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2026 Supreme(Del) 203

IN THE HIGH COURT OF DELHI AT NEW DELHI
NITIN WASUDEO SAMBRE, AJAY DIGPAUL, JJ.
 
M/S Dhanvine Engineering Pvt. Ltd., Through Authorized Representative Mr. Pankaj Verma – Petitioner 
Versus
Delhi Jal Board, Through Chief Executive Officer Varunalaya PH-II, Jhandewalan, Karol Bagh, New Delhi – Respondent
W.P.(C) 1019 of 2026 & CM APPL. 5048 of 2026, W.P.(C) 1020 of 2026 & CM APPL. 4983 of 2026
Decided On : 05-02-2026
 

Advocates Appeared:
For the Petitioner:Mr. Amit Sibal, Senior Advocate with Mr. Sanjeev Mahajan, Mr. Harsh Bora and Ms. Simran Rao, Advocates
For the Respondent:Mr. Tushar Sannu, Standing Counsel with Mr. Priyankar Tiwary, Ms. Pulak Gupta, Ms. Shambhavi Vatsa, Ms. Rajbala and Ms. Fajallu Rehman, Advocates, Mr. Pankaj Kumar, EE, Mr. Ravinder Kumar, AE and Mr. Anil Kharb, JE, officers of DJB, Mr. Dinesh Malik, Panel Counsel with Mr. Puneet Jain, Advocate.

Tender eligibility criteria can legally disqualify bidders based on pending criminal proceedings, reflecting public interest, even without prior conviction, affirming judicial restraint in administrative decisions.

Headnote:(A) Constitution of India - Articles 21, 266(3), 283, 77(3) - General Financial Rules, 2017 - Rule 151 - Bid disqualification based on pending criminal proceedings - Court found no violation of constitutional rights or GFR; emphasizes presumption of innocence does not apply to tender eligibility - The condition to disqualify bidders with FIRs/chargesheets, albeit without conviction, is recognized as lawful and necessary for public interest and project integrity. (Paras 37, 47, 65)

(B) Judicial Review - Scope of judicial intervention in tender processes - Courts are advised against interfering with tender conditions unless proven arbitrary or mala fide - The Court affirmed that ensuring public safety and integrity in public works takes precedence over private interests. (Paras 25, 66)

Facts of the case:
The petitioner, a construction firm, challenged eligibility conditions in a tender that disqualified bidders based on criminal investigations without conviction. It argued this violated their rights and was arbitrary.

Findings of Court:
The Court held the disqualification clause serves public interest and is not arbitrary, affirming that the tender authority must ensure accountability among bidders.

Issues: Whether the tender condition mandating disqualification based on pending criminal proceedings without conviction is arbitrary or violates constitutional rights.

Ratio Decidendi: The Court reasoned that protecting public interest justifies the disqualification, emphasizing that judicial review should respect the expertise of tender authorities.

Result: Petitions dismissed.

Table of Content
1. tender conditions must be reasonable and cannot disqualify bidders without due process. (Para 3 , 4 , 18)
2. legal framework governs tender eligibility and debarment processes. (Para 5 , 6 , 7 , 13 , 42)
3. presumption of innocence applies only in criminal matters; eligibility in tenders is governed by specific criteria. (Para 10 , 11 , 12 , 41 , 44)
4. public interest prevails over private commercial interests in government tender processes. (Para 14 , 15 , 35)
5. court determined no interference warranted in tender conditions for public work. (Para 69 , 70 , 71)

JUDGMENT :

NITIN WASUDEO SAMBRE, J.

1. Since the issue involved in both these writ petitions is identical, both the writ petitions are tagged and heard together, by consent of the respective counsels and are disposed of by this common judgment.

2. For the purpose of convenience, the facts in W.P(C) No.1019 of 2026 are taken into account.

3. In the petition, the petitioner has come out with the following prayers:-

“(a) Issue a writ of Certiorari or any other appropriate writ, order or direction quashing and setting aside the impugned eligibility condition contained in the tender dated 15.01.2026 and Last date and time for tender dated 09.02.2026. floated by Respondent No.1 under the heading ‘Eligibility Condition relating to Criminal Proceedings’, to the extent it disqualifies bidders solely on the basis of registration of FIR and/or filing of charge-sheet, without conviction or adjudicated misconduct;

(b) Issue a writ of Mandamus directing the Respondents, particularly Respondent No.1, to permit the Petitioner to participate in the tender process and to consider the Petitioner’s bid to be submitted pursuant to NIT filed as ANNEXURE P-1 without reference to pendency of any FIR or charge-sheet;

(c) Pass any other or further order(s) as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case.”

4. Brief facts necessary for deciding the present petition are as under:- a. That the petitioner, a company incorporated under the Companies Act, is claimed to be a leading provider of comprehensive construction services in the field of civil engineering, infrastructure, development, and construction projects. The services provided by the petitioner encompass design, engineering, procurement, construction, operation and maintenance, planning, and project management.

b. The petitioner claims that it has established credentials in executing complex and challenging projects in all kinds of environments and has earned goodwill, particularly a benchmark in the water and wastewater management industry.

c. According to the petitioner, it has successfully completed and commissioned several projects, including contracts awarded by respondent no. 1, the Delhi Jal Board. The petitioner has given the details of the projects completed by it to respondent no. 1.

d. Respondent no. 1, a statutory corporation, floated a tender for the construction of four Decentralized Sewage Treatment Plants and Sewage Pumping Stations at various locations, as it discharges the public function of supplying clean drinking water and treating sewage for Delhi. The tender work includes operation and maintenance, including a two year Defect Liability Period.

e. The last date of submission of tender was 9th September, 2025, which provides for detailed technical, financial and eligibility criteria.

f. The petitioner, through its joint venture submitted its bid pursuant to the notice issued by respondent no. 1 inviting offers. The bid process was in two parts, viz., eligibility and qualification of the bidder were first to be examined on the basis of the details submitted under the technical bid with respect to the eligibility and qualification criteria prescribed in the tender. In case the tenderer was found eligible and qualified as per the technical bid, the financial bid under the second part was to be opened in respect of those bidders who were found to be technically eligible and qual

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