Mr Devarajan Raman Resolution ... vs Bank Of India Ltd
- CitationCompany Appeal (AT) (Insolvency) No. 646 of 2020
Ratio decidendi
The rule this decision rests on
The fixation of the fee payable to a Resolution Professional under the Insolvency and Bankruptcy Code is not a matter of the commercial wisdom of the Committee of Creditors; it is an adjudicatory question for the Adjudicating Authority, which must determine whether the fee and expenses are reasonable. Where the Adjudicating Authority has allowed the Resolution Professional's expenses in full and fixed a consolidated fee for the period actually worked, and that fee is not shown to be unreasonable in the circumstances, the appellate court will not interfere with it.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Mr. Devarajan Raman, Resolution Professional Poonam Drum & Containers Pvt. Ltd. ...Appellant
Versus
Bank of India Ltd. ...Respondent
Present:
For Appellant: Mr. Devrajan Raman and Ms. Anjali Sharma, Advocates. For Respondent:
ORDER
(Through Virtual Mode)
30.07.2020: While disposing of Company Appeal (AT) (Insolvency) No. 1092 of
2019, this Appellate Tribunal directed the Adjudicating Authority (National
Company Law Tribunal) Mumbai Bench to decide the fee of Resolution Professional
and cost of the Corporate Insolvency Resolution Process as incurred by the
Resolution Professional and to be borne and paid by the 'Bank of India Ltd.'
(Financial Creditor). Learned Adjudicating Authority in terms of the impugned order
dated 7th February, 2020 allowed all the expenditure incurred by the Resolution
Professional and directed payment of a consolidated amount of Rs.5 Lakhs + GST
towards the fee of the Resolution Professional.
Cont'd.../ -2-
2. Learned counsel for the Appellant submits that the fee is inadequate and
there are some judgments from this Appellate Tribunal where the fee has been left
to the commercial wisdom of the Committee of Creditors.
3. On a query, learned counsel for the Appellant replied that the Resolution
Professional has worked for about three months. Since the expenses have been
allowed in full and the consolidated amount of Rs.5 Lakh + GST has been allowed
as fee of the Resolution Professional for entire period, we find the same is not
unreasonable. Fixation of fee is not a business decision depending upon the
commercial wisdom of the Committee of Creditors. We accordingly find this appeal
lacking merit. The appeal is accordingly dismissed. No costs.
[Justice Bansi Lal Bhat] Acting Chairperson
[Justice Anant Bijay Singh] Member (Judicial)
[Kanthi Narahari] Member (Technical) am/gc
Company Appeal (AT) (Insolvency) No. 646 of 2020
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