Delhi High Court

Tender eligibility requires strict adherence to NIT stipulations for audited financial net worth certificates.

M/S Yamuna Enterprises vs Delhi Development Authority & Anr.

Delhi High CourtJUDGMENT: April 01, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner filed a writ petition challenging the tender process and seeking the quashing of eight identical tenders issued by the Delhi Development Authority (DDA) for various sports complexes

Source reference: para. 1

During proceedings on 25.03.2026, the Petitioner narrowed the challenge to its disqualification regarding the 7th tender (NIT No. 14/PDKP/DDA/2025-26) for the Poorv Delhi Khel Parisar

Source reference: para. 2-3

The Petitioner’s bid was rejected on the ground that it failed to submit a net worth certificate based on the audited accounts for the Financial Year 2024-25

Source reference: para. 4

The Petitioner contended that other bidders who also failed to fulfill this specific stipulation had their bids accepted by the DDA

Source reference: para. 4

In response, the DDA admitted via affidavit that while some accepted certificates did not explicitly state they were based on audited accounts, they were verified by Chartered Accountants; however, the DDA conceded these were not strictly in accordance with the Notice Inviting Tender (NIT)

Source reference: para. 6
02

Issues

1. Whether the DDA was required to strictly adhere to the eligibility criteria regarding net worth certificates based on audited accounts as stipulated in the NIT

Source reference: para. 4, 8

2. Whether the Petitioner was entitled to relief against its disqualification in light of the DDA's inconsistent application of tender conditions

Source reference: para. 4, 7
03

Law Applied

The court relied on the principle of strict adherence to the terms and conditions of a Notice Inviting Tender (NIT).

Source reference: para. 8

It is a settled principle in administrative law that an issuing authority must act within the bounds of the criteria it sets for itself in tender documents to ensure transparency and non-arbitrariness

Source reference: para. 8
04

Reasoning

The Petitioner argued that the DDA applied a double standard by disqualifying the Petitioner for a deficiency that was overlooked in the bids of other successful tenderers

Source reference: para. 4

The DDA, through its submissions and affidavit, acknowledged that the net worth certificates of certain other bidders were not strictly compliant with the NIT requirement of being based on audited accounts for FY 2024-25

Source reference: para. 6

To resolve the discrepancy and ensure the integrity of the process, the DDA took the stand that it would henceforth "strictly follow terms of the NIT"

Source reference: para. 8

The court accepted this undertaking, noting that for the impugned tender, the net worth certificate must be based on audited accounts for the relevant Financial Year 2024-25

Source reference: para. 8

This effectively bound the DDA to a uniform standard of compliance for all bidders, addressing the Petitioner’s grievance regarding discriminatory treatment.

Source reference: no citation
05

Holding

The High Court disposed of the petition and pending applications by recording the DDA’s statement that it shall strictly adhere to the NIT terms

The Court held that for the 7th impugned tender, the net worth certificate must be as per the audited accounts for the Financial Year 2024-25

Source reference: para. 8

No specific orders were passed regarding the other seven tenders as their technical bids had not yet been opened

Source reference: para. 2, 8
Delhi High Court

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M/S Yamuna EnterprisesvsDelhi Development Authority & Anr.

Delhi High Court · April 01, 2026

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