Case Note & Summary
The petitioner, M/s. S.K. Mehta and Company, a company engaged in road construction and maintenance, filed a writ petition before the Bombay High Court (Nagpur Bench) seeking extension of the date for submission of tender forms for a project involving asphalting treatment to main roads A and B in Nagpur (Butibori) Industrial Area. The petitioner prayed for at least one month's extension to fairly compete in the bid and for an opportunity to raise queries on new conditions imposed by the respondent, Maharashtra Industrial Development Corporation. The petition was filed on 18 July 2013, one day before the scheduled submission date of 19 July 2013. The respondent had initially invited tenders with certain terms, but on 9 July 2013, it modified the conditions by reducing the contract period from 12 months to 6 months and increasing the annual turnover requirement from 2019 lakhs to 4000 lakhs, along with a requirement of audited turnover figures for three consecutive years from 2009 to 2013. The petitioner contended that no opportunity was given to raise queries on these additional conditions. The court held that the respondent authority is within its exclusive domain to decide tender terms and conditions, and no one else can dictate them. The court noted that the last date for receiving queries was 4 July 2013, and replies were uploaded on 8 July 2013. The modification was made on 9 July 2013, and the last date for filing tenders was 19 July 2013. The court observed that it is difficult to consider the reason for modification at this stage, and such modifications are possible considering the facts and circumstances to expedite proceedings and invite genuine tenderers. The court found no reason to disturb the declared date and dismissed the petition, stating that the terms cannot be stated to be arbitrary or mala fide. The court also noted that the petition was filed at the last moment, and no interim relief was granted.
Headnote
A) Tender Law - Exclusive Domain of Tender Inviting Authority - Terms and Conditions - The respondent authority is within its exclusive domain to invite tenders based on terms and conditions it decides to circulate; no one else can dictate terms of any commercial contract/tender. (Para 3) B) Tender Law - Modification of Tender Conditions - Reasonableness - The authority modified conditions by curtailing the period from 12 months to 6 months and increasing annual turnover from 2019 lakhs to 4000 lakhs with additional requirement of audited figures for three years. Such modification cannot be stated to be arbitrary or mala fide. (Para 5) C) Tender Law - Judicial Review - Scope - Courts should not interfere with tender process unless there is arbitrariness, mala fides, or violation of statutory provisions. The petitioner's grievance about lack of opportunity to raise queries on modified conditions is no reason to disturb the declared date. (Para 5)
Issue of Consideration
Whether the court can interfere with the tender process and extend the date of submission of tender forms at the instance of a bidder who seeks more time to comply with modified conditions.
Final Decision
The petition is dismissed. No order as to costs. Rule discharged.
Law Points
- Tender inviting authority has exclusive domain to decide terms and conditions
- Courts should not interfere with commercial contracts
- No right to dictate tender terms
- Modification of tender conditions is permissible if reasonable
