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TMI Blog2022 (9) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... de, 2016 (hereinafter referred as 'IBC'), is filed challenging the order passed by National Company Law Tribunal, Special Bench, New Delhi (hereinafter referred as 'Adjudicating Authority') in Company Petition (IB) No. 415(PB)/2019 dated 07.06.2022 whereby the claim of the Resolution Professional for payment of fee, is accepted. 2. The parties to the appeal preferred as arrayed before the NCLT, Delhi for convenience. The Resolution Professional is appointed by the impugned order dated 07.06.2022 to complete the Corporate Insolvency Resolution Process (hereinafter referred as 'CIRP'), accordingly he constituted CoC and conducted 4 Meetings of Committee of Creditors (hereinafter referred as 'CoC') incurring expenses, besides engaging an advocate on payment of fee. But the same has not been paid to the Insolvency Resolution Professional though the remuneration and expenses were approved by CoC but he died before the completion of process. The main contention of the Respondents before the Adjudicating Authority was that he was having only 25.54% of voting right being creditor and cannot be compelled to pay half of the share of remuneration and expenses and that he is not liable to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f first meeting of the Committee of Creditors, the details of which is as under: Sr. No. Particulars Amount (Rs) 1. Fees of Interim Resolution Professional during the first month of resolution process (excluding applicable taxes, if any) 1,00,000 2. Travelling expenses of Interim Resolution Professional and other team members 15,000 3. Office staff salary, printing, stationery and other office expenses 10,000 4. Public Announcements 58,800 5. Preparation of demand drafts and other expenses for filing of applications with the Hon'ble NCLT, Principal Bench and New Delhi Bench 6,020 6. Lawyers' fee for preparation, filing of applications with NCLT, Principal Bench and New Delhi Bench and appearances before the Hon'ble Tribunal. 1,69,000 7. Cost of conducting Meeting of Committee of Creditors 1,357 Total expenses (in Rs.) 3,60,177 The matter was discussed and the Chairman informed the committee that the CIRP expenses as described above from the date of commencement of the CIRP process (including the fee of IRP for the period) till the date of the first meeting total up to Rs.3,60,177/-. He further informed the members that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inunder: "Item - 06 To ratify and approve the remuneration and expenses incurred by the Resolution Professional from the date of second meeting till the date of this meeting. The Chairman placed before the members a list of expenses incurred from the date of second meeting of the Committee of Creditors till the date of this meeting, the details of which is as under: Sr. No. CIRP process cost Amounts (Rs) 1. Fees of Resolution Professional from 16.02.2019 till the date of this meeting (excluding applicable taxes, if any) 82,492 2. Preparation of demand drafts for filing of applications with the Hon'ble NCLT 1,010 3. Lawyers' fee for appearances before the Hon'ble NCLT, Principal Bench and New Delhi Bench and Appellate Tribunal. 3,68,500 4. Electricity expenses 58,734 5. Meeting expenses, stamp paper, notary, speed post expenses 5,000 Total (in Rs.) 5,15,736 The members took tone of the same and ratified the expenses." 9. Thus, the total amount to be paid to erstwhile RP is Rs. 16,09,402/- (Rupees sixteen lakhs nine thousand four hundred and two only) (Rs. 3,60,177/- + Rs. 7,33,494/- + Rs.5,15,736/-), approved in the CoC meetin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resolution professional to the extent ratified under regulation 33; (d) Expenses incurred on or by the resolution professional fixed under regulation 34; and (e) Other costs directly relating to the corporate insolvency resolution process and approved by the committee." 12. A conjoint reading of Regulation 25A, 26 and 27 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 and Regulation 31 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the expenses incurred under the different heads covered by Regulation 31 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 shall be paid by the creditors. Insolvency Process cost is defined under Section 5(13)(e) which runs as follows: "5(13)(e) Insolvency resolution process costs" means- (e) any other costs as may be specified by the Board;" 13. In the instant case, the cost incurred by erstwhile RP and remuneration payable to him was approved by CoC in the CoC meetings, the total amount payable is Rs. 16,09,402/-, thus, the legal heirs of deceased RP are entitled to claim the remuneration payable to erstwhile RP and cost incurred by h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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