Synopsis

Bhilai engineering corporation limited challenged its disqualification from a tender floated by sail for installation of a stamp charged coke oven battery (a first‑of‑its‑kind project for sail). The disqualification was based on an internal advisory noting the petitioner’s unsatisfactory performance in a different project (sinter plant at bokaro), where the petitioner was the main epc contractor and had failed to complete the work, leading to de‑scoping. The petitioner had been given an opportunity of hearing pursuant to a previous court order. The delhi high court dismissed the petition, holding that sail was entitled to assess the petitioner’s past performance, the technologies were distinct, the disqualification did not amount to blacklisting (the petitioner continued to be awarded other contracts), and that 25% of the project had already been completed by the successful bidder.

Court: High Court of Delhi at New Delhi

Coram: Hon’ble Mr. Justice Anil Kshetarpal and Hon’ble Mr. Justice Amit Mahajan (Division Bench)

Date of Judgment: 14th May 2026

Citation: W.P.(C) 6041/2024 (2026:DHC:4228-DB)

Core Law: Constitutional Law – Article 226 (judicial review in public procurement); Tender law – evaluation of past performance; Blacklisting vs. disqualification.

1. Heading of the judgment

High court of delhi at new delhi

Writ petition (civil) no. 6041/2024, cm appl. 25036/2024 and cm appl. 5606/2025

Bhilai engineering corporation limited (petitioner) vs. Steel authority of india limited (respondent)

Coram: hon’ble mr. justice anil kshetarpal and hon’ble mr. justice amit mahajan

Judgment reserved on: 30th april, 2026; pronounced on: 14th may, 2026

2. Legal framework

Major laws and provisions involved:

• Constitution of india, 1950 – article 226 (writ jurisdiction over state instrumentalities in contractual matters)

• Public procurement principles – evaluation of technical bids based on past performance

• Service/tender law – dis

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