Contractual Debarment Remains Operative Against Tenders Issued Within Debarment Period Regardless of Future Contract Commencement Date

The Petitioner, a company engaged in toll collection, was debarred by the Respondent (NHAI) for one year via an order dated 06.08.2025.

The Petitioner challenged this debarment in a separate petition (W.P.(C) 12044/2025), where judgment is currently reserved.

On 02.06.2026, while the debarment was still active, the Respondent issued a Notice Inviting Tender (NIT) for user fee collection at Ghamroj Fee Plaza—a project currently managed by the Petitioner until 12.08.2026.

The Petitioner sought a direction to participate in the NIT, arguing that since the new contract would commence after its debarment expires on 06.08.2026, exclusion would unfairly extend the debarment's effects.

1. Whether a debarred entity can be permitted to participate in a tender process if the actual contractual performance is scheduled to commence after the expiry of the debarment period.

2. Whether the Petitioner is entitled to interim protective intervention to participate in the NIT while its challenge to the original debarment order is pending adjudication.

Principles governing judicial review under Article 226 of the Constitution of India regarding administrative debarment and tender processes.

A debarment order remains fully operative and enforceable unless expressly stayed or set aside by a competent court.

The eligibility of a bidder is determined at the time of bid submission, and the prospective expiry of a penalty does not grant a right to circumvent existing legal disabilities.

The Court rejected the Petitioner's contention that the commencement date of the contract (12.08.2026) was the relevant factor for eligibility.

The Court reasoned that the material date is the time of bid submission (16.06.2026), at which point the Debarment Order dated 06.08.2025 was still valid and operative.

The Court observed that since a learned Single Judge had already declined to grant any interim stay in the original challenge (W.P.(C) 12044/2025), allowing the Petitioner to participate through a fresh writ petition would amount to an improper circumvention of the pending adjudicatory process.

The Court found no grounds to interfere with the Respondent's list of pre-qualified bidders which correctly identified the Petitioner as a debarred entity.

The Court dismissed the Writ Petition and all pending applications, clarifying that the date of contractual performance is irrelevant if the entity is legally debarred at the time of the tender's bid submission window.

No order as to costs was made.