Amarpal vs Ansal Properties And Infrastructure ...

Amarpal ...Appellant IRP for M/s Ansal Properties and Infrastructure Ltd.

Versus

M/s Ansal Properties and Infrastructure Ltd. & Ors. ...Respondents

For Appellant: Mr. Shohit Chaudhry, Advocate

For Respondent: None

ORDER

(Virtual Mode)

02.12.2021 Heard.

This Appeal has been filed by Insolvency Resolution Professional (IRP)

challenging the Order of the Adjudicating Authority dated 05.10.2021 with

regard to fee by which the Adjudicating Authority (National Company Law

Tribunal), New Delhi Bench II has determined the total amount of fee to be

paid to IRP. The IRP was appointed by Order dated 17.03.2020 by which

Corporate Insolvency Resolution Process (CIRP) was initiated against the

Corporate Debtor. The CIRP ultimately came to be set aside by this Appellate

Tribunal vide Judgement dated 14th August, 2020. While allowing the Appeal.

this Tribunal observed:

"The Adjudicating Authority will fix the fee of 'Interim

Resolution Professional' for the period he has

functioned."

2

After the aforesaid Order, the IRP has filed I.A. No.3976 of 2020

claiming to be paid a fee of Rs.24,83,471/-. The Adjudicating Authority has

considered the Application filed by the IRP and directed the IBBI (Insolvency

and Bankruptcy Board of India) vide Order dated 23.12.2020 to examine the

claim and submit a Report. The IBBI submitted a Report in compliance to the

Order of the Adjudicating Authority. In the Report, IBBI has recommended

that the cost of first public announcement of Rs.47,074/- may only be given

and with regard to second publication, the cost of Rs.48,646/- to be

disallowed. Further, there were other recommendations of the IBBI.

After considering the Report of the IBBI and after hearing the Counsel

for the Appellant, the Adjudicating Authority disposed off the matter and

allowed the total fee of Rs.6,38,470/- giving brake-up in paragraph 19 of the

Judgement. Following was held by the Adjudicating Authority in Paragraphs

- 19 and 20:-

"Accordingly, we conclude that the IRP is entitled to receive the fee and expenses in the following manner:-

1. Towards total fee, Rs.2,00,000/- (calculated at the rate of Rs.40,000/- per month);

2. Towards legal retainership - Rs.3,00,000/-

3. Towards other expenses - Rs.42750/-; and

4. In addition to Rs.47074 for first public announcement, Rs.48646/- for second Public announcement - (Total Rs.47074+48646= Rs.95,720/

5. Accordingly, we hold that the IRP is entitled to receive a total amount of Rs.6,38,470/- (Rs.

Six lakh thirty eight thousand four hundred

Company Appeal (AT) (Ins) No.981 of 2021 3

seventy) only towards his fee and other expenses.

6. So far as the responsibility to pay the cost is concerned, since, the CIRP is terminated and there is no COC. We also observe, no specific direction has been given by the Hon'ble NCLAT hence, in our considered view the aforesaid amount will be paid by the Corporate Debtor and not by the applicant.

20. Accordingly, we direct the Corporate Debtor to pay total amount of Rs.6,38,470/- (Rs. Six lakh thirty eight thousand four hundred seventy) only towards his fee and other expenses, within a month from today."

Learned Counsel for the Appellant submits that the Adjudicating

Authority has reduced the fee of the Appellant without giving any reason. He

submits that there is no consideration in the Order regarding the different

claims of the Appellant under various heads.

We have perused the Order of the Adjudicating Authority and we are of

the view that there is full consideration of entire claim of the IRP. The

Adjudicating Authority took care of calling a Report from IBBI, which Report

was submitted in accordance with the claim, and with addition of an amount,

the final orders have been passed.

Admittedly, the CIRP proceedings were quashed and set aside by this

Appellate Tribunal within a period of 5 months. We do not find that there is

Company Appeal (AT) (Ins) No.981 of 2021 4

any error committed by the Adjudicating Authority in awarding the reasonable

and necessary fee to which IRP was entitled.

We do not find any merit in the Appeal. The Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Justice Jarat Kumar Jain] Member (Judicial)

[Dr. Alok Srivastava] Member (Technical) rs/nn

Company Appeal (AT) (Ins) No.981 of 2021