1. If partner of a partnership firm having two partners expires, the said partnership firm gets dissolved automatically unless it is specifically mentioned in the partnership deed of the said firm that in such case the partnership firm will become proprietorship firm being owned by the living partner,
2. If not, then your partnership firm did not exist when the tender was alloted to you,
3. Moreover, if it was automatically converted to proprietorship firm as per the clause mentioned in the partnership deed then, the said proprietorship firm should not have submitted the tender showing as partnership firm since it was already mentioned in the tender documents that proprietary firm is not allowed to execute Tender,
4. The PSU is within its right to refuse payment on the ground that the proprietorship firm is not qualified to submit and execute the works as per the tender,
5. However, the proprietor in his own name showing as proprietor of the said firm, can sue the PSU if he so desires.