NCLT Kochi Orders ₹2 Lakh Remuneration to Outgoing Liquidator per IBBI Rules

Asten Realtors Private Limited Vs Piramal Capital and Housing Finance Limited (NCLT Kochi)

NCLT Kochi held that post replacement of Liquidator without specific reason, the remuneration of the outgoing Liquidator is fixed at Rs. 2 Lakh per month which is minimum fees as prescribed by the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

Facts- Adjudicating Authority admitted the application filed by Sri. Chandy John Samuel & Others against the Corporate Debtor u/s.7 of the Insolvency and Bankruptcy Code, 2016 for initiating the Corporate Insolvency Resolution Process. This Adjudicating Authority approved two project-wise resolution plans during the CIRP period and for the residual assets including one Project Asten Aurum Woods, this Adjudicating Authority passed an order for liquidation vide order dated 11.2024 and appointed the Applicant herein as the Liquidator from the panel of Insolvency Professionals.

It is stated that since the Committee of Creditors has not fixed the remuneration of the Applicant, the Applicant proposed a monthly remuneration of Rs.2.50 Lakhs per month. However, the same was not approved by the Respondents. Hence, the Applicant has revised the fee to Rs. 2 Lakhs per month. However, this fee also was not acceptable to the members of the SCC who rejected the same with a 93.37% vote. The 1^st Respondent has proposed the replacement of the Applicant with a new Liquidator. The SCC with a vote of 94.30% resolved to replace the Liquidator with Mr. Sreenivasan P. R.