Dharm Vir Gupta And Anr vs DSTR Infrastructure And Projects Llp

Sumita Purkayastha, Member (T)

This is an order being passed in IA. 2904/ND/2020. The application has been filed by the Resolution Professional seeking the following prayers:-

i. Take on record the particulars of the CIRP cost incurred including fee and direct the Corporate Debtor to pay the same in accordance with the order dated 03.03.2020 passed by the Hon`ble NCLAT in Company Appeal (at) (Insol.) 96/2020;

ii. Pass such other further order or orders as this Hon`ble Adjudicating Authority may deem fit and proper in the facts and circumstances of the case.

Before delving into the issue of this application it is pertinent to allude briefly the facts and background of the case. The Operational Creditor Eco Drilling Fluids Private Limited had filed an application under Section 9 of the I&B Code and an order of admission of the said application appointing Mr. Dharm Vir Gupta as the IRP was passed on 06.01.2020. The Corporate Debtor challenged the said order of NCLT dated 06.01.2020 and vide judgement dated 03.03.2020, the Hon`ble NCLAT set aside the order of admission and discharged the IRP. Factually admitted, the CIRP process lasted from 06.01.2020 to 03.03.2020 i.e the total period of CIRP was approximately for a period of a little less than 2 months.

The Hon`ble NCLAT vide this order dated 03.03.2020 had directed that "IRP/RP to place particulars regarding the CIRP costs and balance fees before the Adjudicating Authority. The Adjudicating authority may consider the same and approve reasonable CIRP costs including fees and direct the Corporate Debtor to pay the same to the IRP in a time to be specified by the learned Adjudicating Authority. In case of default, parties would be at liberty to move this Tribunal for recall of the present order".

The Resolution Professional states that a sum of Rs. 2,00,000/- (2 lakh) has been paid by the Operational Creditor under the order of admission dated 06.01.2020, passed by the Adjudicating Authority and no other sum/fee has been paid. The copy of list detailing the CIRP cost along with the invoices is annexed with the application. We have gone through the details filed by the Resolution Professional with respect to the fee charged, expenses incurred and the fee paid to the advocates/counsel during the litigation.

On perusal of the list of the fee charged, it seems that out of total 27 items, 4 items relate to professional fee of different advocates for appearance before Hon`ble NCLAT. The Resolution professional has charged an amount of Rs. 3,80,000/- as the fee (2 lac per month) for a period of less than two months (one month and 27 days) . The IRP states that a sum total of Rs. 5,57,143/- has incurred as the CIRP cost out of which Rs.2,00,000/- has already been paid.

It is observed that since the Resolution Professional had performed his official duty for a period of a little less than 2 months hence, such exorbitant fee of Rs 2,00,000/- charged per month by the Resolution Professional is incredible as required. In our view the amount to be paid to the Resolution Professional as the fee for the period from 06.01.2020 to 03.03.2020 should be not more than Rs. 2,50,000/- . It is an admitted fact that Rs. 2,00,000/- was paid by the Operational Creditor during and while CIRP was in progress to meet the expenses by the IRP. In our view Rs. 4,27,143/- including the expenses incurred should be sufficient to justify the present case. Hence, we direct the Corporate Debtor to pay the balance amount of Rs 2,27,143/- in view of full and final amount to be paid to the Resolution professional.

Application 2904/ND/2020 is disposed of in terms of the above order.