Quick Summary: In a recent court decision, SMS Limited won a case against Western Coalfields Limited over a tender dispute involving GST. The court ruled that the tender price was meant to be exclusive of GST, siding with SMS Limited.
In this case, SMS Limited, represented by Mr. Ujjwal M. Garg, went head-to-head with Western Coalfields Limited (WCL), represented by its Chairman and Managing Director. The legal teams were led by Mr. M.G. Bhangde for SMS and Mr. Anand Jaiswal for WCL.
The issue began when SMS Limited bid on a tender for coal mining work. They believed their bid did not include GST, but WCL argued it did. This dispute stemmed from unclear tender documents which led to different interpretations.
"The terms and conditions of the tender documents are crystal clear which shows that the tender was excluding GST."
Judge Rajnish R. Vyas, with Judge Anil S. Kilor, heard the case. They focused on whether the tender required prices to include or exclude GST. They found that the documents clearly stated the price should exclude GST.
SMS Limited's Stand:
They argued that the tender documents and additional terms clearly stated that the price was exclusive of GST. They pointed out that their bid was declared the lowest based on this understanding.
WCL's Argument:
WCL claimed the bid should include GST, citing that other bidders followed this. They suggested the court shouldn't get involved because there was an agreement to settle disputes outside of court.
The court ruled in favor of SMS Limited, stating that the tender documents were clear about excluding GST. They rejected WCL's request to pause the judgment.
"The conditions are crystal clear that price quoted was exclusive of GST."
The court's decision allows SMS Limited to proceed with their bid as initially understood. This case highlights the importance of clear tender documents to avoid such disputes in the future.
