IRP awarded fees & expenses in CIRP resolution, debtor to pay within a month. Tribunal approves recommendations.

The Interim Resolution Professional (IRP) was awarded a total of Rs. 6,38,470 for fees and expenses, with the corporate debtor mandated to make the payment within a month. The Tribunal approved most of the recommendations made by the IBBI but included the cost of the second public announcement. The application was resolved accordingly, clarifying the responsibility for payment in the absence of a Committee of Creditors due to the termination of the Corporate Insolvency Resolution Process (CIRP).

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Issues Involved:
1. Entitlement of the Interim Resolution Professional (IRP) to professional fees and expenses.
2. Determination of the amount of fees and expenses.
3. Responsibility for payment of the fees and expenses.

Issue-wise Detailed Analysis:

1. Entitlement of the Interim Resolution Professional (IRP) to Professional Fees and Expenses:
The application was filed under Rule 11 of the National Company Law Tribunal Rules, 2016, seeking the release of Rs. 24,83,471 towards the IRP's professional fees and expenses incurred during the CIRP. The NCLAT had previously set aside the CIRP and directed the Adjudicating Authority to fix the IRP's fees for the period he functioned. The IRP claimed fees and expenses for the period from March 2020 to August 2020.

2. Determination of the Amount of Fees and Expenses:
The respondent objected, arguing that the NCLAT did not specify that the corporate debtor should pay the fees and that the expenses should be borne by the applicant and reimbursed by the CoC, which was not constituted in this case. The IBBI was directed to examine the matter and submitted a report, which found the claimed fees of Rs. 17,70,000 to be unreasonable and recommended a total fee of Rs. 2,00,000 (Rs. 40,000 per month). The IBBI also reviewed other expenses and suggested the following:
- Rs. 47,074 for the first public announcement.
- Rejection of Rs. 48,646 for the second public announcement.
- Rs. 1,75,000 for claim verification was not acceptable as it is the IRP's duty.
- Rs. 42,750 towards other expenses was acceptable.
- Rs. 3,00,000 for legal retainership was considered reasonable.

The applicant contested the IBBI's findings, arguing that the proposed fees were reasonable given the responsibilities and compared it to fees in other CIRP cases. The applicant also justified the second public announcement as compliance with NCLAT's directions.

3. Responsibility for Payment of the Fees and Expenses:
The Tribunal, after considering the submissions and the IBBI report, concluded that the IRP is entitled to receive:
- Rs. 2,00,000 towards total fees.
- Rs. 3,00,000 towards legal retainership.
- Rs. 42,750 towards other expenses.
- Rs. 95,720 for both public announcements.

The total amount approved was Rs. 6,38,470. The Tribunal directed the corporate debtor to pay this amount within a month, noting that since the CIRP was terminated and no CoC was constituted, the corporate debtor was responsible for the payment.

Conclusion:
The IRP is entitled to a total of Rs. 6,38,470 for his fees and expenses, which the corporate debtor must pay within a month. The Tribunal accepted most of the IBBI's recommendations but included the cost of the second public announcement. The application was disposed of accordingly.

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