Embedded Files
There is no correlation between the extent of investment of a partner in a Joint Venture and his experience
There is no correlation between the extent of investment of a partner in a Joint Venture and his experience
“7. Having considered the matter, we do not find any justification on the part of the respondent-VIDC in assessing the experience of Joint Venture by reducing the actual experience of constituents of the Joint Venture to the ratio of their investment and profit sharing. There is no correlation between the extent of investment of a partner in a Joint Venture and his experience. The two are entirely different things. It cannot be said that a partner’s experience is affected in any way because he invests in the Joint Venture only to a certain extent. The attempt to correlate the two seems wholly unjustified and absurd.
8. Joint Ventures are commonly formed by two or more individuals with a view to pool their resources, skill, experience etc. in order to inter alia meet the eligibility criteria of tenders of specific projects. The fact that participation of the constituents of the Joint Venture is in a particular ratio cannot become a reason to whittle down and reduce the experience of the constituents. The partners, who constitute the Joint Venture, may agree to limit investment and profit sharing to a certain percentage. This does not mean that they have thereby agreed to have a limited experience. If, in fact, a partner has certain amount of experience, that experience remains as a part of experience of a Joint Venture when the Joint Venture makes a bid and the ratio of investment and profit sharing are the factors, which havenothing to do with such experience.”
Atasha Ashirwad Builders (J.V.) Nagpur v. State of Mahrashtra, (2010) 15 RCR (Civil) 377
Report abuse