{"id":3875,"date":"2026-08-19T10:05:33","date_gmt":"2026-08-19T04:35:33","guid":{"rendered":"https:\/\/xpertslegal.com\/blog\/?p=3875"},"modified":"2026-08-19T10:05:33","modified_gmt":"2026-08-19T04:35:33","slug":"delhi-high-court-upholds-mcd-tender-eligibility-criteria-for-mlff-toll-project","status":"publish","type":"post","link":"https:\/\/xpertslegal.com\/blog\/delhi-high-court-upholds-mcd-tender-eligibility-criteria-for-mlff-toll-project\/","title":{"rendered":"Delhi High Court Upholds MCD Tender Eligibility Criteria for MLFF Toll Project"},"content":{"rendered":"<h1><b>Skylark Infra Engineering Pvt. Ltd.\u00a0 [Petitioner ]\u00a0 \u00a0<\/b><b>Vs.\u00a0 <\/b><b>Municipal Corporation of Delhi [Respondent]<\/b><\/h1>\n<h1><b>W.P.(C) 8368\/2026, CM APPL. 39327\/2026 &amp; CM APPL. 39328\/2026<\/b><\/h1>\n<h1><b>(DB, Anil Kshetarpal and Shail Jain, JJ.)<\/b><\/h1>\n<p>&nbsp;<\/p>\n<p><b>Overview<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In this case, the Delhi High Court examined the validity of the MCD tender eligibility criteria which was prescribed for the implementation of the Multi Lane Free Flow (MLFF) toll collection system at Delhi\u2019s border entry points.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The petitioner challenged the Notice Inviting Tender (NIT), which was issued by the Municipal Corporation of Delhi on the ground that one of the technical eligibility conditions was anti-competitive.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The principal issue before the Court was whether the requirement of\u00a0 prior experience to operate at least 122 toll lanes under a single contract had any connection with the object of the project or violated Article 14 and 19(1)(g) of the Constitution of India.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Facts of the Case<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Municipal Corporation of Delhi (MCD), the respondent herein, invited bids for operation of the Toll Tax and Environment Compensation Charge (ECC) collection at 154 border entry points by an upgraded Multi Lane Free Flow (MLFF) technology. 244 toll lanes were covered under the project. It also involved RFID integration, ANPR technology, real-time transaction processing, and a centralised monitoring system.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the eligibility condition of the bidders to have an experience in operating at least 122 toll lanes under a single contract for a minimum period of two years was challenged by the petitioner, Skylark Infra Engineering.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It was alleged that the condition was arbitrary because equivalent experience acquired under multiple contracts should also have been accepted.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The petitioner mentioned that it had previous experience as a joint venture partner in operating the same border toll plazas and stated that the MCT had earlier stated that it would remove a similar condition after treating it as anti-competitive.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The MCD opposed the petition by stating that the MLFF project involved a more complex framework than the earlier RFID-based system. It also pointed out that the revised tender had been issued after the recommendations of the Commission for Air Quality Management and directions of the Supreme Court requiring implementation of the MLFF system within the prescribed time period.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Legal Issues<\/b><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the impugned eligibility criterion lacked a reasonable nexus with the object of the tender.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the eligibility condition of the bidders violated Articles 14 and 19(1)(g) the Constitution of India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the High Court could interfere with commercial tender conditions in exercise of jurisdiction under Article 226.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether the MCD was bound by its earlier decision relating to the previous tender.<\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><b>Decision<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Delhi High Court dismissed the writ petition and the MCD tender eligibility criteria was upheld.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Court held that judicial review in tender matters is limited. Courts examine only whether the decision-making process suffers from arbitrariness or any kind of discrimination. They cannot write afresh the eligibility conditions which are framed by the tendering authority only to widen the competition.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Court accepted that the MLFF project involved a technologically complex system. Experience gained under multiple independent contracts could not automatically be treated equal to managing a single contract of comparable scale. The eligibility condition therefore, had a clear connection with the complexity of the project and its timely execution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It was further held that the previous experience of the petitioner, as a joint venture partner did not automatically entitled it to be excluded from the applicable criteria. The Court also rejected the argument that the condition was anti-competitive, noting that several bidders satisfied the requirement and similar criteria existed in other States as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Court concluded that the impugned eligibility criteria neither violated Article 14 or Article 19 (1)(g) nor suffered from any kind of arbitrariness. The writ petition with all the pending applications was dismissed.<\/span><\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>Skylark Infra Engineering Pvt. Ltd.\u00a0 [Petitioner ]\u00a0 \u00a0Vs.\u00a0 Municipal Corporation of Delhi [Respondent] W.P.(C) 8368\/2026, CM APPL. 39327\/2026 &amp; CM APPL. 39328\/2026 (DB, Anil Kshetarpal and Shail Jain, JJ.) &nbsp; Overview In this case, the Delhi High Court examined the validity of the MCD tender eligibility criteria which was prescribed for the implementation of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3877,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-3875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-judgement"],"_links":{"self":[{"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/posts\/3875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/comments?post=3875"}],"version-history":[{"count":2,"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/posts\/3875\/revisions"}],"predecessor-version":[{"id":3879,"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/posts\/3875\/revisions\/3879"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/media\/3877"}],"wp:attachment":[{"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/media?parent=3875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/categories?post=3875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/xpertslegal.com\/blog\/wp-json\/wp\/v2\/tags?post=3875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}