W.P.(C)/5/2026 of INTERNATIONAL VISA SERVICES PVT LTD FORMERLY KNOWN AS IVS LANKA PVT LTD Vs UNION OF INDIA
W.P.(C) 5/2026 Page 1 of 31
$
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Judgment Reserved on : 18.02.2026
Judgment delivered on: 30.03.2026
Judgment uploaded on: 30.03.2026
+ W.P.(C) 5/2026 & CM APPL. 13/2026
INTERNATIONAL VISA SERVICES PVT LTD FORMERLY
KNOWN AS IVS LANKA PVT LTD .....Petitioner
versus
UNION OF INDIA .....Respondent
Advocates who appeared in this case
For the Petitioner : Mr. Samar Bansal, Mr. Siddharth Nath, Mr.
Asjad Hussain and Mr. Anunay Chowdhary,
Advs.
For the Respondent : Mr. Shashank Dixit, CGSC, Mr. Arnav
Mittal, GP and Mr. Kunal Raj, Adv.
CORAM:
HON’BLE MR. JUSTICE V. KAMESWAR RAO
HON’BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
JUDGMENT
MANMEET PRITAM SINGH ARORA, J.
1. The present writ petition under Article 226 of the Constituti on of
India challenges the disqualification of the Petitioner, from part icipating in
the tender process for outsourcing consular services [‘CPV services’] in Sri
Lanka, communicated through an e-mail dated 29.12.2025, with reference to
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the Mandatory Eligibility Criteria [‘MEC’] of the Request for Proposal
[‘RFP’] dated 27.11.2025 , whereby the Petitioner has been declared
ineligible on the ground that it does not satisfy the MEC prescribed in
Chapter V of the RFP dated 27.11.2025.
2. The facts relevant for deciding the controversy as stated in the petition
are set out hereunder: -
2.1 The Petitioner is a company incorporated in Sri Lanka, which for
more than 13 years has been operating visa, passport and cons ular
outsourcing centers on behalf of Indian Missions in Sri Lanka.
2.2 Pursuant to award of a tender for outsourcing CPV services, an
Agreement dated 03.06.2013 was executed between a distinct ent ity called
IVS Global Services Pvt. Ltd. [‘IVS Global’] and the Respondent for
providing visa, passport and consular services at designated centers in Sri
Lanka [‘2013 Agreement’].
It is pertinent to note that IVS Global is not a party t o these
proceedings.
2.3 It is stated that to comply with the tender requirements and applicable
local laws for discharge of services under the 2013 Agreement, IVS Global
took steps to incorporate the Petitioner herein in Sri Lanka, whi ch was then
known as IVS Lanka Pvt. Ltd. [‘IVS Lanka’/‘Petitioner’].
Pursuant to the incorporation of IVS Lanka/Petitioner, an MOU dated
04.07.2013 [‘MOU’] was executed between IVS Global and IVS
Lanka/Petitioner for rendering CPV services in Sri Lanka.
IVS Global submitted a copy of the aforesaid MOU to the
Respondent under cover of the letter dated 12.08.2013, with th e submission
that IVS Lanka has been incorporated for rendering the CPV serv ices to the
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High Commission.
2.4 It is stated that the Respondent formally recognised IVS
Lanka/Petitioner as the authorised service provider. It is stated that a press
release was issued on 29.08.2013 by the Consulate General of Indi a, Jaffna,
informing the public that IVS Lanka/Petitioner would be acce pting visa,
passport and consular applications.
It is stated that IVS Lanka/Petitioner obtained necessary statut ory
registrations in Sri Lanka, including VAT registration and Emp loyees’
Provident Fund registration, demonstrating compliance with local laws.
2.5 It is stated that the original 2013 Agreement between IVS Glo bal and
the Respondent was periodically extended through extension/ addendum
agreements dated 23.10.2017, 18.11.2022 and 06.05.2025, and the la st
extension continued the contract till 31.10.2025. The extension s, though in
the name of IV Global, were executed by IVS Lanka/Petitioner and in 2022,
2024 and 2025 bank guarantees required to be furnished to t he Respondent,
were furnished by IVS Lanka/Petitioner.
2.6 It is stated that, throughout the contractual period of 2013 till
31.10.2025, the Respondent regulated and approved the operation s
undertaken by IVS Lanka/Petitioner. The Petitioner relies upon the acts of
the Respondent in granting approvals address to IVS Lanka/Pet itioner for
levy of SMS charges, issuance of count confirmations certifying th e number
of applications processed by the Petitioner, fee confirmations confirming the
fees collected by the Petitioner and appreciation letters issued by the
Respondent to the Petitioner. It is stated that all these acti ons of the
Respondent and the documents issued evidence that it recognized
Petitioner’s operational role in performance of the 2013 Agreement.
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2.7 It is stated that the Respondent issued an RFP dated 03.02.2 025 [‘first
RFP’] for outsourcing consular services at Sri Lanka. The Petitioner
participated in the said tender process and was found technical ly eligible,
secured a technical score of 75.5, though another bidder1 was declared L1.
Aggrieved by the proposed award in favor of the L1, the Petit ioner
filed W.P.(C) 4674/2025, wherein this Court directed that the tender should
not be awarded, without verification of antecedents of the bidders.
2.8 Separately, the Respondent issued a Penalty Order dated 14.11.20 25
under the 2013 Agreement on the allegations that IVS Global and IVS Sri
Lanka had charged exorbitant and inadmissible service fee from th e
customers. The said penalty order was addressed to both IVS Glo bal and
IVS Lanka. The Respondent also sought to invoke the bank guara ntee
furnished by IVS Lanka/Petitioner.
The said penalty order has been challenged by both IVS Global and
IVS Lanka in W.P.(C) 18164/2025. The operation of the penalty orde r has
been kept in abeyance by the Court vide order dated 11.12.2 025 passed in
W.P.(C) 18164/2025.
2.9 The Respondent thereafter issued a fresh RFP dated 27.11.2025
[‘second RFP’] for CPV services in Sri Lanka containing eligibility criteria
identical to the first RFP.
This is the RFP which is the subject matter of the present proceedings.
2.10 IVS Global vide e-mail dated 10.12.2025 addressed to the
Respondent, clarified that it would not participate in the second RFP.
IVS Lanka/Petitioner submitted its bid for participating in the second
RFP on 26.12.2025. In this bid, it relied upon the experien ce of rendering
1 Alankit Assignments Ltd.
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CPV services under the 2013 Agreement.
2.11 By e-mail dated 27.12.2025, the Respondent stated that the experience
and revenue accrued under the 2013 Agreement was attributable to IVS
Global and could not be attributed to the IVS Lanka/Petitioner . It was stated
that the Petitioner therefore does not meet the criteria of Chapter V, Article
1(i). The Petitioner was granted time until 29.12.2025 to su bmit its
clarification to the aforesaid e-mail.
2.12 The Petitioner submitted a response dated 28.12.2025 relying up on
the documentary confirmations issued by the Respondent for the services
rendered under the 2013 Agreement and requesting an opportunity of
hearing and technical presentation.
The Petitioner also relied upon the grant of the contract for CPV
services to SGIVS Global LLC by Embassy of India at Abu Dh abi, UAE, to
seek parity. It was stated that in identical facts IVS Global had been awarded
the contract for UAE in 2013, which was subsequently assigned to the local
entity namely IVS Global LLC, which was renamed as SGIVS Global LLC.
2.13 It is stated that the Respondent vide e-mail dated 29.12. 20252 granted
an opportunity to the Petitioner for clarification or appearance . The
Petitioner issued its response on 29.12.2025 3 and sought 10 days’ time to
present its defence. However, by another e-mail dated 29.12.20 254
Respondent rejected the Petitioner’s explanation and disqualified it from the
tender process holding that IVS Lanka/Petitioner fails to meet th e MEC
mentioned in Chapter V of the RFP. This e-mail dated 29.12.2025 h as been
impugned in these proceedings.
2 Issued at 09:01 A.M.
3 Issued at 14:42
4 Issued at 18:42 P.M.
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Submissions by the Petitioner
3. Learned counsel for the Petitioner submitted that the Responde nt has
wrongly interpreted the MEC of the second RFP. The Petitioner sa tisfies the
requirements relating to experience, operation of centers and finan cial
credentials, supported by documentary evidence.
3.1 He submitted that the Respondent has consistently recognised th e
Petitioner as the operational entity, including through exten sion agreements,
approvals, public communications, and acceptance and invocation o f bank
guarantees.
3.2 He submitted that IVS Global has expressly withdrawn from
participation in the second RFP; therefore, there is no possibilit y of two
entities claiming the same experience, thus, rendering the Respondent’s
objection untenable.
3.3 He submitted that the Petitioner has produced a Chartered
Accountant’s certificate certifying turnover, and the Respondent cannot
arbitrarily reject financial credentials.
3.4 He submitted that the sequence of events; including the earlie r writ
petition, penalty order, invocation of bank guarantee and sudd en eligibility
objections; demonstrates malice and a retaliatory attempt to excl ude the
Petitioner from the tender process.
3.5 He further urged that in the first RFP dated 03.02.2025, contain ing
identical eligibility criteria, the Respondent had declared the Peti tioner
technically qualified, thereby acknowledging its experience. Th e Petitioner
also relies upon the counter affidavit filed by the Respondent in W.P. (C)
4674/2025 titled as M/s I.V.S. Lanka Private Limited v. Union of India &
Anr., wherein Respondent unequivocally admitted that Petitioner herein was
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technically qualified bidder. The subsequent disqualificatio n in the second
RFP is therefore alleged to be arbitrary and inconsistent.
3.6 He submitted that the Respondent has selectively applied the ‘main
contractual party’ rationale to exclude the Petitioner, while accepting similar
operational structures in other jurisdictions (e.g., UAE), thereby v iolating
the principle of equality and non-arbitrariness.
Submissions by the Respondent
4. Learned counsel for the Respondent submitted that the IVS
Lanka/Petitioner was not an independent entity but functi oned merely as an
extended operational arm of IVS Global, as evident from the MOU dat ed
04.07.2013. He submitted that the MOU expressly provide s that IVS Lanka
would carry out day-to-day operations under the supervision , control and
guidance of IVS Global.
4.1 He submitted that the Clauses of the MOU show that financial ,
banking, audit and strategic decisions were controlled by IVS Global, while
IVS Lanka was permitted only to maintain a local bank account fo r
operational purposes under IVS Global’s oversight.
4.2 He submitted that the MOU also imposed exclusivity for fiv e years,
preventing IVS Lanka from independently providing CPV services to any
diplomatic mission without the written consent of IVS Global, which further
depicts its subordinate role.
4.3 He submitted that since contractual obligations, financial ris k and
responsibility rested with IVS Global, the experience under the 2013
Agreement accrued solely to IVS Global, and not to IVS Lanka.
4.4 Relying on AG Construction v. Food Corporation of India 5, he
5 Judgment dated 10.02.2021 in CWP No. 20130 of 2020; (NOC) 507 (P.&H.)
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submitted that a bidder cannot rely on the experience of a third party or
parent entity once it is a separate legal entity.
4.5 He submitted that the contract was executed exclusively between the
Union of India/Respondent and IVS Global, and IVS Lanka/Petiti oner was
neither the contracting party nor independently recognised by the employer
for contractual purposes. He submitted that consequently, in the absence of
three years’ independent experience in its own name, IVS Lanka /Petitioner
failed to meet the MEC and was rightly disqualified.
4.6 He stated that the MEC in public tenders must be strictly con strued
and cannot be diluted by liberal interpretation. Reliance is placed on
Agmatel India Pvt. Ltd. v. Resoursys Telecom6, where the Supreme Court
held that tender conditions must be applied exactly as framed.
4.7 The Respondent further relied on Tata Cellular v. Union of India 7,
Jagdish Mandal v. State of Orissa 8, Bharat Coking Coal Ltd. v. AMR
Dev Prabha9, and Tata Motors Ltd. v. Brihan Mumbai Electric Supply
Undertaking10, which hold that judicial review in tender matters is limit ed
to examining the decision-making process and courts should exercise
restraint.
4.8 He also relied on Rohde & Schwarz GmbH v. Airport Authority of
India11, wherein it was held that the tendering authority is not required to
undertake detailed investigations into bidders’ claims beyond the documents
submitted.
4.9 He stated that since the tender requires three years’ experience of th e
6 (2022) 5 SCC 362
7 (1994) 6 SCC 651
8 (2007) 14 SCC 517
9 (2020) 16 SCC 759
10 2023 SCC OnLine SC 671
11 2013 SCC OnLine Del 4415
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bidding entity itself, and the Petitioner seeks to rely on the experience of
IVS Global, a separate legal entity, permitting such reliance wou ld amount
to rewriting the tender conditions.
4.10 He submitted that the Petitioner’s reliance on the case of SGIV S
Global LLC (Abu Dhabi, UAE) is misplaced. He clarified that each RFP has
its own eligibility conditions, and the circumstances of the Abu Dhabi tender
have no relevance to the present RFP. He stated that in the UAE cas e, there
was merely a formal name change of the same legal entity, and SGIVS
Global LLC did not rely on the experience of IVS Global Servi ces Pvt. Ltd,
and in contrast, IVS Global Services Pvt. Ltd. continues to exis t as a
separate entity, while the Petitioner seeks to appropriate its experience
without any assignment or transfer, making the situations factual ly and
legally distinguishable.
4.11 He placed reliance on Jagdish Mandal v. State of Orissa (supra),
where the Supreme Court held that failure to grant a hearing before rejecting
a bid does not automatically render the decision illegal or arbit rary,
particularly where the authority is merely treating the bid as defective.
4.12 He submitted that in the present case, the Respondent did not blacklist
or penalise the Petitioner but merely disqualified the bid for no n-fulfilment
of the MEC. He stated that the Petitioner was also given an opportunity to
explain through an e-mail dated 27.12.2025, and therefore, the request for a
post-decisional hearing was discretionary and not mandatory.
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Findings and Analysis
5. We heard the learned counsel for the parties and perused the record.
6. The controversy in the present petition centres around Chapter V,
Clause 1(i) of the second RFP, which prescribed the MEC to be satisfi ed by
the bidder and reads as under:
“The bidder must meet the following mandatory conditions: (i) The
Bidding Company must have sound financial credentia ls of their own
without the involvement or help from a third party in the form of
financial resources such as subsidies and must also have at least 3
(three) years’ experience during the last five-year period(Jan- 2020-
Dec 2024),in operating a Centre for CPV services on behalf of a
Diplomatic Mission of the Government of India or an y other foreign
Government dealing with at least an average 100 app lications per
working day. Verifiable details of the experience of operating such
centers must be provided”
[Emphasis supplied]
The dispute in this writ petition pertains to the satisfact ion of the
experience criteria of this clause.
7. The issue that arises for consideration before this Court is wheth er, in
law, the IVS Lanka/Petitioner, can validly rely upon and treat as i ts own the
experience of rendering CPV services in Sri Lanka under the 2013
Agreement executed between the Respondent and IVS Global, on the
premise that it functioned as an extended arm of IVS Global, for t he
purposes of satisfying the MEC relating to experience as prescri bed under
Chapter V, Clause 1(i) of the second RFP. It further falls for considerat ion
whether the decision of the Respondent in holding that the Peti tioner is not
entitled to claim such experience as its own is arbitrary, irrational, mala fide,
or illegal so as to warrant interference by this Court in exerci se of its
jurisdiction under Article 226.
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8. It is the stand of the Petitioner that although the 2013 Agreeme nt was
executed between the Respondent and IVS Global, the actual on-gr ound
execution of CPV services was carried out by IVS Lanka/Petitioner to the
knowledge of the Respondent and with its approval. In suppor t of this
submission, reliance is placed by the Petitioner on following documents in
its written submissions: -
“4.1 IVS Global was the Contractor but the Petitioner was
admittedly the service provider for CPV Services under agreement
dated 03.06.2013. Following documents are relied upon in this
regard:
a. MoU dated 04.07.2013 between IVS Global & the Petitioner
along with communication dated 12.08.2013 apprising the
Respondent of the same [Ann P-3 (Colly.) @p. 65 / PDF 70, WP]
Note: The said MOU, of which the Respondent admittedly had
notice as it is not disputed in the Counter, makes it clear that
Petitioner would earn and retain any experience earned [Cl. 8, p.
68, WP].
b. Press Release dated 29.08.2013 [Ann P-4 @ p. 71/PDF 76, WP]
c. Count Confirmations [Ann P-7 (Colly.) @ p. 75/PDF 80, WP]
d. Fee confirmations [Ann P-8 (Colly.) @ p. 78/PDF 83, WP]
e. Various appreciation letters [Ann P-9 (Colly.) @ p. 81, PDF
86]”
8.1 It is contended that these documents unequivocally demonstrat e that
IVS Lanka/Petitioner was the entity actually performing the CPV services in
Sri Lanka and had processed a substantial volume of applicatio ns over a
period extending from 2013 to 2025. And thus, the Petitio ner has the
requisite experience of operating a centre for CPV services. The Petitioner
submits that the condition of experience in MEC Chapter V Clause 1(i)
ought to be interpreted by the Respondent based on actual perfor mance,
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rather than only on a strict reading of the contract.
9. Conversely, the Respondent submits that IVS Lanka/Petitioner cannot
claim the benefit of experience under the 2013 Agreement, as IVS
Lanka/Petitioner was not the contracting party and function ed merely as an
extended operational arm of IVS Global.
9.1 Reliance is placed by the Respondent on the MOU executed between
IVS Global and IVS Lanka/Petitioner, particularly Clause 3.2, which
stipulates that the IVS Lanka/Petitioner shall operate under the s upervision,
control and guidance of IVS Global. The Clause reads as under: -
“3.2 IVS Lanka shall act as the extended operational arm of IVS
Global and shall carry out day-to-day operations under the
supervision, control, and guidance of IVS Global.”
9.2 Further reliance is placed on Clauses 5 and 6 of the MOU to
demonstrate that financial, strategic and operational control ves ted entirely
with IVS Global. The Clauses read as under: -
“5. Banking and Financial Operations
5.1 IVS Lanka shall open and maintain a local bank account in Sri
Lanka exclusively for handling local operational transactions related
to the CPV services.
5.2 Financial operations shall be conducted transparently and in
accordance with applicable laws and mutually agreed financial
controls.
5.3 IVS Global shall have oversight rights over financial reporting
related to services rendered under this Agreement.
5.4 IVS Global shall have the right to:
• Review financial records
• Conduct audits
• Seek compliance certifications
6. Exclusivity and Relationship Period
6.1 IVS Lanka shall work exclusively as an arm of IVS Global for a
period of Five (5) years from the effective date of this MOU.
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6.2 During this period, IVS Lanka shall not independently provide
CPV services to HCI Colombo or any similar mission or to any
diplomatic mission without the written consent of IVS Global.”
9.3 It is contended that the obligations, risks and liabilities under the 2013
Agreement were to be borne by IVS Global, and therefore, any experience
arising therefrom accrues solely to IVS Global. The Respondent emphasises
that the 2013 Agreement was executed exclusively with IVS Glo bal, there
has been no assignment or novation of the said Agreement in fav our of the
Petitioner, and the experience certificate for the 2013 Agreement has been
issued by the Respondent only in favour of IVS Global.
9.4 It is stated that the appreciation letters issued by the Resp ondent in
favour of the IVS Lanka/Petitioner cannot be a substitute for the experience
certificate which has been issued exclusively to IVS Global. It is stated that
in the RFPs issued by Union of India for other embassies abroad, IVS
Global has applied and in its bid claimed the experience of t he 2013
Agreement for Sri Lanka.
9.5 It is contended that the eligibility criteria has to be strict ly construed
and permitting IVS Lanka/Petitioner to rely on the experience of IVS
Global, a separate legal entity, would amount to diluting the tender
conditions.
10. The law with regard to the scope of judicial review in matters of
tenders has been well settled by the Supreme Court in a multitude of
judgments. In Tata Cellular v. Union of India (supra), the Supreme Court
weighed the need for administrative discretion and restraint on judicial
intervention, and observed as under: -
“94. (1) The modern trend points to judicial restraint in
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administrative action.
(2) The court does not sit as a court of appeal but merely reviews the
manner in which the decision was made.
(3) The court does not have the expertise to correct the
administrative decision. If a review of the adminis trative decision is
permitted it will be substituting its own decision, without the
necessary expertise, which itself may be fallible.
(4) The terms of the invitation to tender cannot be open to judicial
scrutiny because the invitation to tender is in the realm of contract.
(5) The Government must have freedom of contract. In other words,
a fair play in the joints is a necessary concomitant for an
administrative body functioning in an administrative sphere or quasi-
administrative sphere. However, the decision must n ot only be tested
by the application of Wednesbury principle of reasonableness
(including its other facts pointed out above) but m ust be free from
arbitrariness not affected by bias or actuated by mala fides.
(6) Quashing decisions may impose heavy administrative burden on
the administration and lead to increased and unbudgeted
expenditure.”
11. Following this decision, the Supreme Court in Jagdish Mandal
(supra) further sharpened the parameters of scope of judicial inte rference in
tender matters, held as under: -
“22. Judicial review of administrative action is intended to prevent
arbitrariness, irrationality, unreasonableness, bia s and mala fides. Its
purpose is to check whether choice or decision is made “lawfully”
and not to check whether choice or decision is “sound”. When the
power of judicial review is invoked in matters relating to tenders or
award of contracts, certain special features should be borne in mind.
A contract is a commercial transaction. Evaluating tenders and
awarding contracts are essentially commercial funct ions. Principles
of equity and natural justice stay at a distance. If the decision relating
to award of contract is bonafide and is in public interest, courts will
not, in exercise of power of judicial review, interfere even if a
procedural aberration or error in assessment or prejudice to a
tenderer, is made out. The power of judicial review will not be
permitted to be invoked to protect private interest at the cost of
public interest or to decide contractual disputes. The tenderer or
contractor with a grievance can always seek damages in a civil court.
Attempts by unsuccessful tenderers with imaginary grieva nces,
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wounded pride and business rivalry, to make mountai ns out of
molehills of some technical/procedural violation or some prejudice
to self, and persuade courts to interfere by exercising power of
judicial review, should be resisted. Such interfere nces, either interim
or final, may hold up public works for years, or delay relief and
succour to thousands and millions and may increase the project cost
manifold. Therefore, a court before interfering in tender or
contractual matters in exercise of power of judicia l review should
pose to itself the following questions:
(i) Whether the process adopted or decision made b y the
authority is mala fide or intended to favour someone;
OR
Whether the process adopted or decision made is so arbitrary
and irrational that the Court can say: “the decision is such that no
responsible authority acting reasonably and in acco rdance with
relevant law could have reached.”;
(ii) Whether public interest is affected.
If the answers are in the negative, there should be no interference
under Article 226. Cases involving blacklisting or imposition of
penal consequences on a tenderer/contractor or distribution of State
largesse (allotment of sites/shops, grant of licens es, dealerships and
franchises) stand on a different footing as they ma y require a higher
degree of fairness in action.”
[ Emphasis Supplied]
12. Recently, in the judgment of TATA Motors Limited v. Brihan
Mumbai Electric Supply and Transport Undertaking (BEST) & Ors. 12,
the Supreme Court while referring to the aforesaid judgments once again
cautioned the the Constitutional Courts to exercise restraint while exercising
the power of judicial review in tender matters and held as under: -
“50. This Court being the guardian of fundamental rights is duty-
bound to interfere when there is arbitrariness, irrationality, mala
fides and bias. However, this Court has cautioned time and again that
12 (2023) 19 SCC 1.
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courts should exercise a lot of restraint while exercising their powers
of judicial review in contractual or commercial matters. This Court is
normally loathe to interfere in contractual matters unless a clear-cut
case of arbitrariness or mala fides or bias or irrationality is made out.
One must remember that today many public sector undertakings
compete with the private industry. The contracts entered into
between private parties are not subject to scrutiny under writ
jurisdiction. No doubt, the bodies which are State within the
meaning of Article 12 of the Constitution are bound to act fairly and
are amenable to the writ jurisdiction of superior courts but this
discretionary power must be exercised with a great deal of restraint
and caution. The courts must realise their limitations and the havoc
which needless interference in commercial matters can cause. In
contracts involving technical issues the courts sho uld be even more
reluctant because most of us in Judges’ robes do no t have the
necessary expertise to adjudicate upon technical issues beyond our
domain. The courts should not use a magnifying glass while
scanning the tenders and make every small mistake a ppear like a big
blunder. In fact, the courts must give “fair play in the joints” to the
government and public sector undertakings in matters of contract.
Courts must also not interfere where such interference will cause
unnecessary loss to the public exchequer. (See Silppi Constructions
Contractors v. Union of India [Silppi Constructions
Contractors v. Union of India, (2020) 16 SCC 489].)”
[Emphasis Supplied]
13. The Supreme Court in N.G. Projects Limited v. Vinod Kumar Jain
& Ors. 13, has further restricted the scope of judicial interference in tender
matters and held that judicial review is limited only to checking fai rness of
the decision-making process, not the merits, and, held that even in cases of
arbitrariness or mala fides , Courts should avoid stopping the tender and
instead leave the aggrieved party to seek damages, since interference harm s
public interest and increases costs. Relevant part of the judgment reads as
under: -
13 (2022) 6 SCC 127
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23. In view of the above judgments of this Court, the writ court
should refrain itself from imposing its decision over the decision of
the employer as to whether or not to accept the bid of a tenderer. The
Court does not have the expertise to examine the terms and
conditions of the present day economic activities of the State and this
limitation should be kept in view. Courts should be even more
reluctant in interfering with contracts involving t echnical issues as
there is a requirement of the necessary expertise to adjudicate upon
such issues. The approach of the Court should be not to find fault
with magnifying glass in its hands, rather the Court should examine
as to whether the decision-making process is after complying with
the procedure contemplated by the tender conditions. If the Court
finds that there is total arbitrariness or that the tender has been
granted in a mala fide manner, still the Court should refrain from
interfering in the grant of tender but instead rele gate the parties to
seek damages for the wrongful exclusion rather than to injunct the
execution of the contract. The injunction or interference in the tender
leads to additional costs on the State and is also against public
interest. Therefore, the State and its citizens suf fer twice, firstly by
paying escalation costs and secondly, by being deprived of the
infrastructure for which the present day Governments are expected to
work.
[Emphasis Supplied]
14. Keeping in view the aforesaid parameters of law for judicial re view,
we shall now proceed to decide the factual issue of the present petition.
I. 2013 Agreement
15. It is an admitted position that the 2013 Agreement, as well as its
subsequent extensions, were executed exclusively between the Respondent
and IVS Global. The last extension was executed on 06.05.20 25 which
expired on 31.10.2025.
The IVS Lanka/Petitioner has relied upon the fact that extensions
dated 23.10.2017, 18.11.2022 and 06.05.2025 was executed by its officer on
behalf of IVS Global. In the considered opinion of this Court, t he execution
of the extensions dated 23.10.2017, 18.11.2022 and 06.05.2025 by the
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officer of IVS Lanka/Petitioner does not make it a party to the cont ract, as
IVS Lanka/Petitioner itself understood that it was signing for and on behalf
of IVS Global. This fact is evident from the averments made by IVS
Lanka/Petitioner in CM No. 53353/2025 filed in W.P.(C) 4674/2025 seeking
further extension of the 2013 Agreement in favour of IVS Global.
Thus, indisputably the privity of contract under the 2013 A greement
remained only between Petitioner and IVS Global. This fact is also in
conformity with the stand taken by IVS Global in W.P.(C) 18164/20 25 filed
before the coordinate Bench of this Court, as recorded in order dated
11.12.2025.
16. The 2013 Agreement, at Clause 9, stipulated that IVS Global can not
assign its obligations under the Agreement without the prio r written
approval of the Respondent. It is a matter of record that there has been no
assignment of the 2013 Agreement by IVS Global in favour of IVS
Lanka/Petitioner. As noted above, the last extension was executed with IVS
Global on 06.05.2025 and expired on 31.10.2025.
17. Thus, in law the 2013 Agreement and its extensions remained
exclusively between the Respondent and IVS Global, and IVS
Lanka/Petitioner is not a party thereto.
II. MOU 04.07.2013
18. The MOU dated 04.07.2013 clearly delineates the relationship
between IVS Global and the IVS Lanka/Petitioner. Clauses thereof est ablish
that the Petitioner functioned under the supervision and cont rol of IVS
Global; strategic, financial and operational decisions were taken by IVS
Global; and client ownership and contractual rights of the 201 3 Agreement
remained vested with IVS Global. Clauses 3.2, 5 and 6 relied upo n by the
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Respondent are relevant and show that the services were being pro vided by
IVS Lanka/Petitioner under the direct control and supervision of IVS
Global.
19. In view of Clauses 3.2, 5 and 6 of the MOU, the role of IVS
Lanka/Petitioner is more appropriately characterised as that of an executing
or facilitating entity acting under the supervision and control of the principal
contracting party i.e., IVS Global, rather than an independent contr acting
party vis-à-vis the Respondent.
20. In particular, Clause 3.4 of the MOU stipulates that IVS Global would
retain final operational control, client relationship ownership , and authority
over critical aspects of the service delivery framework. The Clause reads as
under: -
“3.4 IVS Global shall retain and overlook:
• Final operational control
• Client relationship ownership
• Authority over SOPs, IT systems, branding, and reporting procedures.”
[Emphasis supplied]
21. Clause 3.4 clearly records that the client relationship ownership of the
2013 Agreement remained with IVS Global. In other words, the IVS
Lanka/Petitioner is barred from claiming or representing that Respon dent as
its client. As per record, IVS Global is admittedly claiming the experience of
the CPV services rendered at Sri Lanka in its bid documents filed for other
missions and embassies all over the world and IVS Lanka/Petition er is not
objecting to the said claim of IVS Global. This confirms that IVS
Lanka/Petitioner admits that the client ownership of the 201 3 Agreement
vests with IVS Global.
22. We are of the considered opinion that IVS Lanka/Petitioner’s
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assertion that it is entitled to claim experience of the CPV s ervices rendered
under the 2013 Agreement is expressly barred as per Clause 3.4 an d Clause
6.2 of the MOU.
III. No parity with UAE entity/SGIVS Global LLC
23. IVS Lanka/Petitioner has placed reliance on the allotment of the
contract in favour of M/s SGIVS Global LLC in the UAE and seeks parity;
however, upon perusal of the order dated 02.05.2025 issued by the High
Commission of India at Abu Dhabi, this Court finds that t he factual position
therein is materially distinct. The order sets out the following facts: -
“3. The Embassy's response, with respect to the matters pertaining to
the current contract for outsourcing of the attestation services at the
Embassy of India, Abu Dhabi and the Consulate General of India,
Dubai, is as follows:
a) The Embassy of India, Abu Dhabi signed an agreement for
outsourcing of attestation services with M/s. IVS Global Private
Services Ltd, a registered company in India, on 19" November 2012.
The agreement was valid for a period of three years from 2*d January
2013 till 15 January 2016 which has been extended subsequently. In
order to execute the agreement, a local company named M/s. IVS
Global LLC having Licence No. CN-1485100 was registered on
21/02/2013.
b) It was brought to the attention of the Embassy that M/s. IVS Global
Private Services Ltd split its business operations and its GCC business
were transferred to the local company M/s. IVS Global LLC. The
change in shareholding of the two companies was also highlighted. On
18 December 2019, at the request of M/s. IVS Global LLC and no-
objection from M/s. IVS Global Private Services Ltd, the agreement
for the extension period from 1 January 2020 to 31 December 2021,
was signed in the name of M/s. IVS Global LLC, instead of M/s. IVS
Global Private Services Ltd. The subsequent agreements for the
extension periods in 2022, 2023 and 2024 were signe d between
Embassy and M/s. IVS Global LLC.
c) On August 27, 2024, the company had conveyed its request to
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amend its trade name in UAE from M/s. IVS Global LLC to M/s.
SGIVS Global LLC. The request was approved and the agreement for
the extension period January 1, 2025 to June 30, 2025 was signed in
the name of M/s. SGIVS Global LLC.”
The aforesaid communication demonstrates that the original agreemen t
dated 19.11.2012 was initially executed with M/s IVS Global Private
Services Ltd., and thereafter, pursuant to a conscious and documente d
restructuring of business operations, the GCC segment was transferred by
M/s IVS Global to the locally incorporated entity, M/s IVS Global LLC.
Essentially, this transition was not merely operational but was formally
recognised by the contracting authority i.e., Embassy of Indi a at Abu Dhabi,
UAE, which, upon request and with the express no-objection of the original
contracting entity, executed subsequent extension agreements direc tly in
favour of M/s IVS Global LLC. This was followed by a further appr oved
change in trade name to M/s SGIVS Global LLC, in whose favour late r
extensions were granted. The aforesaid facts clearly evidence a case of
written assignment/novation of contractual rights by the competent authority
in favour of the local entity, thereby conferring upon M/s SGIVS Global
LLC contractual status in its own right.
24. Such a factual and legal framework is entirely absent in the present
case, where no assignment or novation of the 2013 Agreement has been
made in favour of IVS Lanka/Petitioner. As noted above, in the c ase of Sri
Lanka, IVS Global is asserting client ownership rights for the 2013
Agreement.
IV. Tendering authority is the best person to assess the experience claimed by
the bidder
25. The Petitioner/IVS Lanka has relied upon the judgment of the
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Supreme Court in New Horizons Limited v. Union of India & Ors. 14 and
in our considered opinion, paragraph 23 of the said judgment sheds light on
the issue arising for consideration in the present proceedings. This judgment
does recognise that criteria of experience and eligibility of the bid der may,
in certain circumstances, be evaluated by the tendering authorit y from a
commercial and pragmatic perspective, even though experience is not i n the
name of the bidder. Paragraph 23 reads as under: -
“23. Even if it be assumed that the requirement regarding experience
as set out in the advertisement dated 22-4-1993 inviting tenders is a
condition about eligibility for consideration of th e tender, though we
find no basis for the same, the said requirement regarding experience
cannot be construed to mean that the said experience should be of the
tenderer in his name only. It is possible to visualise a situation where a
person having past experience has entered into a partnership and the
tender has been submitted in the name of the partnership firm which
may not have any past experience in its own name. That does not
mean that the earlier experience of one of the partners of the firm
cannot be taken into consideration. Similarly, a company incorporated
under the Companies Act having past experience may undergo
reorganisation as a result of merger or amalgamatio n with another
company which may have no such past experience and the tender is
submitted in the name of the reorganised company. I t could not be the
purport of the requirement about experience that the experience of the
company which has merged into the reorganised company cannot be
taken into consideration because the tender has not been submitted in
its name and has been submitted in the name of the reorganised
company which does not have experience in its name. Conversely
there may be a split in a company and persons looking after a
particular field of the business of the company form a new company
after leaving it. The new company, though having persons with
experience in the field, has no experience in its n ame while the
original company having experience in its name lacks persons with
experience. The requirement regarding experience do es not mean that
the offer of the original company must be considered because it has
experience in its name though it does not have expe rienced persons
with it and ignore the offer of the new company because it does not
14 1995 1 SCC 478
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have experience in its name though it has persons having experience
in the field. While considering the requirement regarding experience it
has to be borne in mind that the said requirement is contained in a
document inviting offers for a commercial transaction. The terms and
conditions of such a document have to be construed from the
standpoint of a prudent businessman. When a busines sman enters
into a contract whereunder some work is to be performed he seeks
to assure himself about the credentials of the person who is to be
entrusted with the performance of the work. Such credentials are
to be examined from a commercial point of view which means that
if the contract is to be entered with a company he will look into
the background of the company and the persons who are in
control of the same and their capacity to execute the work. He
would go not by the name of the company but by the persons
behind the company. While keeping in view the past experience he
would also take note of the present state of affairs and the equipment
and resources at the disposal of the company. The same has to be the
approach of the authorities while considering a ten der received in
response to the advertisement issued on 22-4-1993. This would
require that first the terms of the offer must be e xamined and if they
are found satisfactory the next step would be to consider the
credentials of the tenderer and his ability to perf orm the work to be
entrusted. For judging the credentials past experie nce will have to be
considered along with the present state of equipmen t and resources
available with the tenderer. Past experience may no t be of much help
if the machinery and equipment is outdated. Conversely lack of
experience may be made good by improved technology and better
equipment. The advertisement dated 22-4-1993 when read with the
notice for inviting tenders dated 26-4-1993 does not preclude adoption
of this course of action. If the Tender Evaluation Committee had
adopted this approach and had examined the tender o f NHL in this
perspective it would have found that NHL, being a joint venture, has
access to the benefit of the resources and strength of its parent/owning
companies as well as to the experience in database management, sales
and publishing of its parent group companies because after
reorganisation of the Company in 1992 60% of the sh are capital of
NHL is owned by Indian group of companies namely, TPI, LMI,
WML, etc. and Mr Aroon Purie and 40% of the share capital is owned
by IIPL a wholly-owned subsidiary of Singapore Telecom which was
established in 1967 and is having long experience i n publishing the
Singapore telephone directory with yellow pages and other directories.
Moreover in the tender it was specifically stated t hat IIPL will be
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providing its unique integrated directory management system along
with the expertise of its managers and that the managers will be
actively involved in the project both out of Singap ore and resident in
India.”
[Emphasis Supplied]
26. In this judgment the Supreme Court highlighted that when the
tendering authority evaluates the experience of the bidder it not only looks at
the name of the company but also looks into the background of the company
and the people who are in control of the same and their capacity to execute
the work.
27. This Court notes that the Respondent has had direct dealing s with the
IVS Global and IVS Lanka/Petitioner for the entire duration 20 13-2025, and
has formed an opinion on the basis of its actual experience t hat, in the
absence of the supervisory control of IVS Global, IVS Lanka/Petitioner may
not possess the independent capacity to render the services in question. Such
an assessment, being essentially factual and commercial in nature, falls
within the domain of the tendering authority and in our consi dered opinion
ought not to be interfered in judicial review. This Court has no material
before it to form a contrary opinion and substitute it for the opinion
expressed, by the Respondent, on the basis of its actual experience.
28. The contention of IVS Lanka/Petitioner that the Respondent, thro ugh
various documents such as count confirmations, press releases, fee approvals
and appreciation letters, recognised the Petitioner’s role in the performance
of the 2013 Agreement, is persuasive at first blush.
29. These documents show that the Petitioner was engaged in the
execution or facilitation of services, which is a fact and not in dispute;
however, they do not alter the fundamental legal position that the services
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were rendered under the direct supervision and control of IVS Globa l, as
well as for and on behalf of IVS Global. However, the e-mail dat ed
10.12.2025 issued by IVS Global indicates that it shall no t be maintaining
any further oversight on IVS Lanka/Petitioner. In these facts, the stand taken
by the Respondent that Petitioner does not have experience to qualify the
MEC is a plausible view. We say this, as IVS Lanka/Petitioner seems to
overlook the significance of the oversight which IVS Global had and was
the fundamental basis of the Respondent accepting the services of t he IVS
Lanka/Petitioner.
30. Section 230 of the Indian Contract Act, 1872 embodies the principl e
that where an agent acts for a disclosed principal, the principal al one is
bound by and liable under the contract qua third parties. In t he present case,
IVS Lanka/Petitioner’s role was admittedly that of an executing entity acting
on behalf of and under the supervision of IVS Global, the d isclosed and
contracting principal, and not as an independent contracting party.
Consequently, any operational involvement or performance by IVS
Lanka/Petitioner may not qualify as contractual experience in its own right,
particularly in the absence of any assignment or transfer of contractual rights
in its favour. IVS Lanka/ Petitioner’s contention that actual performance
should override the contractual framework is untenable, as its rol e remains
as that of a facilitator under the supervision and control of the principal
contractor i.e. IVS Global and not as that of an entity p ossessing
independent contractual experience.
31. It is further pertinent that IVS Global is not a party to th e present
proceedings. It is also of considerable significance that IVS Global
continues to exist as a separate and independent legal enti ty and, as
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contended by the Respondent, is itself asserting and relying upon the
experience emanating from the very same 2013 Agreement in other tender
processes. The Respondent has specifically pointed out that i n a separate
tender floated for the High Commission of India at Singapore, bot h IVS
Global and the present Petitioner (IVS Lanka) have independen tly
participated by submitting their respective organisational profi les, each
relying upon the experience derived from the Sri Lanka 2013 Agreement . It
is pertinent to note that the Petitioner has not denied in its rejoinder, the
averments made by the Respondent with respect to the dual claim by IV S
Global and IVS Lanka for Singapore tender.
32. The Respondent has also placed reliance on a communication dated
19.04.2024 issued by IVS Global, wherein it has unequivocall y represented
itself as the service provider at the Mission in Sri Lanka; signif icantly, the
said communication has been authored by Mr. Vivek Verma, CEO, who
now represents IVS Lanka/Petitioner in the present proceedings , thereby
lending further weight to the Respondent’s contention regardi ng the
attribution of contractual experience of the 2013 agreement bei ng claimed
by IVS Global.
33. Such a situation, where two distinct legal entities simulta neously seek
to derive eligibility from a single contract (2013 Agreement) executed
exclusively with one of them, would run contrary to the fun damental
principles governing competitive bidding. The Respondent’s ap prehension
in this regard cannot be said to be unfounded, particularly in light of tender
conditions aimed at preventing cartelisation and ensuring fair competition.
V. Penalty order and W.P. acknowledging Petitioner as service provider
34. The Petitioner’s reliance on prior pleadings in W.P.(C) 4674 of 202 5
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and the penalty order dated 14.11.2025 to contend that it was acknowledged
as a service provider does not advance its case, as such recognition, at best,
reflects its role as an agent executing functions on behalf of IV S Global,
which alone remained the contracting principal and is itself as serting
ownership over the said experience.
35. Even the penalty order, when read in its entirety, reinforces this
position, inasmuch as the proceedings were initiated under the 2013
Agreement executed with IVS Global, and the primary obligation to justify
charges, respond to notices, and discharge liability, including deposit of the
penalty amount, was cast upon IVS Global. The reference to IVS Lanka
therein as a ‘locally registered entity’ does not elevate its status to that of an
independent contracting party but merely acknowledges its operat ional
involvement within the framework of the principal contract.
36. The fact that the Respondent chose to address or include IVS Lanka in
the penalty proceedings, or to extend the consequences thereof to the local
entity, cannot be construed as conferral of independent cont ractual rights or
attribution of experience, particularly when the contractual nexus , risk
allocation, and ultimate contractual liability continued to v est with IVS
Global. IVS Lanka/Petitioner had collected the charges which form the
subject matter of the penalty order and is therefore a necessary party in those
proceedings.
VI. First RFP Mistake and Ambiguity of relationship
37. Insofar as the Petitioner’s reliance on its technical qualification under
the first RFP dated 03.02.2025 is concerned, the same does not a dvance its
case. The Respondent has satisfactorily explained that such evalu ation
proceeded on an understanding that IVS Lanka/Petitioner conti nued to
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function under the organisational control of IVS Global. Howe ver, during
the evaluation of the second RFP dated 27.11.2025, the Respondent received
a communication dated 10.12.2025 from IVS Global clarifying that it would
not be participating in the tender, which led to the realisatio n that the
Petitioner was no longer operating under the supervision of IVS Gl obal,
thereby severing the erstwhile relationship between the enti ties. This
constitutes a material change in circumstances. An erroneous or in advertent
evaluation in a prior tender process of the first RFP does not opera te as an
estoppel against the Respondent from correctly interpreting and applying the
eligibility criteria in a subsequent tender, particularly where su ch correction
is necessitated to preserve the sanctity of the bidding process.
38. This Court notes that there is ambiguity with respect to the current
legal relationship between IVS Lanka/Petitioner and IVS Global. Th e
present petition is silent and even during arguments the Peti tioner was
unable to explain the nature of its legal relationship wi th IVS Global. The
reason for this ambiguity is unclear, however, IVS Global by its letter dated
10.12.2025 has communicated to the Respondent that it is not participating
in this tender process leading the Respondent to believe that IVS Lanka does
not have any managerial oversight from IVS Global; and in the se
circumstances if the Respondent believes that IVS Lanka/Petiti oner would
lack requisite expertise and not have the capacity to perform CPV s ervices,
is a view which is probable and this Court is not persua ded to set aside the
decision of disqualification taken by Respondent on this assumption.
39. The Supreme Court in Galaxy Transport Agencies v. New J.K.
Roadways15, held that the authority that authors the tender document is the
15 (2021) 16 SCC 808
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best person to understand and appreciate its requirements, and thus, its
interpretation should not be second-guessed by a court in ju dicial review
proceedings. The relevant paragraphs reads as under: -
“17. In accordance with these judgments and noting that the
interpretation of the tendering authority in this c ase cannot be said to
be a perverse one, the Division Bench [New JK Roadways v. UT of
J&K, 2020 SCC OnLine J&K 733] ought not to have interfered with it
by giving its own interpretation and not giving proper credence to the
word “both” appearing in Condition No. 31 of the NIT. For this
reason, the Division Bench’s conclusion that JK Roa dways was
wrongly declared to be ineligible, is set aside.
18. Insofar as Condition No. 27 of the NIT prescribing work
experience of at least 5 years of not less than the value of Rs 2 crores
is concerned, suffice it to say that the expert body, being the Tender
Opening Committee, consisting of four members, clea rly found that
this eligibility condition had been satisfied by the Appellant before us.
Without therefore going into the assessment of the documents that
have been supplied to this Court, it is well settled that unless
arbitrariness or mala fide on the part of the tendering authority is
alleged, the expert evaluation of a particular tender, particularly
when it comes to technical evaluation, is not to be second-guessed
by a writ court. Thus, in Jagdish Mandal v. State of Orissa [Jagdish
Mandal v. State of Orissa, (2007) 14 SCC 517] , this Court noted :
(SCC pp. 531-32, para 22)
……….”
[Emphasis Supplied]
40. The law is well settled that the author of the tender docu ment is the
best judge of its terms and the manner of their application. The Resp ondent,
being the procuring entity, is thus entitled to interpret the eligibility
conditions and assess the credentials of bidders in accordan ce with its
commercial understanding and requirements.
41. The contention of the Respondent that, since the contractual ri sks and
liabilities under the 2013 Agreement were borne exclusively by IVS Global,
the factum of execution of on-ground operations by IVS Lanka/Petit ioner
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would not, by itself, satisfy the requirement of experience, constitutes a
plausible and legally tenable interpretation of the eligibility condition.
42. The scope of judicial review under Article 226 in tender matters is
limited to examining the decision-making process and not the merits of the
decision itself. As laid down in Tata Cellular (supra) and Jagdish Mandal
(supra), interference is warranted only where the decision is shown t o be
arbitrary, mala fide, irrational or illegal.
In the facts of the present case, the interpretation adopted by the
Respondent, that the requisite experience claimed by the bidder mus t vest in
it as the contracting party and cannot be derived as an agent of a separate
legal entity (IVS Global) which supervised its operations, i s a plausible and
reasonable construction of the tender condition. While it ap pears that IVS
Global has, in multiple jurisdictions (including UAE), ad opted a model of
operating through locally incorporated entities, thereby blurrin g functional
roles, the absence of any formal assignment or novation remains
determinative of deciding the experience. In these circumstances, the
Respondent’s categorical refusal to recognise IVS Lanka/Petitioner as the
contracting party of the 2013 Agreement is consistent with sett led legal
principles and does not warrant interference in exercise of jurisdi ction under
Article 226.
43. This Court finds no mala fides, illegality, irrationality, or arbit rariness
in the impugned interpretation and is of the considered view that the
Petitioner has failed to establish that the decision dated 29.1 2.2025 warrants
interference under Article 226.
44. The writ petition is accordingly dismissed. Pending applicat ions, if
any, disposed of. No order as to costs.
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45. Interim order(s) stand vacated.
46. It is clarified that nothing observed in this judgment s hall have a
bearing on the rights and contentions of the parties in W.P. (C) 4674/2025
wherein penalty order dated 14.11.2025 is under challenge.
MANMEET PRITAM SINGH ARORA, J
V. KAMESWAR RAO, J
MARCH 30, 2026/AM
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