LLP Can Use Partner’s Prior Proprietorship Experience for Tenders : Bombay High Court

The Bombay High Court ruled that when a sole proprietor joins as a partner in an LLP, the firm can rely on the individual’s prior experience, even without a notarised business transfer agreement. 

The Court found that rejecting Nandkumar Infrastructure LLP’s bid for lack of a notarised business transfer agreement was arbitrary.

Citing New Horizons Ltd. v. Union of India (1995), the Court noted that Section 23 of the LLP Act doesn’t bar such experience claims.

The court directed the tendering authority to open the petitioner’s financial bid and proceed with renegotiation between the lowest bidders. The writ petition was partly allowed.