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2026 Supreme(Del) 170

IN THE HIGH COURT OF DELHI AT NEW DELHI
DEVENDRA KUMAR UPADHYAYA, C.J., TUSHAR RAO GEDELA, J.
Digitech Call System Pvt. Ltd - Petitioner 
Versus 
India Post Payments Bank Ltd & Ors. – Respondents
W.P.(C) 15035 of 2025, CM APPL Nos.61930 of 2025, 69414 of 2025 & 73155 of 2025
Decided On : 17-02-2026

Advocates Appeared:
For the Petitioner:Mr. Zoheb Hossain, Mr. Sanjeev Menon, Mr. Kartik Sabharwal, Mr. Pranjal Tripathi and Mr. Satyam, Advocates.
For the Respondents:Mr. Kirtiman Singh, Senior Advocate with Mr. Anm Kumar Shukla, Ms. Taha Yasin, Mr. Yasharth Shukla and Mr. A.Khandelwal, Advs., Ms. Shweta Bharti, Ms. Tejaswini Chandrasekhar and Ms. Nikita Sharma, Advs., Mr. Tushar Jain, Mr. Pradul Singhal and Ms.Kanika Gupta, Advs.

The court upheld that stringent eligibility criteria in public procurement for critical operations are lawful and necessary, allowing no exemptions for MSMEs when justified by the operational context.

Headnote:(A) Constitution of India, 1950 - Article 226 - Public Procurement Policy - Request for Proposal (RFP) challenged for excluding MSME Start-Ups from relaxation on turnover and experience - Court held that eligibility criteria are lawful, given the sensitive nature of operations involved - RFP's conditions do not contravene applicable Government guidelines. (Paras 1, 3, 27, 40)

(B) Judicial Review - Scope of intervention in tendering process limited, not to interfere unless there is arbitrariness or non-compliance with policy. (Paras 13, 16)

(C) Exemption Clauses - Criticality of operations justifies refusal of exemptions for MSEs, placements based on previous conditions validated. (Paras 18, 36)

Facts of the case:
Petitioner challenged clauses of an RFP issued by India Post Payments Bank stipulating minimum turnover and experience criteria, arguing that such criteria discriminate against Start-Ups and MSMEs. The petitioner, a registered MSE and Start-Up, was disqualified under these conditions.

Findings of Court:
The Court found no violation of the law in the RFP's criteria and upheld the authority's discretion to establish requirements reflecting the critical nature of banking operations.

Issues: Whether the disqualification criteria constituted an unfair disadvantage to MSMEs and Start-Ups under the procurement guidelines.

Ratio Decidendi: Court confirmed that procurement processes prioritize public safety and financial security, warranting stringent eligibility criteria, and that the legislature's discretion supports such criteria under the policies.

Result: Writ petition dismissed, but directions issued for compliance with prior court orders regarding procurement review.

Table of Content
1. filing of the writ petition and factual background. (Para 1 , 2)
2. legal arguments by the petitioner regarding unfair eligibility criteria. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12)
3. respondent's contentions regarding the legality of the rfp. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21)
4. court's observations on statutory provisions and legal precedents. (Para 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39)
5. conclusion dismissing the writ petition but directing compliance with previous ruling. (Para 40)

JUDGMENT :

TUSHAR RAO GEDELA, J.

1. Present petition has been filed under Article 226 of the Constitution of India, 1950, inter alia, seeking the following reliefs:-

“a) Issue a writ, order, direction in the nature of certiorari, quashing and setting aside the following clauses of the RFP dated 04.09.2025 floated by the Respondent No. 1, through the GeM portal by way of Bid Document bearing Bid No. GEM/2025/B/6646167, for the selection of Service Provider for Contact Centre/Call Centre Operations:-

i. Sl. No. 1 of Section B of the Table at Annexure 3 of Clause 3.2 of the RFP which provides that the bidder should have a minimum average turnover of Rs. 50 Crores during the last three FYs, insofar as the same applies to Start-ups and MSEs;

ii. Sl No. 1 of Section C of the Table at Annexure 3 of Clause 3.2 of the RFP which provides that the bidder should be operating with an aggregate of at least 3000 agents for its Contact Centre Voice Operations based in India catering to domestic clients during the last FY, insofar as it applies to Start-ups and MSEs;

iii. Sl. No. 2 of Section C of the Table at Annexure 3 of Clause 3.2 of the RFP which provides that the bidder should have provided the inbound/outbound contact centre services in atleast two Schedule Commercial bank during three FYs totalling to minimum of 1000 agents, insofar as it applies to Start-ups and MSEs;

iv. Clause 3.15 of the RFP which allocates 50 out the total 110 marks to the past experience of the bidder;”

2. Brief facts shorn of unnecessary details are as follows:-

a. Petitioner claims to be a duly incorporated company engaged in providing manpower and infrastructure services, including call centre services, for various projects. Petitioner is a registered Micro and Small Enterprise (hereinafter referred to as “MSE”) and is also registered with the Department for Promotion of Industry and Internal Trade (hereinafter referred to as “DPIIT”), Government of India, as a “Start-Up”.

b. It is the case of the petitioner that respondent no.1/the tendering authority floated the impugned Request for Proposal (hereinafter referred to as “RFP”) dated 04.09.2025, for selection of service provider for contact centre operations. The petitioner submitted pre-bid queries bringing the attention of the respondent no.1/the tendering authority to the relevant Rules and Guidelines of the Government of India with regard to granting exemption from minimum turnover and prior experience requirements for MSMEs/ Start-ups.

c. The petitioner states that on 11.09.2025, the respondent no.1/the tendering authority published responses to the pre-bid queries stating that “as IPPB is a completely digital bank, the operations involve handling of sensitive financial data and customer privacy, where uninterrupted service and proven large-scale experience are paramount. Considering the scale, sensitivity and public interest involved, exemptions or relaxations under the MSME/Startup category have not been provided in this tender. The eligibility criteria are, therefore, uniformly applicable to all prospective bidders.”

d. Aggrieved by the stance taken by the respondent no.1/the tendering authority, the petitioner submitted its representation dated 12.09.2025.

e. The petitioner submits that on 16.09.2025, a bid was duly submitted alongwith relevant documents showing the MSE and Start-ups status of the petitioner.

f. Aggrieved by the absence of exemption on turnove

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