# In the matter of Herodex Power Systems Private Limited

> NCLT judgment dated 2024-03-27. Citation: TCN-2024-NCLT-01935. The case involves an application filed by Mr. Hazari Lal Saini, the Interim Resolution…

- **Court:** NCLT
- **Order date:** 27 Mar 2024
- **Citation:** TCN-2024-NCLT-01935
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/herodex-power-systems-private-limited-40eb7494

## Summary

### Background

The case involves an application filed by Mr. Hazari Lal Saini, the Interim Resolution Professional (IRP) of Herodex Power Systems Private Limited, under Regulation 33 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The IRP sought directions for the CoC to approve and pay his fees, confirm him as the RP, and ensure that financial creditors are represented by authorized personnel in CoC meetings. The Corporate Debtor was admitted into CIRP on 2019-09-09, and the applicant was appointed as the IRP. The CoC was formed on 2019-11-05, consisting of Canara Bank as the sole member with 100% voting share.

## Facts

Herodex Power Systems Private Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on 2019-09-09. Mr. Hazari Lal Saini was appointed as the Interim Resolution Professional (IRP). A Committee of Creditors (CoC) was formed on 2019-11-05, with Canara Bank as the sole member holding 100% voting share. The IRP requested the ex-management of the Corporate Debtor to handover information and cooperate with the CIRP. The IRP visited the factory premises of the Corporate Debtor to take possession and conduct verification of fixed assets. The IRP conducted five CoC meetings. The CoC initially deferred voting on the IRP's proposed fee of Rs. 2,50,000 per month but later approved Rs. 1,50,000 per month. The CoC subsequently offered the IRP a monthly remuneration

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## Issues and analysis

### Issue 1: Whether the CoC is obligated to pay the fees claimed by the Interim Resolution Professional (IRP) …

**Ratio:** Regulation 33 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution

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**Reasoning:** The Tribunal considered the fact that the IRP had performed various functions as mandated

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**Interpretation:** The IRP is entitled to reasonable compensation for the services rendered during

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**Application:** The Tribunal directed the CoC to pay the IRP Rs. 1,50,000 per month for the

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## Parties

- **Judges:** Charanjeet Singh…; LAKSHMI G…
- **Appellants:** Hazari Lal Saini,…
- **Respondents:** Herodex Power…; Raychem-RPG…

## Timeline

- **2019-09-09 — Admission in…**: Herodex Power Systems Private Limited was admitted into Corporate Insolvency Resolution…
- **2019-09-09 — Appointment…**: Mr. Hazari Lal Saini was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 16(5) — Appointment and tenure of interim resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-16)

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