IBBI disposes off SCN issued to an IP as efforts were made to maximize value and fee was reasonably charged
- Blog|News|Insolvency and Bankruptcy Code|
- < 1 minute
- By Taxmann
- |
- Last Updated on 16 November, 2021
Latest from Taxmann
Case Details: Ms. Charu Sandeep Desai, In re [2021] 132 taxmann.com 49 (IBBI)
Judiciary and Counsel Details
-
- Dr. Mukulita Vijayawargiya, Whole Time Member, IBBI
Facts of the Case
An Insolvency Professional (IP) is obliged under section 208(2)(a) and (e) to take reasonable care and diligence while performing her duties, including incurring expenses and to perform duties in a manner specified by IBBI,
In addition, she must, therefore, ensure that not only fee paid to professionals is reasonable, but also other expenses incurred by her are reasonable so that corporate debtor, who is already entangled in a web of unsustainable liabilities is not further over-burdened with exorbitantly high Insolvency Resolution Process Cost (IRPC).
IBBI Held
Therefore, where IP appointed as Resolution Professional (RP) for Corporate Insolvency Resolution Process (CIRP) in a matter of ‘M’ had performed activities to maximize the value of corporate debtor and fees charged and expenses incurred were found to be reasonable and there appeared to be no contravention of provisions of Code or Regulations made thereunder, show cause notice issued to IP was to be disposed of with a warning to IP to take reasonable care and be extremely careful and diligent while performing her duties under Code.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
