Synopsis

The petitioner, a sole proprietorship firm, participated in multiple tenders issued by the Delhi Development Authority (DDA) for maintenance of swimming pools at various sports complexes. Two days before the scheduled draw of lots, the DDA disqualified the petitioner from all tenders by an email, citing Clause 47 (prohibiting relationship between contractor and officials of the concerned sports complex) and Clause 77 (prohibiting government servants, DDA employees, or persons on contract with DDA from being made partners to the contract). The proprietor of the petitioner firm was working as a receptionist at the Paschim Vihar Sports Complex under a private contractor (M/s Rajsheel Enterprises), not directly under the DDA. The Delhi High Court held that the disqualification was arbitrary and violated principles of natural justice, as no show cause notice was issued before the drastic action. The court also interpreted Clause 47 to apply only to the “concerned sports complex” (i.e., Paschim Vihar) and not to other complexes, and Clause 77 to not cover outsourced employees of private contractors. The impugned decision was quashed except that the petitioner remained disqualified from participation in the tender for Paschim Vihar Sports Complex. The court also noted the proprietor’s voluntary affidavit that she would resign within two months.

Court: High Court of Delhi at New Delhi

Coram: Justice Jasmeet Singh

Date of Judgment: 16th April 2026

Citation: W.P.(C) 3989/2026

Core Law: Constitutional Law – Articles 14, 19(1)(g); Principles of Natural Justice; Tender law; Judicial review of administrative actions

Reading Time: 4–5 minutes

2. Legal Framework

Major laws and provisions involved

• Constitution of India – Article 14 (right to equality), Article 19(1)(g) (right to practice any profession or carry on any occupation, trade or business)

• Principles of natural justice – audi alteram partem (right to be heard)

• Tender law – terms of invitation to tender; judicial review of administrative decisions in tender matters

Key legal principles applied

• Violation of natural justice vitiates administrative action: Before taking any adverse action such as disqualification or debarment, the authority must issue a show cause notice and grant a reasonable opportunity of being heard. Ex‑parte disqualification without notice is void.

• Blanket disqualification from all tenders based on a clause limited to a specific complex is arbitrary: Clause 47 of the NIT prohibited a relationship between the contractor and officials of the “concerned sports complex.” The court interpreted “concerned” to mean the specific sports complex where the relationship exists. Disqualifying the petitioner from all other sports complexes was an unreasonable enlargement of the clause.

• Outsourced employee of a private contractor is not an “e

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