TaxTMI 
TaxTMI 
2021 (3) TMI 1242
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....nted to value the plant and machinery at 115 sites of the Corporate Debtor across India. The Appellant's appointment fee (Rs. 7.50 lakhs plus applicable GST) and other expenses were ratified by the Committee of Creditors ("CoC"), led by the second Respondent, in its meeting held on 9 December 2019. 4. The Appellant claims to have conducted valuation work of over eighty-four sites and to have visited forty sites. Further, several outstation meetings were also stated to have been conducted between the Appellant and the first Respondent. The Appellant has stated that he paid for expenses in the sum of Rs. 52,000. 5. The National Company Law Appellate Tribunal ("NCLAT" or "Appellate Authority") set aside the initiation of CIRP against the Corporate Debtor by an order dated 18 December 2019. The NCLAT remanded the matter back to the NCLT to decide on the issue of CIRP costs. By an order dated 20 December 2019, the NCLT decided on the fee of the RP and reduced it by 20% from the fee ratified by the CoC. 6. In view of the order dated 18 December 2019 of the NCLAT, the first Respondent cancelled the appointment of the Appellant on 19 December 2019. In relation to the fee payab....
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....fter the initiation of the CIRP under the IBC, in a situation where the CIRP is eventually set aside by the Adjudicating Authority or, as the case may be, Appellate Authority. 11. The submission of the Appellant is that neither the NCLT nor the NCLAT have applied their mind to the professional charges payable to him in his capacity as a registered valuer. According to the Appellant, he had completed the valuation of eighty-four sites and undertaken expenses of Rs. 52,000 in the valuation exercise. During the course of the hearing Mr. Manish Paliwal, learned Counsel appearing on behalf of the Appellant, also submits that an amount of Rs. 35,000 was paid towards GST by the Appellant. But the real issue which has been sought to be canvassed in the appeal is that in a situation such as present, where the CIRP was set aside by the Appellate Authority, there has to be within the framework of the IBC, a modality for determining the claim of a professional valuer such as the Appellant. The NCLT came to the conclusion that it was functus officio. The NCLAT declined to exercise its appellate jurisdiction. 12. The expression 'insolvency resolution costs' has been defined in Sect....
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....ution process costs. Explanation.- For the purposes of this Regulation, "expenses" include the fee to be paid to the interim resolution professional, fee to be paid to insolvency professional entity, if any and fee to be paid to professionals, if any, and other expenses to be incurred by the interim resolution professional. 15. "Resolution professional costs" are defined in Regulation 34: 34. Resolution professional costs.- The committee shall fix the expenses to be incurred on or by the resolution professional and the expenses shall constitute insolvency resolution process costs. Explanation.- For the purposes of this Regulation, "expenses" include the fee to be paid to the resolution professional, fee to be paid to insolvency professional entity, if any, and fee to be paid to professionals, if any, and other expenses to be incurred by the resolution professional. 16. Where an application for withdrawal is filed Under Section 12A of the IBC, a provision has been made in Regulation 30A(7) in regard to the deposit of expenses. Regulation 30A(7) provides as follows: 30A. Withdrawal of application. [...] (7) Where the application is approved Under Sub-regulatio....
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.... (c) any question of priorities or any question of law or facts, arising out of or in relation to the insolvency resolution or liquidation proceedings of the corporate debtor or corporate person under this Code."] of the IBC in the following terms: 71. The institutional framework under the IBC contemplated the establishment of a single forum to deal with matters of insolvency, which were distributed earlier across multiple fora...Therefore, considering the text of Section 60(5)(c) and the interpretation of similar provisions in other insolvency related statutes, NCLT has jurisdiction to adjudicate disputes, which arise solely from or which relate to the insolvency of the Corporate Debtor. However, in doing do, we issue a note of caution to the NCLT and NCLAT to ensure that they do not usurp the legitimate jurisdiction of other courts, tribunals and fora when the dispute is one which does not arise solely from or relate to the insolvency of the Corporate Debtor. The nexus with the insolvency of the Corporate Debtor must exist. (emphasis supplied) 19. Though the CIRP was set aside later, the claim of the Appellant as registered valuer related to the period when he was disch....