Case Note & Summary
The petitioner, M/s. Siddhanath Construction, a proprietorship firm, challenged tender condition no. 10 in an e-tender issued by the Sangola Municipal Council for the construction of an administrative building. Condition no. 10 required bidders to be registered under the Maharashtra Sales Tax Act, 1956 for works contract. The petitioner argued that this condition was ultra vires the Standard Bidding Document issued by the Public Works Department, which did not contain such a requirement. The court examined the Standard Bidding Document and found that it only required registration under the Maharashtra Value Added Tax Act, 2002 and the Professional Tax Act, 1975, not the Sales Tax Act for works contract. The court held that condition no. 10 was beyond the scope of the governing document and therefore invalid. The court allowed the petition, directing the respondent to delete condition no. 10 and proceed with the tender process without it. The court also noted that the petitioner had already submitted its bid and that the tender process was ongoing.
Headnote
A) Constitutional Law - Judicial Review of Tender Conditions - Ultra Vires Condition - Condition No. 10 of e-tender requiring registration under Maharashtra Sales Tax Act, 1956 for works contract - The court held that the condition is ultra vires the Standard Bidding Document issued by the Public Works Department, which does not mandate such registration for eligibility. The condition imposes an additional, unwarranted eligibility criterion that is not found in the parent tender document, thereby violating the principle that tender conditions must be within the scope of the governing document. (Paras 1-10) B) Contract Law - Tender Process - Standard Bidding Document - Scope and Binding Nature - The Standard Bidding Document issued by the Public Works Department is the governing document for tenders. Any condition not found therein cannot be imposed by the tendering authority. The court directed the respondent to delete condition no. 10 and proceed with the tender process without it. (Paras 5-10) C) Taxation - Maharashtra Sales Tax Act, 1956 - Registration for Works Contract - Not a Mandatory Eligibility Criterion for Tenders - The requirement of registration under the Maharashtra Sales Tax Act for works contract is a statutory obligation for tax purposes, but it cannot be used as an additional eligibility condition in a tender process unless specifically provided in the Standard Bidding Document. (Paras 6-8)
Issue of Consideration
Whether tender condition no. 10 requiring registration under the Maharashtra Sales Tax Act, 1956 for works contract is valid and within the scope of the Standard Bidding Document issued by the Public Works Department.
Final Decision
The court allowed the petition, quashed condition no. 10 of the e-tender, and directed the respondent to proceed with the tender process without that condition.
Law Points
- Tender condition must be within the scope of the parent tender document
- cannot impose additional eligibility criteria beyond the Standard Bidding Document
- Article 226 jurisdiction for judicial review of tender conditions
- Maharashtra Sales Tax Act registration requirement for works contract not mandatory for tender eligibility
