‘Projects Of National Importance’: Delhi HC Upholds DRDO Decision To Bar Entities With Pending Criminal Cases From Defence Contracts

‘Projects Of National Importance’: Delhi HC Upholds DRDO Decision To Bar Entities With Pending Criminal Cases From Defence Contracts

Case: Trident Infosol Pvt Ltd V Union Of India & Ors.

Coram: Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad

Case No.: W.P.(C) 5292/2022

Court Observation: “Keeping in mind the nature of tender, it cannot be said that the Impugned condition, which warrants that an undertaking should be given by the Bidder firm/company/vendor that in the past they have never been banned/debarred for doing business dealings with Ministry of Defence/Govt. of India/ any other Govt. organisation and that there is no enquiry going on by CBI/ED/any other Govt. agency against them, is bad in law or is violative of Article 14 of the Constitution of India,”

“As has been noted, the present tender was floated by Labs of Respondent No. 2 [DRDO], which are specialised labs engaged in research pertaining to critical defence technologies and systems. It is in this context that the Respondent Nos. 3 and 4 [DRDO Labs] have imposed the Impugned Condition to sift through entities which have criminal proceedings/investigation pending against them. This condition is imperative to maintain the integrity of such projects which deal with matters of national importance, security and are of immense public importance,”

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