Court dismisses R.K. Jain Infra's plea to participate in NHAI tender despite ongoing debarment period
In a significant ruling, the Delhi High Court has dismissed a petition filed by R.K. Jain Infra Projects Private Limited, seeking permission to participate in a Notice Inviting Tender (NIT) issued by the National Highway Authority of India (NHAI). The division bench, comprising Justices Tejas Karia and Madhu Jain, upheld the Debarment Order against R.K. Jain Infra, which prohibits their participation in tenders during its operative period.
The dispute arose when the Petitioner challenged its exclusion from participating in the NIT during the debarment period, arguing that the contractual obligations under the new tender would commence post the debarment period. However, the court observed that the Debarment Order explicitly prohibits participation in any tender during its operative period, rendering the date of commencement of the contractual period under the NIT immaterial.
R.K. Jain Infra, engaged in toll collection at national highways, had been debarred for a year starting 06 August 2025. Their operations at the Ghamroj Fee Plaza continue under an agreement valid until 12 August 2026. Despite this, the Respondent published an updated list of pre-qualified bidders, showing R.K. Jain Infra as debarred. The company's plea was that excluding them from the NIT effectively extended the debarment's practical consequences beyond its stipulated tenure.
The court, however, refused to accept this argument, emphasizing that the Debarment Order's operative period governs the ability to participate in tenders, not the commencement of contractual obligations. The court noted that the Petitioner had previously sought an interim stay of the Debarment Order in another pending writ petition, which the Single Judge had not granted.
The High Court's decision underscores the adherence to the terms of debarment, affirming that the Petitioner's attempt to circumvent the pending adjudication process by filing a fresh writ petition was not permissible. Consequently, the court dismissed the writ petition along with pending applications, with no order as to costs.
Bottom line:-
Debarment Order prohibits participation in tenders during its operative period, irrespective of when the contractual period under the tender begins.
Statutory provision(s): Article 226 of the Constitution of India
