# In the matter of Indu Projects Limited IA No. 1105-2019 in CP (IB) No. 372-7-HDB-2018

> NCLT judgment dated 2022-03-22. Citation: TCN-2022-NCLT-03620. The case involves an Interlocutory Application (IA No. 1105/2019) filed by Mr. Gopikrishna…

- **Court:** NCLT
- **Order date:** 22 Mar 2022
- **Citation:** TCN-2022-NCLT-03620
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indu-projects-limited-ia-no-1105-2019-in-cp-ib-no-372-7-hdb-2018-9c30f950

## Summary

### Background

The case involves an Interlocutory Application (IA No. 1105/2019) filed by Mr. Gopikrishna Byadigera, the Interim Resolution Professional (IRP) of M/s Indu Projects Limited, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016. The IRP sought directions for the respondents to make payments of Rs. 9,56,630/- towards his fee and expenses incurred till date, and Rs. 20,000/- towards the appointment of a qualified Chartered Accountant. The IRP was appointed on 05.03.2019 and served until 19.06.2019, when a new Resolution Professional (RP) was appointed. The Committee of Creditors (CoC) had initially approved an IRP fee of Rs. 4,00,000/- per month, but later denied the full payment, leading to

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## Facts

Mr. Gopikrishna Byadigera was appointed as the Interim Resolution Professional (IRP) for M/s Indu Projects Limited on 05.03.2019 by the Adjudicating Authority based on IBBI's confirmation. The IRP served until 19.06.2019, when a new Resolution Professional (RP) was appointed. During his tenure, the IRP constituted the Committee of Creditors (CoC), which included several banks and financial institutions. The first CoC meeting, held on 18.04.2019, approved an IRP fee of Rs. 4,00,000/- per month. However, the CoC later decided to replace the IRP and unilaterally reduced the IRP's fee to Rs. 1,00,000/- as a full and final settlement. The IRP filed an application seeking payment of the outstanding fee of Rs. 9,56,630/- and Rs. 20,000/- for a Chartered Accountant. The

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## Issues and analysis

### Issue 1: Whether the CoC's unilateral reduction of the IRP's approved fee is legally valid under the …

**Ratio:** Regulation 33 of the IBBI (CIRP) Regulations, 2016 stipulates that the costs of the

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**Reasoning:** The court reasoned that any unilateral change by the CoC affecting the rights of the IRP

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**Interpretation:** The interpretation of Regulation 33 suggests that the CoC cannot unilaterally

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**Application:** In this case, the CoC's decision to reduce the IRP's fee from Rs. 4,00,000/-

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## Parties

- **Judges:** Bhaskara Pantula…; BINOD KUMAR…
- **Appellants:** Gopikrishna…
- **Respondents:** Indu Projec…; Bank of…

## Timeline

- **2019-03-05 — Appointment…**: Mr. Gopikrishna Byadigera was appointed as the Interim Resolution Professional (IRP) for…
- **2019-04-18 — First CoC M…**: The first meeting of the Committee of Creditors (CoC) was held, where an IRP fee of Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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