Secured Creditor Locus

In a sharply reasoned ruling with significant implications for lender enforcement strategies, the Delhi High Court has drawn a clear boundary between security enforcement rightsand contractual substitution claims. 

The Court held that a secured creditor cannot step into the shoes of a contractor merely on the strength of security over receivables.

Equally significant is the Court’s reaffirmation that writ jurisdiction cannot be invoked to adjudicate pure contractual disputes, especially in infrastructure projects. 

The judgment effectively reins in aggressive SARFAESI-led takeover strategies and reinforces contractual sanctity in public projects.