Sanjeev Goel Managing Director Of Intec ... vs Uday Bhaskar Bhatt Erstwhile Irp Of ...

Company Appeal (AT) (Insolvency) No. 119 of 2024 & I.A. No. 380 of 2024 IN THE MATTER OF:

Sanjeev Goel ...Appellant(s)

Versus

Uday Bhaskar Bhatt Erstwhile IRP of Nirmiti ...Respondent(s) Stampings Pvt. Ltd.

Present: For Appellant : Mr. PBA Srinivasan, Ms. Nidhi Saini, Mr. Dhruv Parwal, Srishti Bansal, Sumit Swami, Pooja Kumari, V. Arvind, Advocates For Respondents : Mr. Akshay Petka, Mr. Pranav Shah, Mr. Aniket Malu, Mr. Aditya Nair, Advocates for RP, Mr. Uday Kumar Bhaskar Bhat, RP

ORDER

(Hybrid Mode)

17.01.2024: I.A. No. 380 of 2024. This is an application praying for

condonation of 11 days delay in filing the Appeal.

2. Ground taken in the Affidavit is that the Order was passed on 29th

November, 2023 which was uploaded on 13th December, 2023 and the

Appellant applied for certified copy on 21st December, 2023 which was

received on 29th December, 2023. Sufficient cause has been shown in Para 3

and 4.

3. Sufficient cause shown. Delay is condoned.

4. Heard Learned Counsel for the parties.

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5. This Appeal has been filed against the Order dated 29.11.2023 passed

in I.A. No. 1252 of 2023 and I.A. No. 4224 of 2023 where the Adjudicating

Authority has issued contempt notice against the Appellant and other

directors of the Corporate Debtor for non-compliance of Order dated

13.09.2023.

6. In the present case, CIRP commenced on 01st December, 2022 where

the Respondent No. 1 was appointed as IRP. In the meeting held on

02.01.2023 of the CoC, Resolution was passed for replacement of IRP with the

new one and on the said ground application was filed for replacement which

could be approved by the Order dated 2nd June, 2023. The Financial Creditor

informed the IRP that invoice sent with respect to the professional fees and

other expenses has not been ratified by the CoC on 07th July, 2023.

Application was filed seeking direction to CoC to ratify and remit the fee and

expenses of the IRP incurred thereafter time was taken by the Financial

Creditor to file a Reply. A Reply was filed to the I.A. No. 1252 of 2023 on 19th

August, 2023. On 13.09.2023, the Adjudicating Authority issued a show

cause notice for violation of order dated 01st December, 2022.

7. The Appellant's case is that an Affidavit was filed on 28th November,

2023 which was uploaded on the same day however Impugned Order was

passed issuing contempt notice on 29th November, 2023 and the explanation

which was submitted in the Affidavit filed on 28th November, 2023 has not

been adverted to.

Company Appeal (AT) (Insolvency) No 119/2024 3

8. Learned Counsel for the IRP submits that before the Adjudicating

Authority the Appellant has undertaken to clear the fees and expenses and

under Order dated 01st December, 2022 they were required to deposit Rs. 5

Lakh which has not been deposited. It is submitted that IRP is entitled for fee

till the order is passed by the Adjudicating Authority approving the

Replacement. Learned Counsel for the Appellant submits that Appellant has

already paid Rs. 1,10,000/- to cover fees and expenses incurred by the IRP.

9. Learned Counsel for the IRP submits that out of Rs. 1,10,000/-, Rs.

60,000/- has been transferred to existing IRP. He submits that the

Adjudicating Authority has rightly issued contempt notice since there is wilful

disobedience.

10. We have considered the submissions of Learned Counsel for the parties

and have perused the record.

11. The issue between the parties is regarding entitlement of fees of the IRP

whereas Appellant submits that IRP is not entitled to receive his fee till the

date when order was passed however Appellant has always been ready and

willing to pay reasonable fees to the IRP. CoC has not ratified any fee amount

to the IRP. Learned counsel for the Respondent submits that IRP is entitled

for fee till order is passed by the Adjudicating Authority and minimum fee is

Rs. 1 Lakh per month hence the amount communicated by the IRP i.e. Rs.

7,00,762/- which is professional fee, expenses, etc. is in accordance with

law.

Company Appeal (AT) (Insolvency) No 119/2024 4

12. There is no denial that in pursuance of order dated 01.12.2022, Rs. 5

Lakh has not been deposited. The stand taken by the Appellant is that said

amount is towards fee and expenses for the IRP and expenses are being

regularly paid. He submits that appellant is always ready to pay the

reasonable fees to the IRP and the Affidavit which was filed on 28th November,

2023, explanation has not been adverted to. Had the Adjudicating Authority

adverted to the Affidavit filed by the Financial Creditor on 28th November,

2023, there would not have been any observation that there has been wilful

disobedience of the Order. We thus are of the view that ends of justice be

served in setting aside the order dated 29th November, 2023 and remitting the

matter to the Adjudicating Authority for hearing afresh considering the

affidavit dated 28th November, 2023 filed by the Appellant and pass the order.

13. I.A. No. 1252 of 2023 filed by the IRP praying for his fee being still

pending. Let the Adjudicating Authority take final decision on I.A. No. 1252

of 2023 after hearing both the parties.

We dispose of the Appeal accordingly.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical)

Basant/nn

Company Appeal (AT) (Insolvency) No 119/2024