Reasonableness of insolvency professional fees upheld after CIRP work and delay were attributed to the CoC member.

Fees of the erstwhile Interim Resolution Professional and CIRP expenses were examined for reasonableness, with the Appellate Tribunal noting that the IRP had carried out the necessary CIRP steps, including public notices, claim verification, committee constitution, reports, information memorandum and resolution plan-related work. The delay in CIRP progress and in approving liquidation was attributed to the sole CoC member, which repeatedly deferred decisions and sought higher internal approvals. The IRP had already reduced its claimed fee, and the Adjudicating Authority further moderated the expenses on the material before it. On these facts, the fees and expenses were held reasonable and no interference was warranted.

---

---

Issues: Whether the fees of the erstwhile Interim Resolution Professional and the CIRP expenses, as approved by the Adjudicating Authority, were unreasonable or excessive so as to warrant interference in appeal.

Analysis: The IRP had carried out the steps required for the conduct of the CIRP, including public announcements, claim verification, constitution of the Committee of Creditors, filing of applications and reports, preparation of the information memorandum, request for resolution plan, evaluation matrix and participation in hearings. The delay in progress of the CIRP and in approving the liquidation proposal was attributable to the sole CoC member, which repeatedly deferred decisions and sought internal approval from higher authorities. The record also showed that the Appellant had not challenged the prior order attributing delay to it. The IRP had initially claimed higher fees but voluntarily reduced the amount to Rs. 1 lakh per month, and the expenses were also reduced by the Adjudicating Authority after considering the material placed before it.

Conclusion: The fees and expenses fixed by the Adjudicating Authority were found to be reasonable, and no ground for interference was made out.

---