Sorry, I made a mistake in reply #8, the current from the inductor flows through D8, not D7.
D7 isn't doing anything, removing it won't change anything. No current is flowing through D7.
Read this: Flyback diodes and why you need them
If this doesn't answer your questions ask some more.
Being grounded has nothing to do with it. Ground is a reference point, the current neither knows or cares about it.