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TMI Blog2022 (9) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned Order dated 24.03.2021, passed by the Learned Adjudicating Authority (National Company Law Tribunal, New Delhi, Court IV) in IA 1588/ND/2020 in IB/777/(ND)/2019 directing the Appellant Bank to pay Rs.10,20,858/- to Mr. Rakesh Kumar Jain/the Resolution Professional, on an Application IA 1588/ND/2020 preferred by the Resolution Professional seeking the payment of his fees. 2. Learned Counsel for the Appellant submitted that the Appellant is the sole 'Financial Creditor' of the reconstituted CoC and cannot be saddled with the liability of payment of the costs and fees of the RP. It is submitted that the remuneration and the expenses of the RP was fixed and approved by the 'Operational Creditor' who was the sole Member of the earlier Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 020. The CIRP costs were approved by the CoC prior to the inclusion of the Appellant in the CoC and hence, as per proviso to Regulation 12(3) of CIRP Regulations, 2016, the Appellant cannot state that since it had not ratified the CIRP costs and expenses, it cannot be saddled with the liability. Assessment: 4. The brief point which falls for consideration in this Appeal is whether the Appellant Bank, which is the sole 'Financial Creditor' of the reconstituted CoC be made liable to pay the fees of the CIRP Cost and RP, which the earlier CoC had ratified. The 'Operational Creditor' who had initiated the CIRP was initially the sole CoC Member which had ratified the fees and expenses at Rs.1Lakh per month. The total liability to be paid by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to pay the CIRP Costs and Fees. Regulation 12(3) of CIRP Regulations, 2016, reads as follows: "12. Submission of proof of claims. (3) Where the creditor in sub-regulation (2) is (a financial creditor under Regulation 8), it shall be included in the committee from the date of admission of such claim: Provided that such inclusion shall not affect validity of any decision taken by the committee prior to such inclusion." 5. The proviso in this Regulation clearly stipulates that if any decision is taken by the committee, prior to the reconstitution, which in this case is the ratification of the fees and the expenses, its validity will not be affected. Admittedly the CIRP Costs were approved by the COC prior to the inclusion of the App ..... X X X X Extracts X X X X X X X X Extracts X X X X
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