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2025 Supreme(Online)(NCLT) 8107
NATIONAL COMPANY LAW TRIBUNAL
Shri. Prabhat Kumar, Hon’ble Member (Technical), Shri Sushil Mahadeorao Kochey, Hon’ble Member (Judicial)
Srigopal Choudhary – Appellant
Versus
Pankaj Majithia – Respondent
Company Petition No. 494 of 2019 | Insolvency and Bankruptcy Code, 2016
For the Applicants: Adv. Kushal Bansal
For the Respondent 1: Adv. Arshil Ajay Shah
For the Respondent 2: M/s. AVP Partners
For the Respondent 3: Wadia Ghandy & Co.
The Tribunal ruled that fees for insolvency professionals must reflect actual work performed and compliance with statutory timelines, limiting claims for inadequate performance.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 60(5) - Fee claims by the erstwhile Resolution Professional for services rendered during the Corporate Insolvency Resolution Process - The Tribunal observed that while the fee structure was approved, the work performed was insufficient to justify claimed amounts, resulting in a reduced remuneration. The applicant highlighted several delays and challenges but ultimately did not meet statutory requirements for efficient CIRP management. (Paras 1, 23, 26)
(B) Duties of Resolution Professional - Claimed fees were not supported by adequate documentation or timely services, leading to a directive for a reduced remuneration based on actual work performed. (Paras 17, 20)
| Table of Content |
|---|
| 1. jurisdiction of nclt over fees of rp despite grievance mechanisms. (Para 1 , 2 , 3) |
| 2. constitution and contestation of cirp processes and associated roles. (Para 4 , 5 , 6) |
| 3. determination of fees based on compliance with cirp regulations. (Para 17 , 20 , 21) |
| 4. final directions regarding payment of fees to the applicant. (Para 23 , 24 , 25 , 26) |
ORDER
1. The Applicant, Mr. Srigopal Choudhary, being the erstwhile Resolution Professional of the Corporate Debtor has filed the present application on 31.03.2023 under Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 (“Code”), read with Rule 11 of the National Company Law Tribunal Rules, 2016 (“Rules”), seeking directions against the Respondents for the release/payment of fees of the Applicant in the Corporate Insolvency Resolution Process (“CIRP”) of Shree Ram Urban Infrastructure Ltd. (“Corporate Debtor”) in the matter of Company Petition No. 494 of 2019, filed under Section 7 of the Code. The Applicant has prayed for following :
a. Direct the Respondent being Resolution Professional to release amounts from Corporate Debtor's bank account of Rs. 1,42,95,000 (Rupees One Crore Forty-Two Lakhs Ninety-Five Thousand only) to the Applicant towards fees and Rs. 83,24,051 (Rupees Eighty-Three Lakhs) to the Applicant towards reimbursement of expenses attributable to him as his role as the interim resolution professional of the Corporate Debtor as approved and ratified in the 2nd Committee of Creditors meeting for the period between 06.11.2019 (Insolvency Commencement Date) to 05.04.2021.
b. Direct the Respondent being Resolution Professional to release amounts from Corporate Debtor's bank account of Rs. 12,12,500 (Rupees Twelve Lakhs Twelve Thousand Five Hundred only) to the Applicant towards fees and Rs. 1,59,500 (Rupees One Lakhs Fifty-Nine Thousand Five Hundred Only) to the Applicant towards reimbursement of expenses attributable to him as his role as the resolution professional of the Corporate Debtor as approved and ratified in the Committee of Creditors meeting for the period between 06.04.2021 to 20.06.2021.
c. Direct the Respondent being Resolution Professional to release amount from Corporate Debtor's bank account of Rs. 1,52,54,354 (Rupees One Crore Fifty-Two Lakhs Fifty Four Thousand Three Hundred and Fifty Four Only) to the Applicant towards fees attributable to him as his role as the resolution professional of the Corporate Debtor as approved in the 2nd Committee of Creditors meeting for the period between 21.06.2021 to 28.11.2022.
d. Direct the Respondent being Resolution Professional to release amounts from Corporate Debtor's bank account of Rs. 11,88,000 (Rupees Eleven Lakhs Eighty-Eight Thousand Only) to the Applicant towards reimbursement of expenses attributable to him during his tenure as the resolution professional of the Corporate Debtor for the period between 21.06.2021 to 28.11.2022.
e. Direct the Respondent being Resolution Professional to release amounts from Corporate Debtor's bank account of Rs. 91,72,230 (Rupees Ninety-One Lakhs Seventy-Two Thousand Two Hundred and Thirty Rupees Only) to the Applicant towards reimbursement of legal expenses attributable to him during his tenure as the resolution professional of the Corporate Debtor for the period between 21.06.2021 to 28.112022.
f. Pass such other/further orders as this Hon'ble Tribunal may deem fit and proper in the interest of justice.
Background of the case
2. The CIRP of the Corporate Debtor commenced on 6.11.2019 vide order of even date passed by this Tribunal allowing a Section 7 application filed by SREI Equipment Finance Ltd. (“SREI”). The Applicant was appointed as the Interim Resolution Professional and was subsequently confirmed as the Resolution Professional by the Committee of Creditors and confirmed by this Tribunal vide order dated 06.01.2022. The Applicant was removed as RP by this Tribunal vide Order dated 28.11.2022, appointing Mr. Sapan Mohan Garg as RP. Later on, this T
