Insolvency and Bankruptcy Code 2016 – Ss. 7 & 60 (5) (c) – Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 – Reg. 34 – Resolution professional costs.
In the present case, after the NCLAT set aside the order of the NCLT initiating the CIRP, the proceedings were remitted back for determining the insolvency resolution costs. It is material to note that the appellant had addressed a letter to the respondent on 13 December 2019 prior to the filing of the application to which the respondent responded on 24 January 2020 stating that, upon verification, the costs and fees were found in conformity with both the technical and financial bid, based on which the assignment was awarded. In the application which was filed by the appellant before the NCLT, the appellant annexed a statement of costs, the amount which was reimbursed with the balance dues at Annexure ‘D’. The order of the NCLT, however, reveals that none of the submissions of the appellant have been considered. The adjudicating authority merely directed the respondent to pay the expenses incurred and an amount of Rs 5,00,000 plus GST towards the fee of the RP. Neither the basis of the claim nor its reasonableness has been considered by the adjudicating authority. The appellate authority has merely proceeded in an ad hoc manner on the ground that the amount of Rs 5,00,000 as fee, in addition to the expenses, 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 Rs 5,00,000 together with expenses has been found to be reasonable. Consequently, an order of remand becomes necessary. [Para 16]
Case Law Reference
- Alok Kaushik v. Bhuvaneshwari Ramanathan, (2021) 5 SCC 787
Case Number : Civil Appeal No. 3160 of 2020; January 05, 2022
CORAM : HON’BLE DR. JUSTICE D.Y. CHANDRACHUD 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
Case Link : https://pdf.caselaw.in/sc/2022/01/1155/