The National Company Law Appellate Tribunal (NCLAT), Delhi, ruled that adjudicating authority is empowered to examine the entitlement of fee and expenses.
“Insofar as jurisdiction of the Adjudicating Authority to determine the fees and expenses, we are not agreeable with the submission of the Appellant that the Adjudicating Authority has no jurisdiction to proceed for computation of fee and expenses. When the Appellate Tribunal vide its order dated 11.12.2019 has specifically directed in paragraph 19 that Financial Creditor is liable to pay the CIRP cost and fees which was to be reported to the Adjudicating Authority and which was to be determined, the Adjudicating Authority has ample jurisdiction to proceed to examine the entitlement of the fee and expenses”, the tribunal said.
The tribunal held that the order passed by this Appellate Tribunal is final and binding between the parties and the Financial Creditor cannot escape from liability to pay fee and expenses.
The Adjudicating Authority has determined the fee of Rs. 1,00,000/- per month totalling Rs. 7,30,000/- which the tribunal viewed that need to be paid by the Financial Creditor. CIRP expenses has also been approved for Rs. 2,41,512/- which finds approval of tribunal.
Facts
The Adjudicating Authority took up the Company Petition and taking note of the order of the Appellate Tribunal, the Company Petition was dismissed. The Adjudicating Authority while dismissing the Company Petition observed that Financial Creditors may take note of the order of the Appellate Tribunal and invite the client’s attention to the same and ensure compliance.
Case Information
Case Name : Khozim Yusuf Nagarwala v/s Satyendra Prasad Khorania Erstwhile RP of Raj Buildhome Pvt. Ltd.
Judicial Level & Location : NCLAT, New Delhi
Appeal Number : Company Appeal (AT) (Insolvency) No. 871 of 2023 & I.A. No. 2962 of 2023
Date of Ruling : 2024-07-02
Ruling in favour of: Respondent
Judges: Justice Ashok Bhushan Chairperson, Barun Mitra Member (Technical), Arun Baroka, Member (Technical)
Respondent Advocate: Mr. Amol Vyas, Advocate.
Click here to read the Order / Judgment
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