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2022 (1) TMI 266 - SC - Insolvency and BankruptcyDetermination of insolvency resolution costs - payments of costs and expenses incurred by the Resolution Professional (RP) - HELD THAT:- In the present case, after the NCLAT set aside the order of the NCLT initiating the CIRP, the proceedings were remitted back for determining the insolvency resolution costs. It is material to note that the appellant had addressed a letter to the respondent on 13 December 2019 prior to the filing of the application to which the respondent responded on 24 January 2020 stating that, upon verification, the costs and fees were found in conformity with both the technical and financial bid, based on which the assignment was awarded - The adjudicating authority merely directed the respondent to pay the expenses incurred and an amount of ₹ 5,00,000 plus GST towards the fee of the RP. Neither the basis of the claim nor its reasonableness has been considered by the adjudicating authority. The appellate authority has merely proceeded in an ad hoc manner on the ground that the amount of ₹ 5,00,000 as fee, in addition to the expenses, appears to be reasonable. Both the orders suffer from an abdication in the exercise of jurisdiction. In the absence of any reasons either in the order of the NCLT or the appellate authority, it is impossible for the Court to deduce the basis on which the payment of an amount of ₹ 5,00,000 together with expenses has been found to be reasonable. Consequently, an order of remand becomes necessary. The impugned judgment and order of the NCLAT dated 30 July 2020 is set aside - the NCLT, upon remand, is requested to expedite the disposal of the MA and to complete the process within a period of one month from the date of receipt of a certified copy of this order on its record - appeal disposed off.
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