Bhambri, who returned to the Grand Slam stage after 2018 US Open due to knee injury, beat his 248th ranked Portuguese rival 6-4 6-2 in just 68 minutes.
After a confusing day-long hearing involving dense legal arguments, Djokovic was ordered to be released from immigration detention on procedural grounds.
The drama, however, might not be finished, with the Australian government threatening to cancel his visa a second time.
The 26-year-old Australian took to social media to confirm the development and has subsequently decided to pull out of the Sydney Tennis Classic, a warm-up event to the Grand Slam.
The tennis star won his legal appeal on procedural grounds, quashing the border officer's initial decision to cancel his visa.
India's World No 221 defeated the 119th ranked Colombian 6-4, 6-4 in one hour and 13 minutes; will face Germany's World No 228 Maximilian Marterer next.
Circuit Court Judge Anthony Kelly ordered the Australian Government on Monday to release Djokovic from Melbourne hotel quarantine within 30 minutes of his decision.
The 34-year-old is fighting deportation and the cancellation of his visa in the Federal Circuit and Family Court of Australia.
Judge Anthony Kelly rejected, in an order published on Sunday, the submission by home affairs minister Karen Andrews on Saturday to push Monday's hearing to Wednesday.
The Spaniard was playing for the first time since August this week after a foot injury curtailed his 2021 season. However, the world number six showed little sign of rustiness in Melbourne, not dropping a set at the ATP 250 event to earn his 89th tour-level crown.
The focus will be on Bhambri, who lost invaluable three years due to a troubling knee but in a few tournaments that he has played going into the fresh season, the talented Delhi player seems ready for the grind yet again.
Djokovic is awaiting court proceedings on Monday that will determine whether he can defend his Australian Open title or whether he will be deported — and the world has shown keen interest in his temporary accommodation.
The virtual hearing is scheduled on Monday and will take place at 10 AM local time in Melbourne (4:30 AM IST on Monday) in the Federal Circuit and Family Court of Australia.
The two-time Grand Slam winner won the Adelaide International defeating Elena Rybakina 6-3, 6-2 in the final.
Bopanna's excellent service returns at crucial times and Ramkumar's all-round game tilted the match in their favour.
In court documents published on Saturday, it was stated that Djokovic recorded a positive test on December 16, and has not had a fever or respiratory symptoms of Covid-19 in the last 72 hours".
In a clash between the tournament's two previous winners, No 1 seed Barty beat No 5 seed Swiatek 6-2, 6-4 in 1 hour and 27 minutes to keep alive her hopes of regaining the title she claimed in 2020.
It will be an interesting match as the 41-year-old Bopanna and Dodig have often paired up together, the most recent being in the US Open in September when the duo was knocked out in the third round.
"I had a lot of fun playing here in Melbourne. Unfortunately, I have an abdominal injury which I need to rest and prepare for the Australian Open," Osaka said in a statement issued by Tennis Australia.
Djokovic received calls from his native Serbia, including from his parents and the president, who hoped to boost his spirits on the holiday.
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