Conditions of Contract  – After GST regime  –-- The petitioner was one of the bidders of the tender for appointment of an agency for implementation of a “Vehicle Tracking System and Passenger Information System” issued by  Maharashtra State Road Transport Corporation. The petitioner challenged the process and prayed that the award of the tender in favour of respondent no.2 vide letter dated 16 November 2017, be quashed and set aside, on the ground that the bid was not complying one of the tender conditions. The respondent contended that at the time of submission of the bids and at the time of closure of financial bids, the GST regime was not in force and the GST rates were unknown to the parties and thus the bids were based on the rates of indirect taxes like service taxes, VAT, Excise etc. The respondent conducted negotiations with the respondent no.2, so that the tax components of the amount quoted by them could be readjusted to suit the newly introduced GST rates. The court observed that there is nothing wrong in the approach of MSRTC in any manner unconscionable or arbitrary to accept the lowest bid of respondent no.2. MSRTC has acted in accordance with the tender conditions, and in view of the introduction of new regime of GST during the tendering process, the decision of the MSRTC cannot be said to be contrary to the tender conditions read with the corrigendum.

Held that:- The Hon’ble High Court rejected the petition.