Case Law Details
India Resurgence ARC Pvt. Ltd. Vs Rohit J. Vora (NCLAT Delhi)
NCLAT Delhi held that adjudicating authority rightly reduced fees payable to Resolution Professional on failure in complying with his responsibilities of completing CIRP in a time bound manner.
Facts- The present appeal is filed u/s 61 of Insolvency and Bankruptcy Code, 2016 (IBC) arises out of the order passed by the Adjudicating Authority (National Company Law Tribunal) wherein the Adjudicating Authority has directed the Committee of Creditors (CoC) for payment of fees to the Resolution Professional (RP) of Rs.1 lakh per month + GST from 01.09.2019 to 24.04.2022 along with other actual expenses incurred by him on production of bills.
Notably, Section 7 application had been admitted against the Corporate Debtor on 25.04.2019 for initiation of CIRP. After collating claims of the creditors, the CoC was constituted on which Religare Finvest became a member. The Religare Finvest had 69.02% of the voting share and was the majority Financial Creditor. In terms of voting share, the next largest Financial Creditor was Dena Bank with a 29.34% vote share as recorded in the minutes of the first CoC meeting. Later, India Resurgence Arc Pvt Ltd became a member on 24.12.2021 after replacing Religare Finvest as the predecessor in interest following a deed of assignment in their favour. For convenience, this party will be referred to as Religare Finvest in this matter.
The Interim Resolution Professional appointed to conduct the CIRP was later appointed as the RP with a monthly remuneration of Rs.3.75 lakhs plus GST as approved in the 1st CoC meeting.
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