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TMI Blog2021 (8) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... during 17.10.2019 to 11.12.2019 were ratified in the 3rd CoC meeting dated 13.12.2019. The IRP has also placed on records documents for expense of ₹ 88,474/- made during 12.12.2019 to 07.01.2020 however, the same could not be ratified as the CIRP was set aside and CoC meeting could not be conducted for the same. The Applicant who has filed the application under Section 7 or 9 of the Code i.e. Respondent No. 3 in the present application is liable to bear all the expenses as explained in sub-regulation 4 of Regulation 33, and he can get the amount reimbursed by the Committee of Creditors i.e. Respondent No. 1. Hence, the IRP shall be paid his profession fee i.e. ₹ 1,25,000/- per month plus taxes and all expenses from 17.10.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CoC discussed, approved and ratified the expenses of ₹ 83,032/- incurred by the applicant. The CoC further approved an amount of ₹ 1, 25,000/- as the fee of the applicant for his tenure of 30 days as the IRP and that was paid out of the amount of ₹ 2,00,000/- remitted by the Operational Creditor. The CoC further passed a Resolution to replace the IRP/applicant and appoint Mr. Anup Kumar as the Resolution Professional. 4. It is submitted that M/s. Noble Cooperative Bank Limited filed an application bearing No. 478/2019 before the Adjudicating Authority to replace the applicant with Mr. Anup Kumar as the Resolution Professional. The said application could not be decided till 07.01.2020 therefore, the applicant/IRP kept p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctors and also remitted back the case to the Adjudicating Authority to determine the fees, cost and expenses incurred by the IRP. 7. The Adjudicating Authority vide order dated 04.03.2020 issued notice to the Respondents and M/s. Noble Cooperative Bank Ltd. the Respondent No. 1 filed its reply on 29.12.2020. The Respondent No. 1 submits that the Applicant has proposed an exorbitant fee of ₹ 4,00,000/- per month plus applicable taxes for the assignment of acting as IRP knowing the fact that the Corporate Debtor did not cash liquidity in the company. Considering the liquidity and financial feasibility of the said issue, the Respondent No. 1 being the sole Financial Creditor, decided and approved a professional fee of ₹ 1,25,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no cash flow in the company to bear the expenses. The above stated view of the CoC is duly documented in the minutes of the meeting. The applicant had fixed the professional fee knowing that the applicant shall be replaced and the application for the same was pending before the Adjudicating Authority. 9. The Respondent No. 1 further submits that in the third CoC meeting dated 13.12.2019 issues relating to raising of interim finance was raised by the Applicant, which were irrelevant as the Hon'ble NCLAT vide order dated 05.12.2019 observed and directed the Applicant that the company remains as an ongoing concern and the Applicant will take assistance of the (Suspended) board of directors and the employees. There was no locus of appo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear the expenses which shall be reimbursed by the committee to the extent it ratifies. (4) The amount of expenses ratified by the committee shall be treated as insolvency resolution process costs. [Explanation. - For the purposes of this regulation, expenses include the fee to be paid to the interim resolution professional, fee to be paid to insolvency professional entity, if any, and fee to be paid to professionals, if any, and other expenses to be incurred by the interim resolution professional] 12. On perusal of the above mentioned Regulation 33(1) (2), it is understood that the Operational Creditor being the Applicant to the main IB application shall deposit the expenses, initially. As per the minutes of the First CoC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le NCLAT was of the view that the Applicant who has filed the application under Section 7 or 9 of the I B code is liable to incur {he expenses of resolution professional as per sub-regulation (1) of Regulation 33 of Insolvency and Bankruptcy Board of India (Insolvency Resolution process for Corporate Persons) Regulations, 2016. Thus the applicant is liable to bear all the expenses as explained in sub-regulation 4 of Regulation 33, and he can get the amount reimbursed by the Committee of Creditors to the extent the amount ratified by the Committee. The expenses will include all expenses as explained above in clause (4) of Regulation 33. 16. We have observed that the expenses of ₹ 83,032/- made during 19/09/2019 to 17.10.2019 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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