Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Insolvency and Bankruptcy Code 2016: s.60(5)(c) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Insolvency and Bankruptcy Code, 2016: s.60(5)(c) – Dispute regarding fee of valuer – Pursuant to the initiation of CIRP against corporate debtor, first respondent was appointed as the Resolution Professional (RP) – RP appointed appellant as a registered valuer of the Plant and Machinery of the corporate debtor of 115 sites and a fee of Rs.7.50 lakhs and other expenses were ratified by the Committee of Creditor (CoC) – Appellant claims to have conducted valuation work of 84 sites and he paid for expenses of Rs.52,000 – NCLAT set aside the CIRP against the corporate debtor and remanded the matter to NCLT on the issue of CIRP costs – NCLT decided on the fee of RP and reduced it by 20% from the fee ratified by CoC – In view of order of NCLAT, RP cancelled the appointment of the appellant and requested appellant for waiver of fee – In return, appellant agreed to reduce his fee by 25% along with the expenses – However, RP informed appellant that the fee as ratified cannot be paid and paid a sum of Rs.50,000 – Appellant filed application under s.60(5) before the NCLT challenging non payment of fees – However, the NCLT dismissed the application on the ground that it had been rendered functus officio – NCLAT declined to exercise its appellate jurisdiction – Hence the instant appeal – Held: Though the CIRP was set aside later, the claim of the appellant related to the period when he was discharging his functions as a registered valuer appointed as an incident of the CIRP – NCLT ought to have exercised its jurisdiction under s.60(5)(c) of the IBC – In exercise of jurisdiction under Art.142 of the Constitution, it is directed that in a situation such as the present case, NCLT is sufficiently empowered under s.60(5)(c) of the IBC to make a determination of the amount which is payable to an expert valuer as an intrinsic part of the CIRP costs – Regn.34 of the IRP Regulations defines ‘insolvency resolution process cost’ to include the fees of other professionals appointed by the RP – Whether any work has been done as claimed and if so, the nature of the work done by the valuer is something which need not detain this Court, since it is purely a factual matter to be assessed by NCLT – The availability of a grievance redressal mechanism under the IBC against an insolvency professional does not divest the NCLT of its jurisdiction under s.60(5)(c) of the IBC to consider the amount payable to the appellant – In any event, the purpose of such a grievance redressal mechanism is to penalize errant conduct of the RP and not to determine the claims of other professionals which form part of the CIRP costs – The impugned judgment and order of the NCLAT is set aside – The proceedings accordingly is remitted back to the NCLT for determining the claim of the appellant for the payment of the professional charges as a registered valuer appointed by the RP in pursuance of the initiation of the CIRP. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2021 INSC 184 |
Petitioner | Alok Kaushik |
Respondent | Mrs Bhuvaneshwari Ramanathan And Others |
SCR | [2021] 4 S.C.R. 521 |
Judgement Date | 2021-03-15 |
Case Number | 4065 |
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