# In the matter of DSTR Infrastructure & Projects LLP Vs. Dharm Vir Gupta CA(AT)(Ins)No. 962 of 2020

> NCLAT judgment dated 2020-11-09. Citation: TCN-2020-NCLAT-00054. The appeal concerns an order passed in September 2020 by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 9 Nov 2020
- **Citation:** TCN-2020-NCLAT-00054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dstr-infrastructure-projects-llp-vs-dharm-vir-gupta-ca-18e366d6

## Summary

### Background

The appeal concerns an order passed in September 2020 by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Court-IV, which reduced the claim of the Resolution Professional during the Corporate Insolvency Resolution Process of ‘DSTR Infrastructure & Projects LLP’ (‘Corporate Debtor’). The Resolution Professional's claim was reduced from Rs.3,80,000 to Rs.2,50,000, considering the Resolution Professional's duties were discharged for a period slightly below two months. The Adjudicating Authority allowed a claim of Rs.4,27,143, which was challenged as exorbitant, considering the Operational Creditor's claim was settled at Rs.12.5 Lakh, including the Interim Resolution Professional's fee.

## Facts

The Resolution Professional filed a claim for dues during the Corporate Insolvency Resolution Process of ‘DSTR Infrastructure & Projects LLP’ (‘Corporate Debtor’). The Adjudicating Authority reduced the claim from Rs.3,80,000 to Rs.2,50,000, noting the Resolution Professional's duties were discharged for a period slightly below two months. The Adjudicating Authority allowed a total claim of Rs.4,27,143, which was challenged as exorbitant. The Operational Creditor's claim was settled at Rs.12.5 Lakh, including the Interim Resolution Professional's fee. The constitution of the Committee of Creditors was stayed. The appellate tribunal found the expenses incurred disproportionate and the amount allowed unjustified.

## Issues and analysis

### Issue 1: Whether the claim for fees and expenses by the Resolution Professional is justified given the …

**Ratio:** The principle is that the fees and expenses claimed by a Resolution Professional must be

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**Reasoning:** The court reasoned that the initial amount allowed was unjustified because the expenses

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**Interpretation:** This issue involves interpreting the reasonableness of fees and expenses

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**Application:** The ratio and reasoning were applied to the specific facts by reducing the

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +2 more
- **Respondents:** DSTR Infrastructur…; Dharm Vir…

## Timeline

- **2020-09-01 — Impugned…**: The Adjudicating Authority passed an order reducing the claim of the Resolution…
- **2020-11-09 — Order Da…**: The appellate tribunal disposed of the appeal with a further reduction in the amount…

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