In Brief
The State of Orissa challenged a High Court order striking down a tender eligibility clause requiring pharmaceutical manufacturers to have a 10-crore annual turnover. The State argued the condition was reasonable and not arbitrary. The respondent (small-scale manufacturers) contended it was discriminatory and violated industrial policy. The Supreme Court allowed the appeal but remitted the case for fresh examination, holding that the High Court had not adequately considered whether the policy was empirically justified or whether reserving 269 drugs for large units while allocating only 20 to small units violated small-scale manufacturers' rights. The Court emphasized that tender conditions require scrutiny based on evidence, not mere assumptions."
The lawyer headnote and full judgment text are available to registered users.