Statutory right of Financial Creditor u/s. 7 of IBC cannot be curtailed due to pending OTS proposal

Rajender Kumar Pahwa Vs Canara Bank (NCLAT Delhi)

Held that the statutory right of a Financial Creditor bestowed u/s. 7 of the ‘IBC’ cannot be curtailed to any ‘Inter-Creditor Agreement’ or Consortium agreement executed between the lender banks, as the same was only for regulating the inter se affairs of the consortium and the OTS proposal cannot be claimed by a borrower as a matter of right.

Facts- The instant appeal has been filed by Shri Rajender Kumar Pahwa Suspended Director of the Corporate Debtor (CD) Good Luck Carbon Pvt. Ltd. u/s. 61 of the

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