Jaysukhlal Naranbhai Gohel vs Centillion Solutions & Services Pvt. ...

Jaysuklal Naranbhai Gohel Appellant

Vs

Centillion Solutions & Services Pvt Ltd & Anr Respondent

Present:

Mr Pulkit Tare, Mr Mohit Bafna, Mr. Anup Jain, Mr. Bindhyachal Singh, Sr. Advocatge, Mr. Aditya Shekhar, Advocates for appellant.

Mr. Ashish Kothari, Advocate for R1

Mr Siddharth Shankar, Mr. Sarthank Saran, Ms Mallika Sundriyal, Advocates for R2.

Mr Pradeep Srivastava, IRP

ORDER

(Virtual Mode)

10.08.2021- The appellant who is aggrieved by the order dated 17.03.2021

in CP (IB) No.157/9/NCLT/AHM/2019 whereby a Section 9 of IBC application

was filed on behalf of one M/s Centillion solutions and Services Pvt Ltd,

Respondent No.1 (Operational Creditor) was allowed and Sh Pradeep

Srivastava was appointed as IRP under Section 13(1)(c) of the Insolvency &

Bankruptcy Code.

The matter was listed on 17.06.2021 whereby learned counsel for the

appellant informed this Tribunal that the parties have settled the matter

outside of the Court and further they informed that they have filed the soft

copy of the 'Terms of Settlement' held between the parties. Both the parties 2

were directed to file hard copy of the settlement within two weeks and the

matter was directed to be listed on 12.7.2021.

The matter was listed on 12.7.2021 when learned counsel for the

appellant informed that the parties have filed affidavit bringing on record the

settlement arrived between the parties on 9.7.2021. The terms of settlement

is at Page 2 to 5 of the affidavit filed on 9.37.2021 is part of the record of this

case. Further after going through the terms of settlement this Court noticed

that there is no whisper about the professional fee of the IRP and they were

directed to file an additional affidavit and the matter was directed to be listed

on 16.07.2021. On 16.7.2021 IRP, Shri Pardeep Srivastava appeared through

his counsel Mr. Siddharth Shanker and he was directed to file an affidavit in

hard copy indicating his fees and other expenses within two weeks. The

matter was directed to be listed on 10.08.2021. In terms of the directions an

affidavit was filed on behalf of Respondent No.2 and in terms of paras 6, 7, 8

and 9 of affidavit the fees and other expenses have been quoted as under:

"6. That the IRP has incurred following expenses, during CIRP

proceeding:

S.No. Particulars Amount

(in INR)

1 Publication in two News Papers 19467

2 Company Secretary fee 1200

3 Travelling expenses to Surat 3670 3

4 Notary fee 600

5 Postage 400

6 Stationery 250

7 Advocate fee 45000

8 Total 70587

Less Amount received from OC/Respondent No.1 25000

Balance Payable 45,587

7. That in regard to the professional fee of the IRP, it is stated that since,

vide order dated 6.4.2021, this Hon'ble Tribunal had stayed the

constitution of Committee of Creditors (in short 'COC) and thus, the "cost

of the interim resolution professional" including fee of the IRP could not

be decided in terms of Regulation 33 of the Insolvency and Bankruptcy

Board of India (Insolvency Resolution Process for Corporate Persons)

Regulations, 2016. Meanwhile, the present matter was settled by the

parties vide Settlement Agreement dated 10th May, 2021.

8. Accordingly as per prevailing practice, the IRP has proposed a minimal

fee of INR 1,00,000/- (Rupees One lakh only) per month from the date of

his appointment till the withdrawal of CIRP, in the present case. In this

regard, it is stated that the IRP was appointed vide order dated 4

17.03.2021, which was received by the IRP on 22.03.2021 and

accordingly mandate of IRP was started w.e.f. 22.03.2021. xxx":

"9. Accordingly, the IRP is eligible to receive a professional fee of INR

4,00,000/- (Rupees Four lakh only) for a period of Four (4) months, till

date (March 22nd, 2021 to July 30th, 2021), alongwith a total expense of

Rs.45,587/- (Rupees forty five thousand five hundred and eighty seven

only) Accordingly, IRP is entitled to receive a total amount of INR

4,45,587/- as against the 'Cost of Interim Resolution Professional', in

terms of in terms of Regulation 33 of the Insolvency and Bankruptcy

Board of India (Insolvency Resolution Process for Corporate Persons)

Regulations, 2016, which is required to be borne by the Respondent No.1

(Operational Creditor/Original Applicant).

After hearing the parties and going through the affidavit filed by IRP

and taking into consideration that the amount of fee quoted by IRP is Rs. 4

lakh (Rupees One lakh per month) as professional fee and Rs.45000/- as

expenses. After considering the whole matter we are of the considered opinion

that in the interest of justice, appellant is directed to pay Rs.2,50,000/- which

includes the cost also in place of total demand of Rs.4,45,500/-. Respondent

No.2 also agrees to this amount. The amount will be paid to the IRP through

RTGS. Learned counsel for the Respondent No.2 will inform the bank account

details of IRP through email to the learned counsel for the appellant latest by

Friday, 13.8.2021 and the appellant will pay the aforesaid amount through

RTGS within one week thereafter.

5

Further in view of the above, appeal stands allowed. Further the

proceedings before the NCLT under Section 9 of IBC is hereby quashed.

Appellant/corporate debtor is released from all the rigour of law and is allowed

to function independently through its Board of Directors from immediate

effect. IRP shall hand over all the papers to the appellant.

If the order is not complied, it will be open for the IRP, Respondent No.2,

to revive the proceedings by filing an appropriate application before this

Tribunal.

Copy of this order be uploaded on the website of NCLAT and a copy be

sent to the NCLT, Ahmedabad.

(Justice Anant Bijay Singh) Member (Judicial)

(Ms Shreesha Merla) Member (Technical) Bm/nn