# In the matter of Falcon Tyres Ltd C.P. (IB) No.01-BB-2017

> NCLT judgment dated 2018-12-10. Citation: TCN-2018-NCLT-00141. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 10 Dec 2018
- **Citation:** TCN-2018-NCLT-00141
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/falcon-tyres-ltd-cp-ib-no01-bb-2017-aab56d93

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the I&B Rules, 2016, by Belthangady Taluk Rubber Grower's Marketing & Processing Co-operative Society Limited against Falcon Tyres Ltd. The Interim Resolution Professional (IRP) was initially appointed and later replaced. The IRP's fees became a point of contention, with the NCLAT setting aside the Tribunal's order regarding the appointment of the RP. The Committee of Creditors (CoC) also played a role in appointing the RP. The IRP sought directions from the Tribunal to the Corporate Debtor to pay a sum of Rs. 1,38,72,101/-. The Hon'ble High Court stayed the order of the Tribunal regarding the appointment of the IRP. The applicant was

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## Facts

Belthangady Taluk Rubber Grower's Marketing & Processing Co-operative Society Limited filed a petition against Falcon Tyres Ltd under Section 9 of the IBC, 2016. An Interim Resolution Professional (IRP) was initially appointed, and fees were fixed at Rs. 18,00,000/- for the period 28.04.2017 to 11.05.2017. The High Court stayed the Tribunal's order appointing the IRP. The Tribunal later appointed the applicant as Interim Resolution Professional under Section 13 of the IBC. The Committee of Creditors (CoC) passed a resolution appointing the applicant as Resolution Professional. The IRP sought payment of Rs. 1,38,72,101/- for fees and expenses. The NCLAT set aside the Tribunal's order dated 30.08.2017. The IRP issued invoices for Rs. 85,20,061/- for the period 25th

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## Issues and analysis

### Issue 1: Whether the fees claimed by the Interim Resolution Professional (IRP) and Resolution Professional …

**Ratio:** The determination of fees for IRP/RP is based on the facts and circumstances of each

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**Reasoning:** The Tribunal considered the pleadings of both parties and the extant provisions of the

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**Interpretation:** The interpretation involves understanding the scope and applicability of the

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**Application:** Given that the RP's appointment was set aside by the Appellate Tribunal, the

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Belthangady Taluk…
- **Respondents:** Falcon Tyre…

## Timeline

- **2017-04-28 — Initial Appointment of…**: The Applicant was initially appointed as…
- **2017-05-11 — Stay Order by H…**: The Order dated 28.04.2017 passed by this Hon'ble Authority was stayed by the Hon'ble…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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