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As per case facts, M/S. CRRC CORPORATION Limited, a government-owned entity, bid for a metro project. The respondent, METRO LINK EXPRESS FOR GANDHINAGAR & AHMEDABAD (MEGA) COMPANY Limited, disqualified the
...appellant stating it did not meet the eligibility criterion for "experience" as a single entity, rejecting the experience of its 100% owned subsidiary companies based on a pre-bid clarification. The High Court upheld this. The question arose whether a government-owned holding company, bidding as a single entity, could utilize the experience of its 100% wholly-owned subsidiary companies to fulfill the tender's experience qualification criteria (Clause 2.4) or if a Joint Venture/Consortium was mandatory. Finally, the Supreme Court ruled that the disqualification was illegal, arbitrary, and perverse. The Court held that a government-owned entity with its 100 percent wholly-owned subsidiaries should be understood as a single, integral unit for bidding purposes. It found the clarification relied upon by MEGA was for a different context and was improperly applied. Thus, the appellant was entitled to claim the experience of its subsidiaries, allowing the appeal and setting aside the High Court's judgment.
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