In a public issue under the book-built mechanism in India, the investment banker ties up the underwriting commitments from the syndicate members

In a public issue under the book-built mechanism in India, the investment banker ties up the underwriting commitments from the syndicate members. When the issue devolves, one of the syndicators who has underwritten 10% of the offer backs out stating financial incapacity. The i-banker informs the company about it and states that since the issue can be closed with 90% subscription, the underwriting obligation of the defaulting underwriter can be waived by the lead manager. The company insists that according to the underwriting contract, the lead underwriter is liable for the defaulting underwriter. Who is legally right?

(a) The company     (b) The lead underwriter