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IBBI Has Jurisdiction To Regulate Payment Of IRP And RP: NCLAT

In Sumit Bansal, Insolvency Professional vs Committee Of Creditors Of Jp Engineers Pvt. Ltd. & Ors, filed an Application before the Adjudicating Authority claiming the payment of fees @ Rs.2 Lakh per month on which Application the Adjudicating Authority took a decision to refer the matter to the Insolvency and Bankruptcy Board of India (IBBI) to examine the claim of Ex-IRP vis-à-vis his agreement with the CoC and to submit their specific recommendations and thereafter the matter be directed to be listed again before the Adjudicating Authority.

Appellant challenging the order submits that IBBI has no jurisdiction to decide the question of payment of fees of the Appellant. He further submits that the Adjudicating Authority ought not to have asked for recommendation of the IBBI with regard to fee of the Appellant. He submits that the Adjudicating Authority ought to have itself decided the matter regarding fee.

Judgment

The NCLAT disagreeing with the Appellant observed that IBBI till necessary regulations are not framed regulating fee is empowered to issue executive instructions in this regard. The issue of payment of fee to the IRP/RP occur very frequently which needs to be regulated by Regulating Authority who is clothed with the power. 

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