Resolution Professional Not Entitled to Fees during Stay on Insolvency Proceedings

IndusInd Bank Ltd. Vs Rajendra K. Bhuta (NCLAT Delhi)

When the Hon’ble Supreme Court by Interim Order dated 26^th November, 2018 has stayed the insolvency proceedings which proceedings ultimately were set aside by the final Judgment dated 2^nd September, 2019, we are of the view that Resolution Professional is not entitled for any fee after 26^th November, 2018. The RP is entitled for fee from 13t^h June, 2018 to 25t^h November, 2018 hence the Order of the Adjudicating Authority in Paragraph 17 is modified to the above extent that RP fee shall be entitled to fee from the period 13t^h June, 2018 to 25t^h November, 2018. No fee shall be entitled with effect from 26^th November, 2018. The order passed in paragraph 17 is modified to this extent. In regard to the Order of expenses as ordered in paragraph 18 of the Impugned Order, we affirm the Order of the Adjudicating Authority in paragraph 18 and the same be paid as directed by the Adjudicating Authority in paragraph 18. The Appeal is partly allowed to the above extent.

FULL TEXT OF THE NCLAT JUDGMENT/ORDER

This Appeal has been filed against the Order dated 16th December, 2021 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court-II). By which Order, I.A. No. 3251/MB/C-II/2019 filed by the Resolution Professional for reimbursement of Rs. 30,81,719/- has been allowed. The ‘Corporate Insolvency Resolution Process’ were initiated in the present case by Order dated 05^th March, 2018 passed by the Adjudicating Authority in C.P. (IB) No. 1264/MB/C-II/2017. ‘Committee of Creditors’ was formed on 26^th June, 2018 and the Insolvency Resolution Professional was appointed. On 11^th July, 2018, the Suspended Board of Directors filed Company Appeal (AT) Ins. No. 372 of 2018 before this Tribunal which Appeal was ultimately dismissed by this Tribunal against which the Matter was taken to the Hon’ble Supreme Court i.e. Civil Appeal No. 11020 of 2018. Hon’ble Supreme Court on 26t^h November, 2018 passed an Interim Order which is to the following effect:

“Application seeking exemption from filing certified copy of the impugned order is allowed.

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