Resolution Professional Fees: actual expenses and fees remain payable until approval of a withdrawal application; fee fixation lies with the creditors.

Resolution professional entitlement: the resolution professional is entitled to fees and reimbursement of actual expenses incurred from filing of a withdrawal application under Section 12A until the date of approval and handover, because insolvency process costs include such fees and Regulation 30A contemplates payment up to approval. Fee fixation authority: fixation of resolution professional fees is primarily a function of the committee of creditors and the adjudicating authority lacks general power to fix, enhance or reduce those fees except in the limited circumstance where the applicant failed to fix expenses, so the impugned reduction must be set aside and reconsidered in accordance with law.

---

---

Issues: (i) Whether the Resolution Professional is entitled to fees and expenses for the period after filing of an application for withdrawal under Section 12A of the Code until approval and handover; (ii) Whether the Adjudicating Authority has jurisdiction to fix or reduce the fee of the Resolution Professional without recommendation of the committee of creditors.

Issue (i): Entitlement to fees and expenses for period between filing of Section 12A application and approval/handing over.

Analysis: Regulation 30A(2)(a) refers to estimated expenses till date of filing, while Regulation 30A(7) expressly provides for deposit towards actual expenses incurred till the date of approval by the Adjudicating Authority as determined by the interim resolution professional or resolution professional. The Explanation to Regulation 34 read with Regulation 31(d) includes fees payable to the resolution professional within insolvency resolution process costs. The Resolution Professional remains duty bound to manage the corporate debtor until handover, and Regulation 30A(7) contemplates payment of actual expenses up to the date of approval of the withdrawal application.

Conclusion: The Resolution Professional is entitled to fees and expenses for the period after filing of the Section 12A application up to the date of approval by the Adjudicating Authority and handover.

Issue (ii): Competence of the Adjudicating Authority to fix or reduce the fee of the Resolution Professional without CoC recommendation.

Analysis: Regulation 34 assigns to the committee of creditors the function of fixing expenses to be incurred on or by the resolution professional, and Regulation 33 gives the Adjudicating Authority power to fix expenses only where the applicant has not fixed expenses under Regulation 33(1). Regulation 34B and Schedule-II set fee frameworks but do not confer a general power on the Adjudicating Authority to alter CoC-decided fees. The tribunal found no provision empowering the Adjudicating Authority to independently fix, enhance or reduce the fee except in the limited situation specified in Regulation 33.

Conclusion: The Adjudicating Authority does not have jurisdiction to fix or further reduce the fee of the Resolution Professional without the recommendation or decision of the committee of creditors, except in the specific circumstance where the applicant failed to fix expenses under Regulation 33.

Final Conclusion: The appeal is allowed; the Impugned Order reducing the Resolution Professional's fee is set aside and the matter is remanded to the Adjudicating Authority for fresh decision in accordance with law, recognising that fees and expenses are payable up to the date of approval of the withdrawal application and that fee fixation is primarily the prerogative of the committee of creditors.

Ratio Decidendi: Regulation 30A(7) of the CIRP Regulations requires payment of actual expenses incurred up to the date of approval of a withdrawal application, and Regulation 34 vests primary authority to fix resolution professional fees with the committee of creditors, limiting the Adjudicating Authority's power to circumstances specified in Regulation 33.

---