# In the matter of Southern Investments Pvt. Ltd. MA-637-2018 In CP-202-IB-2018

> NCLT judgment dated 2019-01-21. Citation: TCN-2019-NCLT-05205. The case involves a dispute over the payment of remuneration to the Resolution Professional…

- **Court:** NCLT
- **Order date:** 21 Jan 2019
- **Citation:** TCN-2019-NCLT-05205
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/southern-investments-pvt-ltd-ma-637-2018-in-cp-202-ib-2018-27c25777

## Summary

### Background

The case involves a dispute over the payment of remuneration to the Resolution Professional (RP). Two members of the Committee of Creditors (CoC) have not paid their share of the remuneration. Muthoot Finance Limited owes Rs. 6,61,200, and Hinduja Leyland Finance Limited owes Rs. 55,500. Hinduja Leyland Finance Limited has not been served notice, but Muthoot Finance Limited has been served, and a counter has been filed. The Supreme Court had previously directed that an application under Section 9 be dismissed, but the RP was given liberty to work out the claims of home buyers and settle them. During the hearing, it was submitted that if any direction is issued to Muthoot Finance Limited for payment to the RP, a direction may be given to the Corporate Debtor for making

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## Facts

Chitra Srinivas is the Resolution Professional (RP). Muthoot Finance Limited and Hinduja Leyland Finance Limited are members of the Committee of Creditors (CoC). Two members of the CoC have not paid their share of remuneration to the RP. Muthoot Finance Limited owes Rs. 6,61,200, and Hinduja Leyland Finance Limited owes Rs. 55,500. Hinduja Leyland Finance Limited has not been served notice. The Supreme Court had previously directed that an application under Section 9 be dismissed, but the RP was given liberty to work out the claims of home buyers. During the hearing, it was submitted that if any direction is issued to Muthoot Finance Limited for payment to the RP, a direction may be given to the Corporate Debtor for making payment to Muthoot Finance Limited. Muthoot

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## Issues and analysis

### Issue 1: Whether Muthoot Finance Limited should be directed to pay the Resolution Professional the …

**Ratio:** The principle is that members of the CoC are responsible for paying the remuneration of

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**Reasoning:** The court considered the submissions of the Counsel for Muthoot Finance Limited and the

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**Interpretation:** This issue involves the interpretation of the Insolvency and Bankruptcy Code

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**Application:** The court applied the principle by directing Muthoot Finance Limited NBFC to

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Chitra Sr…
- **Respondents:** Southern Investmen…
- **Advocates:** S. Sathiyanarayana…

## Timeline

- **2018-11-20 — Supreme Cour…**: The Hon'ble Supreme Court directed that Application under Section '9' be dismissed.…
- **2019-01-21 — Hearing…**: Hearing held at 10.30…

## 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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