Tribunal emphasizes natural justice in Adjudicating Authority's decision-making process

The Tribunal directed the Adjudicating Authority to consider IBBI Circulars and grant a hearing opportunity to the parties, emphasizing adherence to principles of natural justice. The Authority was instructed to pass a reasoned order considering all legal and factual contentions. The Tribunal's observations were not to influence the final decision, urging a fair and objective approach. Parties were allowed to present relevant facts and arguments for a comprehensive disposal of the case. The Company Appeal (AT)(CH)(Ins) No.407/2022 was disposed of, with connected applications closed.

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Issues:
Challenge to impugned order regarding payment to Resolution Professional's dues.

Analysis:
The Appellants filed Comp. App. (AT)(CH)(Ins) No.407/2022 against an order by the Adjudicating Authority directing Financial Creditors to pay the dues of the Resolution Professional within two weeks. The Appellants argued that the order was harsh and burdensome, affecting their rights. They highlighted Circulars by the IBBI emphasizing reasonable fees and expenses for professionals involved in insolvency proceedings. The Adjudicating Authority had warned of Contempt Proceedings if dues were not paid, leading to this appeal.

The Appellants contended that the fees of the Resolution Professional were approved by the Committee of Creditors, preventing them from objecting to the fees before the Adjudicating Authority. The Tribunal, without delving into the merits of the case, directed the Adjudicating Authority to consider the IBBI Circulars and provide a hearing opportunity to the Appellants and other parties. The Adjudicating Authority was instructed to pass a reasoned order adhering to the principles of natural justice, considering all factual and legal pleas before making a final decision.

The Tribunal emphasized that its observations should not influence the Adjudicating Authority's final decision, urging a fair, just, and objective approach in deciding the matter. The Appellants and other parties were given the liberty to present all relevant facts and legal arguments before the Adjudicating Authority for a comprehensive and final disposal of the case. The Company Appeal (AT)(CH)(Ins) No.407/2022 was disposed of with the connected IA/994/2022 and IA/995/2022 closed as well.

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