IRP can’t claim any cost or fee in addition to fee already paid when NCLAT had stayed the entire CIRP

  • Blog|Insolvency and Bankruptcy Code|News|
  • 89 Views
  • |
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 6 May, 2022

IRP; NCLAT; Corporate insolvency resolution process

Case Details: Mritunjay Kumar Member of the Suspended Board of Director Unibera Developers (P.) Ltd. v. Propertree Real Estate Solutions (P.) Ltd. - [2022] 137 taxmann.com 356 (NCL-AT)

Judiciary and Counsel Details

    • Justice Ashok Bhushan, Chairperson
    • Dr. Ashok Kumar Mishra and Dr. Alok Srivastava, Technical Member
    • Abhishek Anand and Kunal Godhwani, Advs. for the Appellant.
    • Gautam SinghalGaurav MittraAmar VivekShalya AgarwalAditya GauriArvind Shukla and Saket Shubham, Advs. for the Respondent.
    • Dhananjaya Sud, Adv. for the Petitioner. 
    • CS Gupta, Adv. for the Respondent.
    • Gautam SinghalShubham SaketAbhishek AnandArvind ShuklaAditya Gauri and Dhananjaya Sud, Advs. for the Appearing Parties.

Facts of the Case

In the instant case, questions that arose before the Appellate Tribunal were as follows

    1. Whether Interim Resolution Profession was entitled to claim any fees where the Appellate Tribunal had stayed the entire CIRP?
    2. Whether the approval of Committee of Creditors was required when the application for withdrawal of CIRP was filed before the constitution of CoC?

NCLAT Held

The NCLAT held that where Appellate Tribunal had stayed the entire CIRP, there was no question of incurring any cost or claiming any fee by IRP after the said order and the fees already paid to IRP would be sufficient towards payment of fee.

With regard to the question of withdrawal of CIRP, the NCLAT held that where the application for withdrawal of CIRP was filed before the constitution of Committee of Creditors, there was no requirement to take prior approval of CoC for withdrawal of CIRP application as required u/s 12A of IBC.

Case Review

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied