Case Law Details
Laxman Singh (Ex-Director) of Divineseair Logistics Pvt. Ltd. Vs Kerry Indev Logistics Pvt. Ltd. (NCLAT Delhi)
NCLAT Delhi held that the First Schedule of IBBI (Insolvency Professionals) Regulations, 2016 provides that the Resolution Professional is expected to charge his fees in a transparent manner which should be a reasonable reflection of the works undertaken rather than maximizing their own personal benefits.
Facts- The present appeal filed u/s. 61 of Insolvency and Bankruptcy Code, 2016 by the Appellant arises out of the Order passed by the Adjudicating Authority (National Company Law Tribunal). By the impugned order, the Adjudicating Authority has admitted the petition u/s. 9 of the IBC and allowed the initiation of Corporate Insolvency Resolution Process of the Corporate Debtor. Aggrieved by this impugned order, the present appeal has been preferred by the ex-Director of the Corporate Debtor.
It was emphatically submitted that the excessive fees/expenses claimed by the Resolution Professional was preventing them from filing the withdrawal application before the Adjudicating Authority.
Conclusion- Held that aggrieved with the hefty fees of the Resolution Professional, a complaint was also sent by the Respondent No. 1 to IBBI. It is common knowledge that Para 25 to 27 of the Code of Conduct in the First Schedule of IBBI (Insolvency Professionals) Regulations, 2016 provides that the Resolution Professional is expected to charge his fees in a transparent manner which should be a reasonable reflection of the works undertaken rather than maximizing their own personal benefits. In the present case, though the sole CoC member had admittedly approved the fees of the Resolution Professional that cannot become a cover to keep on claiming the fees and end up burdening the sole CoC member with a disproportionately heavy amount as fees/expenses. It was incumbent upon the Resolution Professional to keep in mind that the entire claim amount collated was only about Rs.10 lakhs. Moreover, there was no complexity in the CIRP proceedings which warranted any exceptional responsibility to be discharged by him.
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