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2016 (6) TMI 388 - SUPREME COURTQualification of bidder for tender - High Court relied on Section 366 of the Companies Act which falls under Chapter XXI and some other statutes to conclude that the word 'Company' used in the NIT was somewhat vague. Thereafter, it was held that respondent no.1 was erroneously held ineligible and excluded from the tender process - Held that:- Section 366 of the Companies Act is completely inapplicable to the facts and circumstances of the case. The provisions of Section 366 of the said Act are applicable only to that part of the Companies Act to which a reference has been made in that Section. Similarly, reliance placed for interpreting ‘company’ on several other statues such as the Income Tax Act, Negotiable Instruments Act, Employees State Insurance Act and Minimum Wages Act etc. is wholly irrelevant. On reading of the terms of the NIT it is clear that the word “Company” can only mean a company as understood under the Companies Act and cannot be read to include a firm. The word “Company” in the NIT is incapable of any other meaning.The NIT makes it absolutely clear that only an individual or a company is eligible to participate in the tender. Since Respondent No. 1 is neither an individual nor a Company but a firm, Respondent No. 3 was fully entitled to reject the bid of the said respondent. Under the circumstances, we are of the opinion that the decision of the High Court deserves to be set aside and we do so accordingly.
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