Vires of Section 196 of the IBC - power of IBBI to levy fees on ...

Court Upholds IBBI's Authority to Levy Fees on Insolvency Professionals u/s 196 of IBC; No Constitutional Violation Found.

August 5, 2020

Case Laws     Insolvency and Bankruptcy     HC

Vires of Section 196 of the IBC - power of IBBI to levy fees on IP - excessive delegation - The IBBI does provide significant services, including in relation to IPs and that there is broad correlation between fees and services. Given the fact that direct or arithmetical correlation as between the fee received and service rendered is not necessary especially in the context of regulatory fees, Regulation 7(2)(ca) of the IP Regulations does not suffer from any constitutional infirmity on account of the absence of quid pro quo. - HC

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