Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2016 Insolvency and Bankruptcy Code |
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 – Costs and expenses incurred by Resolution Professional (RP) – In pursuance to an email of the respondent, the appellant submitted his bid for appointment as an Interim Resolution Professional – Corporate Insolvency Resolution Process (CIRP) was initiated by the order of NCLT and the appellant was appointed as Interim Resolution Professional – The order of NCLT was set aside in appeal and the proceedings were remitted back to determine fee and costs of the CIRP incurred by appellant – Appellant addressed the letter to respondent showing the amount payable as fees and cost – The total amount was of Rs 14,75,660/- – Amount of Rs. 5,66,667/- was reimbursed by the respondent leaving the balance amount Rs 9,08,993/- – Respondent replied to the appellant’s letter stating that upon verification, the costs and fees were found in conformity with both the technical and financial bid, based on which the assignment was awarded – Appellant filed application before NCLT for obtaining release of remaining cost and fees – NCLT directed the respondent to pay the expenses incurred and an amount of Rs 5,00,000 plus GST towards the fee of the RP – Appeal was filed by appellant for challenging reduction in cost and fees by NCLT – NCLAT dismissed the appeal of appellant and held that the amount of Rs 5,00,000/ - as fee, in addition to the expenses, appears to be reasonable – Before the Supreme Court, the appellant submitted that both NCLT and NCLAT erroneously have not scrutinized the factual position and awarded the ad hoc amount – On appeal, held: Considering the respondent’s reply to the letter of appellant and absence of consideration of submissions made by appellant by the NCLT – Neither the basis of the claim nor its reasonableness was considered by the Adjudicating Authority – The Appellate Authority proceeded in an ad hoc manner – Both the orders suffers from abdication in the exercise of jurisdiction – Remand ordered – The order and judgement of NCLAT and NCLT set aside – NCLT to decide the matter afresh – Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 – Regulation 34. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2022 INSC 14 |
Petitioner | Devarajan Raman |
Respondent | Bank Of India Limited |
SCR | [2022] 1 S.C.R. 975 |
Judgement Date | 2022-01-05 |
Case Number | 3160 |
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