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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH
ANIL S.KILOR, RAJNISH R.VYAS
SMS Limited – Appellant
Versus
Western Coalfields Limited – Respondent
| Table of Content |
|---|
| 1. tender process and price quoting rules. (Para 1 , 3 , 11) |
| 2. arguments regarding gst inclusion. (Para 4 , 5 , 6 , 7 , 8 , 9) |
| 3. interpretation of tender documents. (Para 10 , 15 , 16) |
| 4. judicial review standards for tender decisions. (Para 19 , 20) |
| 5. decision to allow the petition. (Para 21) |
JUDGMENT :
RAJNISH R. VYAS, J.
1. Heard.
2. Rule. Rule made returnable forthwith. Heard finally by consent of the parties.
3. Heard Mr. M.G. Bhangde, learned Senior Advocate a/b Mr. Adarsh Baheti, Advocate for the petitioners and Mr. Anand Jaiswal, learned Senior Advocate a/b Mr. Nachiket Moharir, Advocate for respondents. Matter was closed for orders on 8th of September 2025. On 16th September 2025, petitioner filed written note on the pursis by the respondents, pointing out certain decisions of Honourable Apex Court. According to Mr Bhangde, learned Senior Counsel for the applicant, the terms and conditions of the tender documents are crystal clear which shows that the tender was excluding GST. He has invited our attention to various terms and conditions and argued the matter at length. It is contended by the petitioner that in response to the notice inviting tender, in all 5 bidd
The court ruled that tender documents clearly required prices quoted to exclude Goods and Services Tax (GST), affirming that ambiguity in contractual terms did not exist.
Point of law : Since the terms “except goods and service tax” was specified in Clause 3.3.3 of Ext.P1, the petitioner could only have quoted the bid amount, without including the GST.
A contractor cannot claim GST over and above the quoted rate when the contract explicitly states that the rate is inclusive of GST.
Judicial review in tender matters requires restraint, emphasizing compliance with the tendering authority’s interpretation unless clear evidence of wrongfulness is established.
The rejection of the lowest bid based on unjustified TDS deductions violates tender conditions and principles of fairness under Article 14.
The main legal principle established is the authority of the Tendering Authority to waive non-essential tender conditions and the requirement for rational decision-making in such matters.
A contractor is entitled to GST payments on completed works, as tender rates must be exclusive of GST per government circulars.
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