TaxTMI 
TaxTMI 
2019 (1) TMI 1184
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....te Debtor has challenged the impugned order on the ground that the lump sum fees of Rs. 5 lakh fixed by the Adjudicating Authority for payment in favour of Interim Resolution Professional for performing duty for 27 days is excessive and arbitrary. 3. On the other hand according to learned counsel appearing on behalf of the Interim Resolution Professional the Interim Resolution Professional had claimed fee of Rs. 6.50 lakhs from the Financial Creditor by letter dated 24th July, 2018 for his functioning of 30 days. The Financial Creditor having accepted the same and on the basis of such assurance, he having appointed, the Interim Resolution Professional has right to claim Rs. 6.50 lakh for 30 days of functioning as finally agreed upon by the parties. 4. To decide the issue whether the payment of Rs. 5 lakh to Interim Resolution Professional for his working for 30 days is excessive and arbitrary or not, it will be desirable to refer to the relevant facts and provisions of Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code'). 5. The Financial Creditor before filing application under Section 7 of I&B Code has asked for consent of the Interim Resolution P....
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....the proposed insolvency professional for appointment as a resolution professional in accordance with the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016." 12. From clause 2 of Regulation 9, it is clear that the Application under Sub-regulation (1) should be accompanied by a certificate confirming the eligibility of the proposed Insolvency Resolution Professional. 13. Form-2 is the written communication to be submitted by the proposed Interim Resolution Professional, which is as follows: "FORM 2 (See sub-rule (1) of rule 9) WRITTEN COMMUNICATION BY PROPOSED INTERIM RESOLUTION PROFESSIONAL [Under rule 9 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016] Date................ To, The National Company Law Tribunal [Address] From, [Name and address of the registered office of the proposed interim resolution professional] In the matter of [name of the corporate debtor] Subject: Written communication in connection with an application to initiate corporate insolvency reso....
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....evant corporate debtor. I have reached this conclusion based on the following facts and/or opinion: - [Please give details]. ............................................................ (Signature of the insolvency professional) ................................. (Name in block letters) ............................................................................. (Name of insolvency professional entity, if applicable)" 14. From the aforesaid Form-2 r/w Regulation 9, it is clear that an Interim Resolution Professional, who has been proposed is required to give its Registration Number and other details to function as Interim Resolution Professional. 15. Normally, for the Corporate Insolvency Resolution Process, if it is successful, Resolution Applicant is required to pay the fee of the Resolution Professional and the resolution cost, as apparent from Section 30(2)(a) of the I&B Code. As per Regulation 33 of 'The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016', the applicant (Financial Creditor in the case) is required to fix the expenses to be incurred....
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....and other expenses. 20. The application under Section 7 was admitted on 13th June, 2018. The copy of which was received by the Interim Resolution Professional on 20th June, 2018. Finally the proceeding was terminated by judgment of this Appellate Tribunal dated 17th July, 2018, thereby we find that the Interim Resolution Professional has worked for 27 days. 21. In the aforesaid background, as we find that the 'Interim Resolution Professional' has performed duty only for 27 days and not incurred any expenses, except for travelling allowance which he is entitled to, we hold that Rs. 5 Lakh (Rupees Five Lakhs Only) allowed by the Adjudicating Authority is excessive. 22. The Adjudicating Authority has failed to notice that claim of Rs. 6 Lakh (Rupees Six Lakhs Only) was made by the firm namely 'Ensemble Resolution Professionals Pvt. Ltd.', payable to the Interim Resolution Professional. As the aforesaid firm is not eligible or entitled to receive any fees or any cut or commission from the fees of the 'Interim Resolution Professional', demand of Rupees Six Lakhs cannot be accepted. 23. Taking into consideration the facts and circumstances of the case, we are of the view that....