In Brief
Suzuki Parasrampuria Suitings Pvt. Ltd. sought substitution as a secured creditor in place of IFCI in the liquidation of Mahendra Petrochemicals Ltd., claiming to be an assignee of IFCI's debt. The Company Judge rejected the application, finding the appellant was not a bank or financial institution eligible under the SARFAESI Act. When the appellant later claimed it never sought secured creditor status but only wanted recognition as an assignee of an actionable claim, the Supreme Court dismissed the appeal. The Court held that the appellant had explicitly sought secured creditor status in its original pleadings and could not abandon this position once it was rejected. Litigants cannot take contradictory stands in the same case; the doctrine of estoppel and election prevents such inconsistent conduct.
The lawyer headnote and full judgment text are available to registered users.