No Direction Pertaining To Fees & Expenses Of Resolution Professional Can Be Passed Prior To Adjudication Of S.99 Report: NCLT Delhi

The National Company Law Tribunal Delhi allowed applications filed by the Central Bank of India seeking replacement of Resolution Professional for failure of submission of report as per section 99 of the Insolvency & Bankruptcy Code, 2016 and demanding fees before adjudication of the report. The bench of Shri Manni Sankariah Shanmuga Sundaram and Shri Atul Chaturvedi held that “any directions pertaining to the fees and expenses of the resolution professional, prior to adjudication of the section 99 report, would be premature and contrary to the scheme envisaged under the code”. Four applications were filed by Central Bank of India seeking replacement of the resolution professional. The bank contended that the resolution professional without submitting the report raised an exorbitant invoice on the bank as resolution fees due and payable to him. In response, the resolution professional contended that the bank did not provide him with the requisite documents. He even requested for clear copy of the application, however, the same was not provided to him. He further contended that due to non-cooperation of the bank he had to visit locations of the guarantor and had sent various letters to both the guarantors and the bank after which he raised a reasonable demand of Rs. 2,00,000/- per case in entirety and 50% to be paid advance. The tribunal observed that the main application for initiation of insolvency proceedings under section 95 of the code was filed by the Central Bank of India and Mr. Sudhir Kumar Agarwal was appointed as RP. Thereafter, the tribunal directed the RP to submit the report as per section 99 of the code within 10 days from the date of his appointment. However, the RP did not submit the report within the statutory period. The tribunal remarked that the RP failed to discharge his duties as he did not file the report under section 99 within time and raised an exorbitant invoice before the adjudication of the report. Thus, the tribunal allowed the applications for replacement of RP filed by the Central Bank of India. Case Title: Central Bank of India v/s Mrs. Ritu Garg, Anurag Garg, Mrs. Manju Lata Garg, Akresh Garg, Mr. Sudhir Kumar Agarwal Case Number: I.A. No. 4923/ND/2024 IN C.P. (IB) No. 96/ND/2024, I.A. No. 4919/ND/2024 IN C.P. (IB) No. 89/ND/2024, I.A. No. 4918/ND/2024 IN C.P. (IB) No. 98/ND/2024, I.A. No. 4920/ND/2024 IN C.P. (IB) No. 94/ND/2024 Judgment Date: 11/08/2025 For the Applicant: Mr. Brijesh Kumar Tamber and Mr. Prateek Kushwaha, Advocates For the RP : Adv. Rachit Ranjan Click Here To Read/Download The Order

No Direction Pertaining To Fees & Expenses Of Resolution Professional Can Be Passed Prior To Adjudication Of S.99 Report: NCLT Delhi

Mehak Aggarwal

This is a premium content
Available exclusively to
Our subscribers

INR 1099+GST

Tags

Mehak Aggarwal

No Direction Pertaining To Fees & Expenses Of Resolution Professional Can Be Passed Prior To Adjudication Of S.99 Report: NCLT Delhi

Mehak Aggarwal

This is a premium content Available exclusively to Our subscribers

INR 1099+GST

Tags

Mehak Aggarwal

This is a premium content
Available exclusively to
Our subscribers