By S&S Co. Advocates & Solicitors · Published 11 August 2026 · Informational content, not legal advice
About this article: A general explainer prepared by S&S Co. Advocates & Solicitors on a recurring type of dispute. It does not report a specific judgment or order, names no parties and gives no case citation, so it should not be cited as authority. Law and practice change; please verify against the current statute and primary sources before relying on it.
Metro rail and other PPP concession agreements usually give the authority or the lenders a step-in right, allowing them to take over or appoint a replacement operator when specified events occur, such as a sustained failure to meet minimum service levels. Many agreements also list the concessionaire's insolvency as a termination event.
Once a corporate insolvency resolution process begins, the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 restricts, among other things, recovery proceedings and the transfer or disposal of the corporate debtor's assets. The Supreme Court has held, in Gujarat Urja Vikas Nigam Ltd. v. Amit Gupta (2021), that termination of a contract solely on the ground of the corporate debtor's insolvency can be interfered with where the contract is essential to keep the debtor a going concern. The position depends on the contract and the circumstances.
The authority's claim for amounts due, such as unpaid concession fees, is generally pursued by filing a claim in the process. This is separate from any right to terminate or step in, which turns on how the trigger is worded. A step-in trigger tied to a specific operational default is easier to rely on than one that depends on insolvency alone.