# In the matter of Mr. Devarajan Raman, Resolution Professional
Poonam Drum & Containers Pvt. Ltd.  Vs. Bank of India Ltd. CA (AT) (Insolvency) No. 646 of 2020

> NCLAT judgment dated 2020-07-30. Citation: TCN-2020-NCLAT-00186. The case involves an appeal regarding the fee of the Resolution Professional in a Corporate…

- **Court:** NCLAT
- **Order date:** 30 Jul 2020
- **Citation:** TCN-2020-NCLAT-00186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-devarajan-raman-resolution-professional-poonam-drum-containers-pvt-ltd-vs-ban-13d108ec

## Summary

### Background

The case involves an appeal regarding the fee of the Resolution Professional in a Corporate Insolvency Resolution Process (CIRP). The Appellate Tribunal had previously directed the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) to determine the fee and costs incurred by the Resolution Professional, to be borne by the Bank of India Ltd. The Adjudicating Authority allowed the expenditure incurred by the Resolution Professional and directed payment of a consolidated amount of Rs. 5 Lakhs + GST towards the fee.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated. The Adjudicating Authority was directed to decide the fee of the Resolution Professional (RP) and the cost of the CIRP. The Adjudicating Authority allowed all the expenditure incurred by the RP and directed payment of Rs. 5 Lakhs + GST towards the RP's fee. The Appellant (Mr. Devarajan Raman, Resolution Professional Poonam Drum & Containers Pvt. Ltd.) argued that the fee was inadequate and should be determined by the Committee of Creditors (CoC). The RP worked for about three months. The expenses were allowed in full. The Tribunal found the consolidated amount of Rs. 5 Lakhs + GST as the fee for the entire period not unreasonable.

## Issues and analysis

### Issue 1: Whether the fee determined by the Adjudicating Authority for the Resolution Professional is …

**Ratio:** The fixation of the fee is not a business decision depending upon the commercial wisdom

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**Reasoning:** The Tribunal reasoned that the expenses had been allowed in full, and a consolidated

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**Interpretation:** The interpretation is that the Adjudicating Authority has the power to

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**Application:** The Tribunal applied this principle to the facts of the case, finding that the

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +2 more
- **Appellants:** Devarajan Raman,…
- **Respondents:** Poonam Drum &…; Bank of Ind…

## Timeline

- **2020-07-30 — Order…**: The Appellate Tribunal disposed of Company Appeal (AT) (Insolvency) No. 1092 of 2019,…
- **2020-02-07 — Impugned…**: The Adjudicating Authority allowed all the expenditure incurred by the Resolution…

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