TMI Blog2022 (1) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenses, 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. - Civil Appeal No 3160 of 2020 - - - Dated:- 5-1-2022 - HON'BLE DR. JUSTICE D.Y. CHANDRACHUD AND HON'BLE MR. JUSTICE A.S. BOPANNA For Appellant(s) Ms. Anjali Sharma, Adv. Ms. Shagun Matta, AOR Mr. Deepak Bashta, Adv. For Respondent(s) Mr. Vadlamani Seshagiri, Adv. Mr. Shreyuss Shankar Joshi, Adv. Mrs. Bela Maheshwari, AOR JUDGMENT Dr Dhananjaya Y Chandrachud, J 1. This appeal arises from a judgment of the National Company Law Appellate T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication on 17 January 2020 for obtaining the release of the remaining fee and costs. The principal relief which was claimed was in the following terms: 1. That the Respondent Bank of India, be directed to make payment of the CIRP cost including fees of the Applicant Resolution Professional as per the details furnished in the Annexure D. 6. On 24 January 2020, the respondent replied to the appellant s letter dated 30 December 2019 stating that it had verified the details of the fee and costs stated by the appellant and found them in conformity with the technical and financial bid based on which he had been awarded the assignment, together with the approval of the Committee of Creditors ( CoC ). The respondent stated that it would release the payment to the appellant, upon receipt of an order of the NCLT. By its order dated 7 February 2020, the NCLT disposed of the application in the following terms: MA 223/2020 is filed by the Resolution Professional for his fees. On hearing both sides, the Respondent Bank is directed to pay all the expenses incurred by RP and ₹ 5,00,000 /- plus GST towards the fee of the RP. Accordingly, MA 223/2020 is allowed and dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 019 that the fourth CoC meeting held on 10 December 2019 had ratified all the expenses up to 30 November 2019, after which no meeting took place; (iii) The respondent, as a matter of fact, by its letter dated 24 January 2020, found, upon verification, that the fee and expenses as claimed were admissible; (iv) The NCLT did not scrutinize or verify the factual position and merely awarded an ad hoc figure of ₹ 5,00,000 while the NCLAT has committed a similar error on the ground that an amount of ₹ 5,00,000 was found to be reasonable; and (v) The appellant worked as an IRP for three months which is half the period of one hundred and eighty days envisaged for completing the process. 10. In this backdrop, counsel submitted that in terms of the decision of this Court in Alok Kaushik v Bhuvaneshwari Ramanathan (2021) 5 SCC 787, the adjudicating authority would have jurisdiction under Section 60(5)(c) of IBC. In the present case, the jurisdiction has (it is urged) been improperly exercised in the sense that there has been no application of mind to the basis of the claim and the figures which were accepted by the financial creditor. 11. On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... detain this Court, since it is purely a factual matter to be assessed by the adjudicating authority. 14. Regulation 34 of the the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 provides as follows : 34. Resolution professional costs.- The committee shall fix the expenses to be incurred on or by the resolution professional and the expenses shall constitute insolvency resolution process costs. Explanation .-For the purposes of this regulation, expenses include the fee to be paid to the resolution professional, fee to be paid to insolvency professional entity, if any, and fee to be paid to professionals, if any, and other expenses to be incurred by the resolution professional. 15. The Insolvency and Bankruptcy Board of India has issued a circular on 12 June 2018. The circular, inter alia, requires the insolvency professional to ensure that the fees payable to him during the CIRP are reasonable and the approval of the CoC for the fee or other expenses is obtained, wherever approval is required. 16. In the present case, after the NCLAT set aside the order of the NCLT initiating the CIRP, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
