TMI Blog2022 (9) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... ently, the Appellant Bank filed its claim and the CoC was reconstituted and the Bank became the sole CoC Member. It is not in dispute that the Appellant participated in all the CoC Meetings and even passed a Resolution seeking Liquidation of the Corporate Debtor in the fourth CoC Meeting dated 10.02.2020. It is also not disputed that the fees and the cost incurred, claimed by the RP is only till the date, the Resolution for the Liquidation was passed. The proviso in this Regulation clearly stipulates that if any decision is taken by the committee, prior to the reconstitution, which in this case is the ratification of the fees and the expenses, its validity will not be affected. Admittedly the CIRP Costs were approved by the COC prior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the payment of his fees. 2. Learned Counsel for the Appellant submitted that the Appellant is the sole Financial Creditor of the reconstituted CoC and cannot be saddled with the liability of payment of the costs and fees of the RP. It is submitted that the remuneration and the expenses of the RP was fixed and approved by the Operational Creditor who was the sole Member of the earlier CoC and immediately thereafter the entire constitution of the CoC was changed and the said Operational Creditor was no longer a part of the CoC. The Appellant Bank today is the sole Member of the reconstituted CoC and has never ratified the remunerations and expenses. It is submitted that the RP has not discharged his responsibilities for which he is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for consideration in this Appeal is whether the Appellant Bank, which is the sole Financial Creditor of the reconstituted CoC be made liable to pay the fees of the CIRP Cost and RP, which the earlier CoC had ratified. The Operational Creditor who had initiated the CIRP was initially the sole CoC Member which had ratified the fees and expenses at Rs.1Lakh per month. The total liability to be paid by the Operational Creditor towards CIRP Cost was Rs.2,07,000/- till 12.10.2019. Subsequently, the Appellant Bank filed its claim and the CoC was reconstituted and the Bank became the sole CoC Member. It is not in dispute that the Appellant participated in all the CoC Meetings and even passed a Resolution seeking Liquidation of the Corporate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usion shall not affect validity of any decision taken by the committee prior to such inclusion. 5. The proviso in this Regulation clearly stipulates that if any decision is taken by the committee, prior to the reconstitution, which in this case is the ratification of the fees and the expenses, its validity will not be affected. Admittedly the CIRP Costs were approved by the COC prior to the inclusion of the Appellant Bank and hence as per the proviso to Regulation 12(3) of CIRP Regulations, 2016, it is the liability of the Appellant Bank to pay the expenses. The quantum of costs and fees was ratified by the earlier CoC and the Appellant has not objected to any such issues having participated in the Meetings and specifically being the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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