Synopsis

The petitioner was awarded a parking site at Red Fort Metro Station for a monthly license fee of ₹7,61,000. Disputes arose regarding the actual area handed over (only Gate 1-2 vs. Gate 1-4). The petitioner defaulted on license fee payments. MCD cancelled the contract, forfeited the security deposit, and blacklisted the petitioner indefinitely. The High Court upheld the cancellation and forfeiture (since the petitioner had accepted the site map and defaulted on payments) but set aside the indefinite blacklisting, holding that blacklisting must be proportionate and follow due process. The court gave liberty to MCD to initiate fresh blacklisting proceedings with a show‑cause notice and a hearing, and to determine a reasonable period of debarment.

Court: High Court of Delhi at New Delhi

Coram: Hon’ble Mr. Justice Amit Bansal (Single Judge)

Date of Judgment: 6th May 2026

Citation: W.P.(C) 12493/2025 (2026:DHC:3834)

Core Law: Contract law – termination of contract, forfeiture of security deposit; Blacklisting – principles of natural justice, proportionality.

1. Heading of the judgment

High court of delhi at new delhi

W.p.(c) 12493 of 2025 with cm appl. 50962 of 2025

Giriraj enterprises (petitioner) vs. Municipal corporation of delhi (respondent)

Coram: hon’ble mr. justice amit bansal

Judgment reserved on: 25th march, 2026; pronounced on: 6th may, 2026

2. Legal framework

Major laws and provisions involved:

• Contract law – termination of contract, forfeiture of security deposit

• Principles of natural justice – show cause notice, opportunity of hearing

• Tender documents – notice inviting tender (nit) clauses 10(b), 11, 24, 26

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