The 2nd class of the Superior Court of Justice authorized a company in judicial recovery to compete in public bidding. The decision, prompted by the end of January, confirmed in an unpublished way of understanding the Court of Justice of the State of Rio Grande do Sul (TJRS).

State Court authorized company in judicial recovery to participate in public bids even without having submitted negative bankruptcy or concordata certificate. The TJRS pondered that, in addition to existing forecast expressed in the bidding law for the bidder to present a certificate of judicial recovery (institute that is diverse from the old concordata), the fact that the company is in the process of recovery does not prevent it from participating of bidding procedures, as well as to continue contracts signed with public entities, where all other negative certificates required by their own legislation were submitted.

The discussion faced by the Superior Court of Justice has established itself in the requirement or not of the bidder, in the concrete case, to present a certificate of judicial recovery, considering that the objective of this Institute is to enable the overcoming of economic and financial crisis situation, from the adoption of measures aimed at preserving the company, their social function and stimulus to economic activity (Article 47 of Federal Law 11.101 / 05).

decided the upper court that would be great the possibilities for the legal entity fail to comply with its responsibilities and continue with its activities, which essentially involve contracts with public entities if the judicial recovery process prevented participation in Public bids.