and is pending before the Approving Authority. While providing the renewed License under FORM 26-I to the petitioner, the Licensing Authority has forwarded the same to the Drugs Controller General (I) for approval of the Renewal License in FORM 26-I.

Rule 68 of the Drugs Rules, 1945, provides for Grant of License by the Central License Approving Authority which reads as follows:

As per the Rule 68A, the Central Licence Approving Authority is the decision taking authority for grant or rejects the application for grant of licence.

Rule 81 provides for Procedure of Licensing Authority. As per the said provision also if the Licensing Authority or Central Licence Approving Authority after receipt of report of Inspector, they may cause further enquiry, if any, and is satisfied that the requirements of the Rule is complied with and the condition of the licence and the rules will be observed, he shall issue licence. If the Licensing Authority or Central Licence Approving Authority is not satisfied he shall reject the application and shall inform the applicant of the reasons for such rejection.

Rule 122F of the Drugs Rules, 1945 reads as follows:

In the present case, the licence issued to the petitioner to manufacture and store blood products for sale or distribution dated 20^th May, 2021 was effective from 1^st April, 2021 to 31^st March, 2026. On 10^th November, 2025, the petitioner has applied before the Drugs Control Authority for renewal of licence. The Licensing Authority by a letter dated 22^nd June, 2026, forwarded the Renewal Licence in Form 26-I (Form 28-E) in triplicate with endorsement of the State Licensing Authority for the approval of the Central Licence Approving Authority. The copy of Renewal Licence in Form 26-I was also provided to the petitioner. Till date, the Central Licence Approving Authority has not taken any decision whether the Renewal Licence forwarded by the State Licensing Authority in Form 26-I is approved by the Central Licence Approving Authority or not.

The petitioner has participated in the tender process by disclosing the Renewal Licence issued by the State Licensing Authority under Form 26-I but the Central Licence Approving Authority has not approved the same and thus, this Court did not find any illegality in rejecting the technical bid of the petitioner as the Renewal Licence relied by the petitioner is not approved by the Central Licence Approving Authority.

In view of the above, WPA No. 20748 of 2026 is thus dismissed.

Parties shall be entitled to act on the basis of a server copy of the Judgment placed on the official website of the Court.

Urgent Xerox certified photocopies of this judgment, if applied for, be given to the parties upon compliance of the requisite formalities.