# In the matter of Charming Apparels Private Limited (IB)-348(ND)/2017

> NCLT judgment dated 2019-02-18. Citation: TCN-2019-NCLT-04819. The case involves a dispute over the cost incurred by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 18 Feb 2019
- **Citation:** TCN-2019-NCLT-04819
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/charming-apparels-private-limited-ib-348nd2017-938594c9

## Summary

### Background

The case involves a dispute over the cost incurred by the Interim Resolution Professional (IRP), including professional fees, which has not been reimbursed by the Committee of Creditors (COC). The IRP filed CA 658/2018 regarding this matter. HDFC Bank, appearing as counsel for one of the claimants in the COC, argues that the amount claimed as Corporate Insolvency Resolution (CIR) costs during the interim period is grossly inflated, including Rs. 20 lakhs as the IRP's professional fees.

## Facts

The Interim Resolution Professional (IRP) filed CA 658/2018 seeking reimbursement of costs, including professional fees, which the Committee of Creditors (COC) has not reimbursed. HDFC Bank, representing a claimant in the COC, argues that the claimed Corporate Insolvency Resolution (CIR) costs during the interim period are inflated, including Rs. 20 lakhs as the IRP's professional fees. There is no consensus on the IRP's fees. The IRP's claim for reimbursement and the COC's disagreement over the amount are central to the case.

## Issues and analysis

### Issue 1: Whether the IRP's claimed costs, including professional fees, are justified and reimbursable by the …

**Ratio:** The principle of reimbursement of reasonable costs and expenses incurred by the IRP in

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**Reasoning:** The court acknowledges the IRP's claim for reimbursement but also notes the COC's

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**Interpretation:** The IRP is entitled to reimbursement for reasonable costs, but the COC has the

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**Application:** The court's direction for the parties to appear before the Board and the

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## Parties

- **Judges:** Ina Mal…
- **Appellants:** M/s. Rachna…
- **Respondents:** Charming Apparels…
- **Advocates:** Atul Sh…; Kamal G…; +2 more

## Timeline

- **2018-01-01 — CA 658/2018…**: CA 658/2018 has been filed by the IRP stating that the cost incurred by him including his…
- **2019-02-18 — Hearing…**: Hearing before the National Company…

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