Delhi High Court Restrains NCERT From Invoking ₹6.09 Crore Bank Guarantee Against Paper Supplier

The Delhi High Court has restrained the National Council of Educational Research and Training (NCERT) from taking coercive steps to invoke a ₹6.09 crore bank guarantee furnished by a paper supplier.

It also directed that no coercive action be taken pursuant to NCERT's order terminating the supply contract and debarring the company for two years, until the next hearing on July 20.

Justice Mini Pushkarna passed the interim order in an arbitration petition filed by Bafna Global Venture Pvt. Ltd. challenging NCERT's June 22 order. After considering the company's submissions, the court held that the matter required consideration.

Observing so, the court directed, "Considering the submissions made before this Court, it is directed that no coercive action shall be taken for invoking the Bank Guarantee bearing no. 0005NDDG00220426 dated 10th December, 2025 amounting to Rs. 6,09,20,000/-, in pursuance to the Order dated 22nd June, 2026, invoking the Bank Guarantee, till the next date of hearing."

The dispute arose from a Government e-Marketplace contract dated December 1, 2025. Under the contract, Bafna Global agreed to supply paper to NCERT.

Through its June 22 order, NCERT terminated the contract. It also ordered immediate forfeiture of, and invocation of, the bank guarantee. The company was further debarred from participating in NCERT procurement processes for two years.

Bafna Global approached the High Court seeking interim protection against invocation of the bank guarantee. It also sought protection from coercive action under the June 22 order.

It submitted that blacklisting should not ordinarily follow a contractual dispute where a bona fide dispute exists.

The court noted that despite advance notice, none appeared on behalf of NCERT. Holding that the matter required consideration, it issued notice and directed NCERT to file its reply within four weeks. Bafna Global was granted two weeks thereafter to file a rejoinder, if any.

The court also directed that no coercive steps be taken against the company pursuant to the June 22 order until the next date of hearing. The matter has been listed before the roster bench on July 20.

For Petitioner (Bafna Global Venture Pvt. Ltd.): Advocates Tanmay Mehta, Pranav Sarthi, Prachi Dhingra, Udit Bajpai, Ayush Raj and Utkarsh Vatsa.