Delhi High CourtAdministrative and Public LawContract Law

Interim Stay of Blacklisting Does Not Absolve Bidder’s Obligation to Disclose Prior Orders in Public Tenders.

Ms Velocis Systems Pvt Ltdv.National Informatics Centre Services Incorporated Nicsi

Interim Stay of Blacklisting Does Not Absolve Bidder’s Obligation to Disclose Prior Orders in Public Tenders.. Ms Velocis Systems Pvt Ltd vs National Informatics Centre Services Incorporated Nicsi. Delhi High Court. LawLens
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In brief

The question

1. Whether the Respondent's decision to technically disqualify the Petitioner on the ground of submitting an incorrect and incomplete disclosure regarding blacklisting warrants interference under Article 226

The court held

The Court answered the issues in the negative, holding that the Respondent was justified in disqualifying the Petitioner for failing to adhere strictly to the eligibility declaration format

It also directed

The Court held that an interim order does not dispense with the obligation of full disclosure in public procurement

The Writ Petition was dismissed, affirming that the TEC's decision was neither arbitrary nor perverse

01Facts

The Petitioner participated in a tender initiated by the Respondent (NICSI) for empanelment of agencies for office support and project management services

¶ 4

The Petitioner submitted its bid on 30.12.2025

¶ 4

Previously, on 09.12.2025, the Petitioner was blacklisted by APEDA, an order it claims to have received on 22.12.2025

¶ 8, 15

The Petitioner challenged this blacklisting in a separate writ, obtaining a stay on 29.12.2025

¶ 8

In its bid for the current tender, the Petitioner signed a declaration on 22.12.2025 stating it "has not been blacklisted or not under active blacklisting period"

¶ 16

The Respondent disqualified the Petitioner on 06.03.2026 for furnishing incorrect information

¶ 5

Following a court-directed representation, the Technical Evaluation Committee (TEC) affirmed the disqualification on 25.03.2026 (the Impugned Order)

¶ 7

02Issues

i.1. Whether the Respondent's decision to technically disqualify the Petitioner on the ground of submitting an incorrect and incomplete disclosure regarding blacklisting warrants interference under Article 226

¶ 2

ii.2. Whether an interim stay on a blacklisting order by a Court obliterates the factum of blacklisting for the purpose of tender disclosures

¶ 11, 19

03Law Applied

The court applied the principle that judicial review in contractual matters is limited to assessing if the decision-making process was arbitrary or mala fide

¶ 14

Clause 8.1(c) of the Request for Empanelment (RFE), which mandates summary rejection for false or incorrect information

¶ 11, 22

The court further applied the doctrine from Bgr Deco Consortium v. Gujarat Mineral Development Corporation Ltd., which establishes that a judicial stay on a blacklisting order does not efface the underlying fact of the order's existence, and that the "author of the tender" is the best interpreter of its requirements

¶ 11, 26

04Reasoning

The Court observed that the Petitioner’s declaration was ambiguous, stating it "has not been blacklisted or not under active blacklisting," which failed to provide the clear, categorical disclosure required by the RFE

¶ 16, 17

The Court reasoned that since the Petitioner was aware of the APEDA blacklisting order by 22.12.2025, it was obligated by the principle of "utmost candour" to disclose the factum of the order along with the subsequent stay

¶ 15, 18

The Court rejected the argument that the interim stay of 29.12.2025 erased the history of blacklisting; a stay merely "eclipses" the operation of an order but does not "obliterate" the material fact of its issuance

¶ 19, 26

Consequently, the TEC’s finding that the disclosure was incomplete and incorrect was deemed a plausible interpretation of the RFE conditions, precluding judicial interference

¶ 24, 27

05Holding

The Court answered the issues in the negative, holding that the Respondent was justified in disqualifying the Petitioner for failing to adhere strictly to the eligibility declaration format

¶ 21, 25

The Court held that an interim order does not dispense with the obligation of full disclosure in public procurement

¶ 20

The Writ Petition was dismissed, affirming that the TEC's decision was neither arbitrary nor perverse

¶ 31, 32
Delhi High Court

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Ms Velocis Systems Pvt LtdvsNational Informatics Centre Services Incorporated Nicsi

Delhi High Court · May 19, 2026

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