# In the matter of Gammon India Ltd CP No. (IB) 1677 (MB)-2017

> NCLT judgment dated 2018-04-04. Citation: TCN-2018-NCLT-01600. The case involves a petition filed under Section 9 of the IB Code, 2016, by Hassan Brothers…

- **Court:** NCLT
- **Order date:** 4 Apr 2018
- **Citation:** TCN-2018-NCLT-01600
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gammon-india-ltd-cp-no-ib-1677-mb-2017-5c7683c8

## Summary

### Background

The case involves a petition filed under Section 9 of the IB Code, 2016, by Hassan Brothers against Gammon India Ltd, with a claim principal amount of ₹242,74,128 and interest of ₹265,56,142. The petitioner, Hassan Brothers, also submitted a term sheet outlining the remuneration for the Interim Resolution Professional (IRP).

## Facts

Hassan Brothers filed a petition against Gammon India Ltd under Section 9 of the IB Code, 2016, claiming ₹242,74,128 as principal and ₹265,56,142 as interest. The petition included a term sheet detailing the remuneration for the Interim Resolution Professional (IRP). The proposed remuneration included ₹50,000 for consent in Form 2, ₹15,00,000 payable by the Operational Creditor at the time of admission, and ₹5,00,00,000 for professional fees until the first Committee of Creditors (COC) meeting. The court found the proposed remuneration of ₹5,00,00,000 to be exorbitant. The IRP who consented to the assignment is the wife of the Chartered Accountant who filed the petition, raising a potential conflict of interest. A representative of the Corporate Debtor stated that

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## Issues and analysis

### Issue 1: Whether the proposed remuneration for the Interim Resolution Professional (IRP) is exorbitant and …

**Ratio:** The principle is that IRP remuneration should be reasonable and commensurate with the

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**Reasoning:** The court found the proposed remuneration of ₹5,00,00,000 for the IRP until the first COC

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**Interpretation:** The interpretation is that the court has the authority to scrutinize the

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**Application:** The court applied this principle by directing the Registry to send the petition

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## Parties

- **Judges:** B.S.V. Prakash…; RavikumarDu…
- **Appellants:** HASSAN BR…
- **Respondents:** Gammon Indi…

## Timeline

- **2018-04-04 — Hearing…**: Hearing of the Mumbai Bench of the…
- **2017-01-01 — Case Fil…**: CP (IB)-1677(MB)/2017 filed by Hassan…

## 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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