CIRP - Liability to pay transfer fee of 10% of the prevailing ...

Court Upholds 10% Transfer Fee on Kharagpur Land Due to Unapproved Resolution Plan, Dismisses Petition.

March 1, 2024

Case Laws     Insolvency and Bankruptcy     HC

CIRP - Liability to pay transfer fee of 10% of the prevailing market value of the Kharagpur land - The court determines the validity of notices issued by the respondents demanding a transfer fee, despite the absence of approval for Clause 15.15.5 of the Resolution Plan by the adjudicating authority or appellate forums. It holds that since the Resolution Plan was not fully approved, the claims therein are not frozen and binding, allowing the respondents to demand the transfer fee. - The Calcutta High Court dismisses the writ petition, ruling in favor of the respondents' right to demand a transfer fee, as Clause 15.15.5 of the Resolution Plan was not approved.

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