Only costs directly related to CIRP & approved by CoC can be classified as CIRP costs: NCLAT

Avil Menezes Liquidator of Sunil Hitech and Engineers Limited Vs Abdul Qudduskhan (NCLAT Delhi) In this case, the issue revolves around whether the costs incurred by a subcontractor during the Corporate Insolvency Resolution Process (CIRP) can be considered as CIRP costs. The Resolution Professional (RP) and Committee of Creditors (CoC) had decided that payments to vendors engaged in specific projects would be sourced from the cash flow generated by those projects’ customers. However, the subcontractor’s activities did not contribute to the viability of the Corporate Debtor as a &#...