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2020 (7) TMI 123 - AT - Insolvency and BankruptcyCIRP Process - scope of Financial Creditor - whether the 'Inter-Creditor Agreement' devising a mechanism for enforcement of rights qua the 'Corporate Debtor' would bar an individual Creditor from triggering 'Corporate Insolvency Resolution Process' in the event of default qua outstanding liability in respect of its financial debt without the consent of other lenders forming the consortium of the same 'Corporate Debtor' - HELD THAT:- The statutory right across the ambit of Section 7 of the 'I&B Code' cannot be curtailed or made subservient to any 'Inter-Creditor Agreement'. The contractual rights, unless recognised by the statute as a permissible mode, would not override the statutory mechanism and right created and enforceable under statute - The language employed in this clause is eloquent enough to hold that each lender who is a member of the consortium may separately enforce its rights and no Rupee Lender having separate and independent rights shall be responsible for the obligations of any other Rupee Lender. Clause 1.3 speaks in unambiguous terms that the 'Inter-Creditor Agreement' would not in any manner alter, modify or impair any of the rights vesting in the Rupee Lenders against the Borrower under the Finance Documents. This leaves no room for the 'Corporate Debtor' to contend that these financing documents do in any manner enure to the benefit of the 'Corporate Debtor' who has absolutely no locus to raise an issue in this regard. The Financing Documents do not in any manner curtail or limit the rights of the 'Financial Creditor'- 'Bank of India' in its individual capacity to enforce its rights against the 'Corporate Debtor' in regard to the financial debt which is payable in law and in fact and in respect whereof default as alleged is not disputed - Appeal dismissed.
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