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TMI Blog2022 (10) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... di , Advocates JUDGMENT [ Per : Barun Mitra , Member ( Technical ) ] The present appeal, filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 ('IBC' in short) by the Appellant arise out of order dated 09.05.2022 (hereinafter referred to as 'Impugned Order') passed by the Adjudicating Authority (National Company Law Tribunal, Ahmedabad, Division Bench, Court-1) in I.A. No. 415(AHM)2022 arising out of CP(IB) No. 55 of 2020. By the impugned order, the Adjudicating Authority on an application filed by Interim Resolution Professional of Corporate Debtor under Section 60(5) read with Section 19 of the Insolvency and Bankruptcy Code directed the present Appellant to take part in the Corporate Insolvency Resolution Process ('CIRP' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of IRP; expenses incurred by the IRP etc. The present Appellant, however, did not cast his vote during the second CoC meeting and stated during the said meeting that CBIC Master Circular No. 1081/02/2022-CX dated 19.01.2022 on Recovery and Write-off of Arrears of Revenue do not provide for payment of fees and CIRP costs. Since two of the Operational Creditors of the CoC including the present Appellant did not cast their vote in the 2nd CoC meeting, the Resolution Professional approached the Adjudicating Authority for directions. The Adjudicating Authority on 16.03.2022 in IA/65(AHM) 2022 in CP(IB) 55 of 2020 held that CoC cannot deny to act under law and directed the CoC members to cast their vote in CoC meetings in respect of resoluti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per voting share. The Appellant, aggrieved with the above orders of the Adjudicating Authority dated 09.05.2022 has come up in appeal seeking exemption/exclusion from bearing the expenses and fee of Resolution Professional and CIRP costs. 3. The Learned Counsel for the Appellant submitted that Rule 112 of NCLT Rules, 2016 has restricted collection of any kind of fees payable from the Central Government at the time of filing any application and hence CIRP costs cannot be collected from them. It is further submitted that it is not justified on the part of the Adjudicating Authority to compel the Appellants to pay CIRP costs when they voted against this resolution in the CoC meeting. It was further added that the aforementioned CBIC Maste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Schedule of Fees appended to these rules; Provided that no fee shall be payable or shall be liable to be collected on a petition or application filed or reference made by the Registrar of Companies, Regional Director or by any officer on behalf of the Central Government. (2) In respect of every interlocutory application, there shall be paid fees as prescribed in Schedule of Fees of these rules: Provided that no fee shall be payable or shall be liable to be collected on an application filed by the Registrar of Companies, Regional Director or by an officer on behalf of the Central Government. (3) In respect of a petition or appeal or application filed or references made before the Principal Bench or the Bench of the Tribunal, fees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IRP fees is not recoverable from government departments to be misconceived and untenable as we find no such express provision either in the IBC or the NCLT Rules. 11. This brings us to the applicability of CBIC Master Circular No. 1081/02/2022-CX dated 19.01.2022 on Recovery and Write-off of Arrears of Revenue in IBC matters in the context of payment of CIRP costs and IRP fees. From a cursory glance at the aforementioned circular as at pages 117-133 of the Appeal Paper Book, contents of the Master Circular do not appear to refer to how CIRP costs and IRP fess are to be handled. Be that as it may, we cannot lose sight of the well settled legal proposition that IBC is a complete code in itself and the Hon'ble Supreme Court has taken a clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oting share to take active part in CIRP. From the material on record, it is borne out that the Adjudicating Authority having admitted the CIRP proceedings on 23.11.2021 and appointed the IRP, the latter had started discharging his duties and responsibilities diligently in terms of IBC Code and Rules/ Regulations framed thereunder. 14. The IRP started collating claims in a timely manner and the Appellant also submitted his claim. Thus the Appellant was very much an integral part of the CIRP process from its inception. As there were no Financial Creditors of the Corporate Debtor and the IRP was obligated to scrupulously follow the procedures prescribed in the IBC Code and the Rules/Regulations framed thereunder, he had no choice but to set u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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