Bank Cannot Take Over Project for Absence of Security Over Business Assets: Delhi HC

Union Bank of India Vs Delhi Jal Board & Ors. (Delhi High Court) The Delhi High Court examined a writ petition filed by a secured creditor bank challenging the termination of a contract and an Operation and Maintenance (O&M) Agreement relating to an interceptor sewer project. The project was originally awarded in 2011 to a consortium, with a tripartite agreement executed for design, construction, and maintenance. The petitioner bank had extended loans exceeding ₹500 crore to the lead member of the consortium and created a security interest primarily over project receivables and relat...