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2020 (8) TMI 541 - AT - Insolvency and BankruptcyFees of a Liquidator - CIRP process - whether the fees of the Liquidator shall be proportionate to the liquidation estate assets? - Section 34(8) of I&B Code - HELD THAT:- Section 34 of the I & B Code 2016 speaks of ‘Appointment of Liquidator and fee to be paid’. In reality, the ingredients of Section 34(8) of the Code enjoin that ‘the Fees of the Insolvency Professional appointed as Liquidator’ shall be determined in proportion to the value of ‘Liquidation assets’. A Liquidator is entitled to such ‘Fee’ and in such manner as determined by the ‘Committee of Creditors’ before a Liquidation order is passed under Section 33 (1)(a) or Section 33(2) of the Code. In respect of other cases, other than those covered under Sub-Regulation (2), the Liquidator shall be entitled to a percentage of the amount realised net of other ‘Liquidation Costs’ and of the sum distributed as provided in this Regulation. Further, Sub-Regulation (4) specifies that the ‘Liquidator’ shall be entitled to receive half of the fee payable on realisation under Sub-Regulation (3) only after such realised sum is distributed. A ‘Liquidator’ will be entitled to remuneration for the services rendered by a member of his staff. In this connection, it is pertinent for this Tribunal to make a mention that a court/tribunal has a discretion to decide the fee or remuneration of a voluntary Liquidator but the fact of the matter is that where the expense are neither justified nor ancillary/incidental to the winding up, the same may not be reimbursed. This Tribunal is of the earnest opinion that for the services to be rendered/rendered by the Liquidator in regard to the ‘I.T. Refund Amount’ and the same being converted into cash, even though much effort is not required, certainly, the Liquidator is entitled to claim remuneration for this ‘outturn’ of work, of course, in conformity with the I & B Code coupled with the IBBI (Liquidation Process) Regulations 2016 - Appeal disposed off.
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