IRP can’t claim any cost or fee in addition to fee already paid when NCLAT had stayed the entire CIRP
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- Last Updated on 6 May, 2022
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Case Details: Mritunjay Kumar Member of the Suspended Board of Director Unibera Developers (P.) Ltd. v. Propertree Real Estate Solutions (P.) Ltd. - [2022] 137 taxmann.com 356 (NCL-AT)
Judiciary and Counsel Details
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- Justice Ashok Bhushan, Chairperson
- Dr. Ashok Kumar Mishra and Dr. Alok Srivastava, Technical Member
- Abhishek Anand and Kunal Godhwani, Advs. for the Appellant.
- Gautam Singhal, Gaurav Mittra, Amar Vivek, Shalya Agarwal, Aditya Gauri, Arvind Shukla and Saket Shubham, Advs. for the Respondent.
- Dhananjaya Sud, Adv. for the Petitioner.
- CS Gupta, Adv. for the Respondent.
- Gautam Singhal, Shubham Saket, Abhishek Anand, Arvind Shukla, Aditya Gauri and Dhananjaya Sud, Advs. for the Appearing Parties.
Facts of the Case
In the instant case, questions that arose before the Appellate Tribunal were as follows
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- Whether Interim Resolution Profession was entitled to claim any fees where the Appellate Tribunal had stayed the entire CIRP?
- Whether the approval of Committee of Creditors was required when the application for withdrawal of CIRP was filed before the constitution of CoC?
NCLAT Held
The NCLAT held that where Appellate Tribunal had stayed the entire CIRP, there was no question of incurring any cost or claiming any fee by IRP after the said order and the fees already paid to IRP would be sufficient towards payment of fee.
With regard to the question of withdrawal of CIRP, the NCLAT held that where the application for withdrawal of CIRP was filed before the constitution of Committee of Creditors, there was no requirement to take prior approval of CoC for withdrawal of CIRP application as required u/s 12A of IBC.
Case Review
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- Propertree Real Estate Solutions (P.) Ltd. v. Unibera Developers (P.) Ltd. [2022] 137 taxmann.com 355 (NCLT – New Delhi) (para 9) reversed [See Annex A].
- Propertree Real Estate Solution (P.) Ltd. v. Unibera Developers (P.) Ltd. [2022] 137 taxmann.com 354 (NCLT – New Delhi) (SB) (para 8) reversed [See Annex B].
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