Case Title:- IndusInd Bank Ltd. v. Mr. Rajendra K Bhuta
The National Company Law Appellate Tribunal heard an appeal filed against an NCLT Mumbai order dated 16.12.2021 wherein it directed the members of erstwhile COC to pay Rs 30,81,719/- as reimbursement to Resolution Professional.
The brief facts of the case are that CIRP was initiated against the Corporate Debtor on 05.03.2018 and the Committee of Creditors comprising of IndusInd Bank and Abhyudaya Co-operative Bank Limited was constituted on 26.06.2018. The Suspended Board of Directors filed an appeal before NCLAT against it and the same was dismissed by NCLAT. Thereafter, they moved the Supreme Court via a Civil Appeal and the top court vide its order dated 26.11.2018 stayed the insolvency proceedings and vide order dated 02.09.2019 set aside the CIRP (Corporate Insolvency Resolution Process).
The issue in the instant appeal before the Appellate Tribunal is that the Adjudicating Authority has calculated the fee of the Resolution Professional during the period 13th June 2018 to 02nd September 2019 amounting to Rs. 30,81,719/-.
Accordingly, the Appellate Tribunal modified the operating part of the Impugned order in this regard to the effect that the fee will not be payable for the time period during which there was a stay on the insolvency proceedings and observed that “When the Hon’ble Supreme Court by Interim Order dated 26th November, 2018 has stayed the insolvency proceedings which proceedings ultimately were set aside by the final Judgment dated 2nd September, 2019, we are of the view that Resolution Professional is not entitled for any fee after 26th November, 2018. The RP is entitled for a fee from 13th June, 2018 to 25th November, 2018 hence the Order of the Adjudicating Authority in Paragraph 17 is modified to the above extent that RP fee shall be entitled to fee from the period 13th June, 2018 to 25th November, 2018. No fee shall be entitled with effect from 26th November, 2018.”