TMI Blog2022 (9) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the expenses incurred under the different heads covered by Regulation 31 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall be paid by the creditors - In the instant case, the cost incurred by erstwhile RP and remuneration payable to him was approved by CoC in the CoC meetings, the total amount payable is Rs. 16,09,402/-, thus, the legal heirs of deceased RP are entitled to claim the remuneration payable to erstwhile RP and cost incurred by him, approved in CoC meetings. One of the major contentions of the Appellant herein is that the Appellant is having only 25.54% voting share and liable to pay its share of costs. As per provisions of the Act, the Respondent before the Adjudicating Authority Appellant herein, the creditors have to bear the cost of resolution process and remuneration payable to the Resolution Professional in proportionate to voting share, but the Adjudicating Authority directed the creditors to pay 50% of the cost payable to erstwhile RP. Therefore, the direction to the extent of payment of remuneration equally by the creditors is contrary to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay the legal expenses which was not approved by the CoC and agreed to pay the fee payable to Resolution Professional and other expenses approved by CoC. 3. The Adjudicating Authority passed the order after recording contentions and mostly on the submission made by Ms. Anju Jain that fee payable to the legal heirs of the deceased Resolution Professional was approved by National Company Law Appellate Tribunal (hereinafter referred as NCLAT ) without recording independent reason. The Respondent before the Adjudicating Authority Appellant herein questioning the same on the ground that no such order of approval of the remuneration payable to the legal heirs of deceased Resolution Professional was passed by the NCLAT and that the Appellant is liable to pay remuneration and expenses approved by CoC, proportionate to his voting right of 25.54%. Apart from that the fee payable to advocate is not approved by CoC thereby not liable to pay the fee allegedly paid by RP to advocate, requested to pass an appropriate order. 4. Whereas, the Learned Senior Counsel Mr. Virender Ganda submits that the fee payable and the expenses incurred by deceased Resolution Professional was approved by CoC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Cost of conducting Meeting of Committee of Creditors 1,357 Total expenses (in Rs.) 3,60,177 The matter was discussed and the Chairman informed the committee that the CIRP expenses as described above from the date of commencement of the CIRP process (including the fee of IRP for the period) till the date of the first meeting total up to Rs.3,60,177/-. He further informed the members that the IRP has received Rs.2,00,000 from the applicant M/s Unimax International in accordance with the order of the Hon ble NCLT dated 30.09.2019 which needs to be reimbursed to him by the IRP upon approval of the expenses by the Committee and receipt of funds by the IRP. The Chairman requested the members to ratify the said expenses. The members after considering the same ratified the expenses unanimously. 7. In the 2nd CoC meeting dated 15.02.2020 the remuneration and expenses incurred by the Resolution Professional till date of meeting was shown as item No. 6 and approved the same is extracted hereunder: Item 06 To ratify and approve the remunerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date of second meeting of the Committee of Creditors till the date of this meeting, the details of which is as under: Sr. No. CIRP process cost Amounts (Rs) 1. Fees of Resolution Professional from 16.02.2019 till the date of this meeting (excluding applicable taxes, if any) 82,492 2. Preparation of demand drafts for filing of applications with the Hon ble NCLT 1,010 3. Lawyers fee for appearances before the Hon ble NCLT, Principal Bench and New Delhi Bench and Appellate Tribunal. 3,68,500 4. Electricity expenses 58,734 5. Meeting expenses, stamp paper, notary, speed post expenses 5,000 Total (in Rs.) 5,15,736 The members took tone of the same and ratified the expenses. 9. Thus, the total amount to be paid to erstwhile RP is Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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 interim 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. 12. A conjoint reading of Regulation 25A, 26 and 27 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and Regulation 31 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the expenses incurred under the different heads covered by Regulation 31 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall be paid by the creditors. Insolvency Process cost is defined under Section 5(13)(e) which runs as follows: 5(13)(e) Insolvency resolution process costs means- (e) any other costs as may be specified by the Board; 13. In the instant case, the cost incurred by erstwhile RP and remuneration payable to him was approved by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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