Liquidator fee computation turns on actual realisation period; unsupported time exclusion was rejected and excess withdrawal had to be refunded.

Liquidator fee under Regulation 4(2) of the IBBI (Liquidation Process) Regulations, 2016 is determined by the actual period taken for realisation of assets. The claimed exclusion of time linked to the resumption of auctions on medical grounds was not accepted because the record showed that realisation occurred after more than one year. On that basis, the fee was computed under the third bucket, and the amount already withdrawn in excess of the admissible fee was held refundable, together with GST. The decision confirms that any exclusion of time from the fee-period calculation must be properly established on record.

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Issues: Whether the erstwhile resolution professional was entitled to calculate liquidator fee in the first or second bucket, and whether the amount already withdrawn in excess of the fee admissible under the liquidation regulations had to be refunded.

Analysis: The relevant fee under Regulation 4(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 depends on the period within which realisation of assets takes place. The exclusion claimed for the additional period relating to the resumption of auctions on medical grounds was not accepted, as the record showed that the effective realisation occurred after more than one year. The fee computation made on the third-bucket basis was therefore upheld, and the earlier withdrawal by the appellant was found to exceed the amount legally payable, with liability to refund the excess along with GST.

Conclusion: The appellant was not entitled to higher fee computation on the basis claimed, and the direction to refund the excess amount was sustained.

Final Conclusion: The appeal failed, and the determination of liquidator fee on the third-bucket basis was affirmed.

Ratio Decidendi: Under the liquidation fee framework, the applicable fee bucket is determined by the actual period of realisation, and a claimed exclusion of time will not be accepted unless it is properly established and justified on record.

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