Appeal dismissed; merger validity not reopened, leasehold rights transferred to corporate debtor formed liquidation estate; section 36(4)(a)(iv) inapp...
NCLAT dismissed the appeal and upheld the impugned order refusing to fix professional fees for the Appellant (formerly the IRP) for the interim stay period. The AT held that the High Court's order operating as a "stay of proceedings" effectively precluded any CIRP functions between 14.08.2023 and 18.03.2025, rendering activities undertaken by the IRP during that exclusionary period non-operative for CIRP purposes. There was no evidence of effective discharge of official duties in furtherance of CIRP that would satisfy quid pro quo for fee entitlement. Consequently, denial of fees for the 19-month stay period was justified and the appeal was dismissed.
NCLAT dismissed the appeal and upheld the impugned order refusing to fix professional fees for the Appellant (formerly the IRP) for the interim stay period. The AT held that the High Court's order operating as a "stay of proceedings" effectively precluded any CIRP functions between 14.08.2023 and 18.03.2025, rendering activities undertaken by the IRP during that exclusionary period non-operative for CIRP purposes. There was no evidence of effective discharge of official duties in furtherance of CIRP that would satisfy quid pro quo for fee entitlement. Consequently, denial of fees for the 19-month stay period was justified and the appeal was dismissed.
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