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para (a) above would not be required to be followed

Circularstaff-establishment
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TypeVCRC archived Railway commercial circular / manual
Topicstaff-establishment
Archive sourcevcrc.in

Summary

para (a) above would not be required to be followed Banning of business dealings with a firm shall be of two types:

Text of the circular

136 CHAPTER – XI

REGISTRATION, DEMOTION & REMOVAL FROM THE APPROVED LIST AND SUSPENSION & BANNING OF BUSINESS DEALINGS ETC.

OF SUPPLIERS AND BUILDING CONTRACTORS

A.

STANDARDISED CODE FOR SUPPLIERS

(Authority: Department of Supply O.M. No. 13/38/65-V dated 14.9.1971, Railway Board’s Secret letter Nos. 69/Vig.I/I/56 (ii) dated 17.3.1972, V4/75/Policy/ST/46 (ii) dated 27.12.1975 & V4/75/POLICY/ST/46 (iii) dated 29.12.1975)

1101.

Procedure:

All Ministries, Departments and Offices of the Central Government shall follow this Code and shall not maintain any separate Code of their own.

1102.

Definitions:

Some terms which have been used in the following paras are defined below for clarity:

(i) Firm:The term ‘firm’ used in the Code includes an Individual or Person, a Company, a Cooperative society, a Hindu Undivided Family and an Association or Body of persons, whether incorporated or not, engaged in trade or business.

(ii) Proprietor:

This term includes Directors of a Private Limited Company, members of a Hindu Undivided Family, a member of an Association of persons and a Director of a Public Limited Company.

(iii) Allied Firm : All concerns which come within the sphere of effective influence of the banned/suspended firms shall be treated as allied firms. In determining this, the following factors may be taken into consideration:

(a) Whether the management is common;

(b) Whether majority interest in the management is held by the Partners or Directors of the banned/suspended firm;

(c) Whether substantial or majority shares are owned by the banned/suspended firm and by virtue of this, it has a controlling voice.

No reference to this Code shall be made in any circumstances in any communication to any party outside the Government or in any pleading or affidavit filed in a Court.

137 1103.

Approved List of Suppliers:

(i) Every Ministry/Department/Office, which makes regular purchases, should maintain an up-to-date list of approved suppliers, after taking into consideration their financial standard, capacity, past performance etc.

(ii) As recommended by the Stores Purchase Committee, it is desirable that there should be coordination between the Directorate General of Supplies & Disposals and other Departments of the Government of India with a view to prepare a common list of suppliers. For this purpose, the DGS&D will make available to the Ministries/Departments the list of the approved suppliers maintained by them and also periodically, the amendments made to that list.

1104.

Registration:

The Head of Office or any other authority nominated by him will be competent to include the name of a firm in the list of approved suppliers maintained by that Office.

Such competent authority may also lay down the conditions and formalities, which have to be satisfied by a firm before its name can be included in the list of approved suppliers. Such an authority will also be competent to order the removal of a firm from the list of approved suppliers.

1105.

Removal:

A firm may be removed by the Competent Authority (Head of the Department or any other authority nominated by him) from the list of approved suppliers if, on account of its performance or other disabilities, it is no longer considered fit to remain on the approved list. Such orders will be endorsed to other Government Departments.

1106.

Conditions for Removal:

Removal from the list of approved suppliers may, at the discretion of the Competent Authority, be ordered if a firm:

(a) fails to execute a contract or fails to execute it satisfactorily;

(b) no longer has the technical staff or equipment considered necessary;

(c) fails to furnish income-tax clearance certificate if required under the rules; or

(d) is declared bankrupt or insolvent or its financial position has become unsound and in the case of Limited Company, it is wound up or taken into liquidation.

138 1107.

Communication of Orders:

(i) Orders removing a firm from the list of approved suppliers 

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