If Holding Company bids on the experience of its subsidiaries - Whether consideration of the bid by the owner is correct?

Last updated: 29 September 2022
Quick Summary
The Supreme Court has ruled that the experience of a holding company can be considered as the experience of its wholly-owned subsidiaries when bidding for projects. This decision clarifies that a formal consortium or joint venture is not always necessary for such experience to be recognised. The court emphasised that commercial wisdom and a broad interpretation of 'government-owned entity' should prevail, provided there is no perversity or bias.

Court :
Supreme Court of India

Brief :
It a well settled fact that experience of a holding company will be considered as experience of subsidiary or vice-versa. If a holding company has experience in a field in which its subsidiary does not has any experience and subsidiary applies along with his holding company in a project or tender then experience of holding company will be considered as experience of its subsidiary. There is no need to form a consortium or venture.

Citation :
Civil Appeal Nos. 1353-1354 OF 2017 arising out of S.L.P. (C) Nos. 35104-35105 OF 2016

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