Financing Documents, Inter-Creditor Agreement,do not in any manner curtail or limit the rights of the Financial Creditor in its individual capacity to enforce its rights against the Corporate Debtor in regard to the financial debt which is payable in law & in fact & in respect whereof default as alleged is not disputed – Amitabh Kumar Jha Vs. Bank of India & Anr-NCLAT
The Appellate Tribunal upheld the decision of the Adjudicating Authority and 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.
