Delhi High Court Restrains DUSIB From Acting On Bank Guarantees Furnished For Construction Of 7,400 EWS Houses

The Delhi High Court has granted interim protection to Supreme Infrastructure India Ltd by restraining the Delhi Urban Shelter Improvement Board (DUSIB) from taking any precipitative steps in relation to bank guarantees furnished for a project involving the construction of 7,400 Economically Weaker Sections (EWS) houses at Pocket-II, Bhalaswa, Jahangirpuri.

Justice Sachin Datta passed the interim order while issuing notice on the petition. The court directed DUSIB to file its reply within two weeks. The matter has been listed for hearing on September 3, 2026.

"In the meantime, subject to the petitioner renewing the concerned bank guarantees and keeping the same alive and subsisting during the pendency of the present petition, the respondent shall be restrained from taking any precipitative steps qua the said bank guarantees," the court held.

The dispute arises from a contract for constructing 7,400 (G+4) five-storeyed EWS houses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for slum dwellers at Pocket-II, Bhalaswa, Jahangirpuri.

Supreme Infrastructure approached the High Court seeking to restrain DUSIB from invoking the bank guarantees furnished for the project. It had also sought to restrain DUSIB's termination notice dated April 22, 2026.

During the hearing, Senior Advocate Shashank Garg, appearing for Supreme Infrastructure, submitted that the challenge to the termination notice had become infructuous because the contract had already been terminated. Garg also informed the court that the bank guarantees had expired. He submitted that they would be renewed.

The court restrained DUSIB from taking any precipitative steps in relation to the bank guarantees. The relief is subject to Supreme Infrastructure renewing the bank guarantees and keeping them alive during the pendency of the petition. It also directed the company to file its rejoinder before the next date of hearing.

For Petitioner: Senior Advocate Shashank Garg, Advocates Pranjit Bhattacharya, Shalini Basu, Nitya Prabhakar and Divyansha Agarwal

For Respondent: Advocates Anuj Chaturvedi, Richa Dhawan and Yashita Jain,