Khozim Yusuf Nagarwala Vs Satyendra Prasad Khorania Erstwhile RP of Raj Buildhome Pvt. Ltd. (NCLAT Delhi)
In a significant ruling, the National Company Law Appellate Tribunal (NCLAT), Delhi, has upheld the jurisdiction of the Adjudicating Authority (National Company Law Tribunal) to determine the fees and expenses of the Resolution Professional (RP). The judgment in the case of Khozim Yusuf Nagarwala Vs Satyendra Prasad Khorania, erstwhile RP of Raj Buildhome Pvt. Ltd., highlights the procedural nuances and authority vested in the NCLT under the Insolvency and Bankruptcy Code (IBC), 2016.
Case Background
The Corporate Insolvency Resolution Process (CIRP) against Raj Buildhome Pvt. Ltd. commenced on 03.05.2019, initiated by the Financial Creditor under Section 7 of the IBC. The appeal against the commencement order was allowed by the NCLAT on 11.12.2019, which directed the Corporate Debtor’s release from CIRP. The NCLAT also instructed the Financial Creditor to bear the CIRP costs and fees of the RP.
Procedural Developments
Subsequently, the NCLT, Jaipur Bench, dismissed the company petition on 12.12.2019, aligning with the NCLAT’s directives. The RP later communicated the expenses and fees, totaling Rs. 17,68,67,767/-, to the Financial Creditor. Due to non-payment, the RP filed a contempt petition, while the Financial Creditor sought its dismissal, leading to the impugned order by the NCLT.
