# In the matter of Nice Projects Limited (IB)-795(ND)2019

> NCLT judgment dated 2019-07-17. Citation: TCN-2019-NCLT-02484. The case involves a corporate insolvency resolution process (CIRP) where the corporate debtor…

- **Court:** NCLT
- **Order date:** 17 Jul 2019
- **Citation:** TCN-2019-NCLT-02484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nice-projects-limited-ib-795nd2019-99daac1b

## Summary

### Background

The case involves a corporate insolvency resolution process (CIRP) where the corporate debtor sought termination of the CIRP. The IRP's fees were a point of contention, with the corporate debtor offering Rs. 50,000 as professional fees and Rs. 25,000 towards expenses, which was not acceptable to the RP. The matter was initially deferred because the Corporate Debtor had to reimburse the IRP.

## Facts

The Corporate Debtor, M/s. Ayam Weldmesh Pvt. Ltd., was undergoing a CIRP. A dispute arose regarding the fees payable to the IRP for a 5-day tenure. The Corporate Debtor offered Rs. 50,000 as professional fees and Rs. 25,000 for expenses, which the RP found unacceptable. The court noted that the Corporate Debtor was initially required to reimburse the IRP, leading to a deferral of the order. The parties were directed to appear before the IBBI to determine a reasonable fee. The CIRP was ultimately terminated, and the Corporate Debtor was allowed to function through its own board, released from the moratorium. The relevance of the fee dispute lies in its potential to delay or obstruct the CIRP, and the court's intervention aimed to resolve this issue efficiently.

## Issues and analysis

### Issue 1: Whether the IRP's fees are reasonable and …

**Ratio:** The principle of reasonableness and fairness in determining the IRP's fees, ensuring that

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**Reasoning:** The court reasoned that the fees offered by the Corporate Debtor were not acceptable to

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**Interpretation:** The interpretation involves balancing the IRP's right to fair compensation with

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**Application:** The ratio is applied by directing the parties to appear before the IBBI, which

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Respondents:** M/s. Ayam…; Vinod Cha…
- **Advocates:** Vinod Cha…; Faisal…; +3 more

## Timeline

- **2019-07-11 — Order Da…**: Court noted parties were entitled to…
- **2019-07-17 — Hearing…**: Hearing before the…

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