Settlement of Fee payable to RP - deduction of professional fees...

Settlement of Fee payable to RP - deduction of professional fees and expenses form such excess amount - Section 20 (2)(b) of the IBC authorizes the IRP to enter into such contracts which were entered into before the commencement of CIRP. In this case there was a new contract of insurance after the commencement of CIRP. The Appellant was aware with this situation that he cannot take such decision, therefore, he has circulated the quotations amongst the Members of CoC alongwith comparison of their premium amount. Thus, the aforesaid provision does not authorize the IRP to renew the insurance policy without approval of CoC at higher premium rate. - AT