• Whether wife proprietor firm is allowed to bid in competition

Husband & wife have different proprietor firms each having their GST number, Current bank account in name of their Firm, Submit their separate firm balance sheet to income tax from long bank, i want to ask whether they are allowed to bid same tender in competition or not
Asked 7 years ago in Constitutional Law

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12 Answers

Why not, Bother have separate identity and independent business status.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

1. Husband and wife are two different identity under the eye of law.

2. So both of them can compete for the same tender and this is not a ground for disqualification unless the rules set for valid tender so provides.

3. In other words there is no legal infirmity if both of them apply for the same tender provided they run two separate trading/business entity. 

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

You both can bid separately for tender unless there is clause in tender documents which prohibit such bidding 

Ajay Sethi
Advocate, Mumbai
99788 Answers
8147 Consultations

As two different entities they both can simultaneously apply and be allowed to bid same tender in competition.

In my opinion there is no legal infirmity in it.

 

T Kalaiselvan
Advocate, Vellore
89989 Answers
2495 Consultations

If firm registration are different then they can  participate in same bid tender. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Then file a writ petition in high court. That is only option if they refuse to submit your tender.

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

1. You don't need ruling on this point. No ruling would even exist on this.

2. You are governed by the terms and conditions of the tender. 

3. If the tender is rejected on this ground then it can be challenged in the High Court through a writ petition.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

In fact all of the tenders invited in view of fair competition have a Clause regarding Conflict of Interest which deals with this kind of Situations.

The Clause reads something like this.

A Bidder shall not have a conflict of interest. Any Bidder found to have a conflict of interest shall be disqualified. A Bidder may be considered to have a conflict of interest for the purpose of this bidding process, if the Bidder:

(a) directly or indirectly controls, is controlled by or is under common control with another Bidder; or

(b) receives or has received any direct or indirect subsidy from another Bidder; or

(c) has the same legal representative as another Bidder; or

(d) has a relationship with another Bidder, directly or through common third parties, that puts it in a position to influence the bid of another Bidder, or influence the decisions of the Employer regarding this bidding process; or

(e) participates in more than one bid in this bidding process.Participation by a Bidder in more than one Bid will resulting the disqualification of all Bids in which such Bidder is involved. However, this does not limit the inclusion of the same subcontractor in more than one bid; or

(f) any of its affiliates participated as a consultant in the preparation of the design or technical specifications of the works that are the subject of the bid; or

(g) any of its affiliates has been hired (or is proposed to rehired) by the Employer as Engineer for the Contract implementation; or

(h) has a close business or family relationship with professional staff of the Employer (or of the project implementing agency, or of a recipient of a part of the loan) who:

(i) are directly or indirectly involved in the preparation of the bidding documents or specifications of the contract, and/or the bid evaluation process of such contract; or (ii) would be involved in the implementation or supervision of such contract unless the conflict stemming from such relationship has been resolved in a manner acceptable to the Agency throughout the procurement process and execution of the contract.

if you own a parent company which has 2-3 subsidiaries. If you authorize them to represent your parent company in the tender, you will be shown the backdoor during Technical Evaluation of your Bid Submissions which will definitely include a Memorandum of Articles of Association wherein, the ownership status of your company is declared.

 

Thus the above would throw light to your question(?)

T Kalaiselvan
Advocate, Vellore
89989 Answers
2495 Consultations

they can if there is no contract to do the contrary.

Prashant Nayak
Advocate, Mumbai
34522 Answers
249 Consultations

If there is no clause in tender you are at liberty to bid separately 

 

you cannot be disqualified unless terms and conditions of tender contain such a clause 

Ajay Sethi
Advocate, Mumbai
99788 Answers
8147 Consultations

The tender conditions do not specifically state the restrictions but as you and your wife have all the documents and are operating different firms therefore you cannot be censored for that and you can participate in the bidding process. I dont think you have to show the authorities why you can participate. Rather the authorities have to show why you cant participate and in case a rule does not exist, they have to let you participate.

Regards 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

  1. As per the information mentioned in the present query, makes it clear that you both can go for the bid of the tender as you have been doing each other’s business totally being different in terms of the power/ and delegation of authority.
  2. When there is no such specific term in the advertisement then I don’t think so that there is any problem going for the same.
  3. In fact, there is no law which can permit any restriction on two separate business irrespective of the fact of being the relates to each other’s.
  4. And if still they do discrimination then you may have to file a Writ of Mandamus in nature under Article 226 of our Constitution seeking clairity on the issue of biding.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

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