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Judgment
ORDER
Heard the Appellant Mr. CA V. Venkata Sivakumar (appearing in person) Erstwhile Interim Resolution Professional of PRC International Hotel Ltd.
According to the Appellant that during the period under consequence of his appointment of ‘Interim Resolution Professional’ of the ‘Corporate Debtor’ had incurred ‘Legal expenses’ in defending the compliances instituted by the 1st Respondent before the Insolvency Bankruptcy Board of India and ICAI and the same is properly approved by means of invoices submitted by him.
The grievance of the Appellant is that his remuneration on being appointed as “Interim Resolution Professional” of the Corporate Debtor was fixed at Rupees one lakh only, out of which Rupees Fifty Thousand Only was paid by the 1st Respondent.
It is the contention of the Appellant that he had incurred numerous legal expenses and prior to the balance payment being paid to him, he was removed from the position of ‘Interim Resolution Professional’ and that he had made a claim before the then ‘Interim Resolution Professional’ for payment of balance remuneration coupled with Legal expenses incurred thereto. However, the ‘Committee of Creditors’ had rejected the said claim.
The Appellant points out that the Interim Order dated 23.11.2021 in MA/98/2020 in CP/540/IB/018 passed by the Adjudicating Authority (National Company Law Tribunal, Chennai Bench 1, Chennai) is contrary to law, and facts of the case.
The Appellant proceeds to make submission that the Appellant being an officer of the Court and the fact of the matter is remuneration agreed was not paid, by this material aspect was not properly appreciated by the Adjudicating Authority (National Company Law Tribunal, Chennai Bench-1, Chennai) at the time of passing the Impugned Order, which had resulted in serious miscarriage of justice.
At this juncture, this ‘Tribunal’ relevantly points out that in MA/98/202 in C /IB/ 2018 the Adjudicating Authority (National Company Law Tribunal, Chennai Bench-1, Chennai) at paragraph 4 to 7 had observed the following:
4.“The applicant further claims to have incurred certain legal expenses in defending various matters and for defending continuous litigation with IBBI and ICAI for which he has raised his own advise (attached page number 113 to 114 of the type set).
5.Under page ‘e’ page 7 of the application, the Applicant has written as under:-
“Later I came to know from Mr. Inbaraj that my bill was rejected by COC”
6.Applicant has not attached with the typed set any approval from COC regarding his fees and expenses.
7.Applicant has attached in the typed set (page 108 to 110) order dated 15.11.2019 of the Indian Institute of Insolvency Professionals of ICAI (IIIPI) on a complaint filed by Mr. Gagan Bothra.R.1. Excerpts from Page 2 of the said order dt. 15.11.2019 on Allegation 4 the Committee observation (relevant portion) is reproduced below:-
“Further from the documents available on record it has also been observed that approval of fee of the complainee amounting to Rs.1.5 lakhs instead of Rs. 1 Lakh (out of which Rs. 50000 was duly paid by the complainant in cash) was placed before the COC for approval. The CoC in its meeting held on 19.9.2018 rejected the fee proposed by the complainee, by a majority of 75.7% votes. Since the request for approval of the fee proposed by the IRP has already been rejected by the CoC the matter need not be pursued further”. and accordingly, dismissed the M.A. No.90 of 2020 without costs.
The Appellant to lend support to the contention that the Impugned Order suffers from legal infirmity proceeds to place reliance on the Judgment of this Tribunal in the Company Appeal ((AT) (INS) No. 08 and 43 of 2018 dated 06.03.2018 whereby and whereunder at paragraph No.5 to 8 has been observed as follows:
5.“ The main plea taken by the appellant is that the Committee of Creditors are not liable to bear any fees of the Insolvency Resolution Professional.
6.The question arises for consideration in this Appeal is whether the Committee of Creditors are liable to bear the expenses incurred by the Insolvency Resolution Professional or not.
7.Learned counsel appearing on behalf of the Appellant reiterated the argument that the Committee of Creditors are not liable to pay the expenses of the Insolvency Resolution Professional.
8.Learned counsel appearing on behalf of the 2nd Respondent – IFFCO TOKIO General Insurance Co. Ltd., another member of the Committee of Creditors submitted that the expenses of Resolution Professional should be borne by the Committee of Creditors and thereby supported the impugned order(s).
This ‘Tribunal’ has heard the contention on behalf of the Appellant, who appears in person and noticed the same.
Considering the fact that the Appellant had failed to furnish any written communication between himself and one Mr. Gagan Bothra (Applicant) in CP No.540 (IB) of 2018. Acceding the same, fee payable to the Appellant/Applicant and as such the balance of claim, this Tribunal comes to a consequent conclusion that the Instant Company Appeal stands Sans merits.
In this connection, this ‘Tribunal’ on going through the Impugned Order dated 23.11.2021 in MA/98/2020 in CP/540/IB/2018 is of the earnest opinion that the ‘Adjudicating Authority’ (National Company Law Tribunal, Chennai Bench-1, Chennai) had rightly opined by the COC had not approved the legal expenses payable to the Interim Resolution Professional and the legal cost incurred by him as required, in terms of the ingredients of the Regulation 33 that the Resolution Professional Regulations and further that the claim of the IRP could not be considered at this stage. Suffice it for this ‘Tribunal’ to make a significant mention that the Impugned Order passed by the ‘Adjudicating Authority’ National Company Law Tribunal, Chennai Bench-1, Chennai in MA/98/2020 in CP/540/IB/2018 does not suffer from any material irregularity or patent illegality in the ‘Eye of Law’. Viewed in that perspective, the Instant Company Appeal fails.
In fine, the Company Appeal AT CH INS 64 of 2022 is dismissed. No costs.