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2022 (11) TMI 866 - AT - Insolvency and BankruptcyCIRP - Recovery of Fee payable to Resolution Professional from the Income Tax Department and the Excise and Taxation Department of state in proportion to its voting share in the Committee of Creditors - Recovery from the operation credit - there is no financial creditors - HELD THAT:- Section 21(8) of the IBC stipulates that all decisions of the CoC shall be taken by not less than 51% of voting share in the CoC. It is noted that the notice for 7th CoC meeting was sent and delivered to both the Appellants viz. Income Tax Department and Excise and Taxation Department and they chose not to be present in the said meeting, whereupon the RP adjourned the meeting to hold it with their participation. It is noted that both the Appellants again chose to be absent in the re-assembled 7th CoC meeting, which was taking place after being adjourned once, and wherein decision regarding the CIRP cost, RP’s fees, etc. were taken. Regulation 22(2) and 22(3) of CIRP Regulations provide that when a meeting could not be held for want of quorum, the meeting automatically stand adjourned at the same time and place on the next day and regulation 22(3) provide that when the adjourned meeting takes place with the members attending the meeting, it shall be quorate - there are no illegality in either holding of the 7th meeting of CoC dated 6.12.2019 and in the decisions taken in the meeting regarding the payment of CIRP cost and RP fees. RP and the CoC have acted in the true spirit of the law for fixing of the shares of the operational creditors in the CIRP cost and RP’s fees (since there are no financial creditors) which are required to be deposited with the liquidator immediately. The Impugned Order does not suffer from any error and, therefore, needs no interference - appeal dismissed.
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