TMI Blog2021 (3) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... consider the report submitted by the investigating authority. If the disciplinary committee is satisfied that sufficient cause exists, it can impose a penalty. The availability of a grievance redressal mechanism under the IBC against an insolvency professional does not divest the NCLT of its jurisdiction Under Section 60(5)(c) of the IBC to consider the amount payable to the Appellant. In any event, the purpose of such a grievance redressal mechanism is to penalize errant conduct of the RP and not to determine the claims of other professionals which form part of the CIRP costs. The proceedings shall accordingly stand remitted back to the NCLT for determining the claim of the Appellant for the payment of the professional charges as a registered Valuer appointed by the RP in pursuance of the initiation of the CIRP - Appeal allowed. - Civil Appeal No. 4065 of 2020 - - - Dated:- 15-3-2021 - Dr. D.Y. Chandrachud And M.R. Shah, JJ. JUDGMENT Dr. D.Y. Chandrachud, J. 1. Admit. 2. The present appeal arises out of proceedings relating to the insolvency of a company by the name of Kavveri Telecom Infrastructure Limited ( Corporate Debtor ). The National Company La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, the NCLT dismissed the application by an order dated 29 June 2020 concluding that it had been rendered functus officio. In appeal, the NCLAT by an order dated 13 October 2020 rejected the contention of the Appellant, noting that an amount of ₹ 50,000 had already been paid over. The Appellant moved this Court in an appeal Under Section 62 of the IBC, for challenging the order of the NCLAT. 8. On 11 January 2021, this Court issued notice in the appeal and, while doing so, passed the following order: 1. Mr. Manish Paliwal, learned Counsel appearing on behalf of the Appellant submits that: (i) The Appellant was appointed as a Registered Valuer on 16 September 2019, and that his professional fees and other expenses in the amount of ₹ 7.50 lakhs were ratified by the Committee of Creditors on 19 December 2019; (ii) The NCLAT by its order dated 18 December 2019 set aside the corporate insolvency resolution process and the proceedings were remitted to the NCLT to decide on the CIRP costs; (iii) On 20 December 2019, the NCLT determined the fees which were payable to the Interim Resolution Professional; and (iv) However, despite the order of the NCLAT, no d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be specified by the Board; 13. Regulation 31 of the IRP Regulations is contained in Chapter 9, which is titled 'Insolvency Resolution Process Costs'. Regulation 31 is in the following terms: 31. Insolvency resolution process costs.- Insolvency resolution process costs Under Section 5(13)(e) shall mean- (a) amounts due to suppliers of essential goods and services Under Regulation 32; (aa) fee payable to authorized representative Under Sub-regulation (7) of Regulation 16A; (ab) out of pocket expenses of authorized representative for discharge of his functions Under Section 25A; (b) amounts due to a person whose rights are prejudicially affected on account of the moratorium imposed Under Section 14(1)(d); (c) expenses incurred on or by the resolution professional to the extent ratified Under Regulation 33; (d) expenses incurred on or by the resolution professional fixed Under Regulation 34; and (e) other costs directly relating to the corporate insolvency resolution process and approved by the committee. 14. Of the clauses of Regulation 31, of particular importance to the present case is Clause (c) which enunciates expenses incurred on or b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permissible against the applicant under the Code. 17. Clause 2 of Regulation 30A, which is referred to in Clause 7, is as follows: (2) The application Under Sub-regulation (1) shall be made in form-FA of the Schedule accompanied by a bank guarantee- (a) towards estimated expenses incurred on or by the interim resolution professional for purposes of Regulation 33, till the date of filing of the application under Clause (a) of Sub-regulation (1); or (b) towards estimated expenses incurred for purposes of Clauses (aa), (ab), (c) and (d) of Regulation 31, till the date of filing of the application under Clause (b) of Sub-regulation (1). 18. Regulation 30(A) would not apply specifically to the present situation, since it deals with a case where an application is withdrawn Under Section 12A of the IBC. The Appellant is justified in contending that there must be a forum within the ambit and purview of the IBC which has the jurisdiction to make a determination on a claim of the present nature, which has been instituted by a valuer who was appointed in pursuance of the initiation of the CIRP by the RP. After the NCLAT set aside the CIRP and remitted the proceedings to the NCL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sic part of the CIRP costs. Regulation 34 of the IRP Regulations defines 'insolvency resolution process cost' to include the fees of other professionals appointed by the RP. Whether any work has been done as claimed and if so, the nature of the work done by the valuer is something which need not detain this Court, since it is purely a factual matter to be assessed by the Adjudicating Authority. 20. The NCLT in its order dated 29 June 2020, while dismissing the application of the Appellant for the payment of fees, observed that the Insolvency and Bankruptcy Board of India ( IBBI ) is the competent authority to deal with allegations against the RP relating to their failure to discharge statutory duties (paragraph 7). Section 217 of the IBC empowers a person aggrieved by the functioning of an RP to file a complaint to the IBBI. If the IBBI believes on the receipt of the complaint that any RP has contravened the provisions of IBC, or the rules, Regulations or directions issued by the IBBI, it can, Under Section 218 of the IBC, direct an inspection or investigation. Under Section 220 of the IBC, IBBI can constitute a disciplinary committee to consider the report submitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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