# In the matter of Maximaa Systems Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01626. The case involves an application filed by the Erstwhile Interim Resolution Professional (IRP)…

- **Court:** NCLT
- **Order date:** 24 Apr 2024
- **Citation:** TCN-2024-NCLT-01626
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/maximaa-systems-limited-5042bbd1

## Summary

### Background

The case involves an application filed by the Erstwhile Interim Resolution Professional (IRP) of Maximaa Systems Ltd under Rule 11 of the NCLT Rules, 2016, seeking payment of outstanding fees and expenses incurred during the Corporate Insolvency Resolution Process (CIRP). The IRP, Ajit Gyanchand Jain, claimed Rs. 1,85,500/- as outstanding fees with taxes and Rs. 38,798/- towards expenses, totaling Rs. 2,24,298/-. The Committee of Creditors (CoC), with Bank of India as the sole member, had not ratified all expenses. The Corporate Debtor's CIRP was initiated based on an application under Section 10 of the IBC, 2016.

## Facts

Ajit Gyanchand Jain, the Erstwhile IRP of Maximaa Systems Ltd, filed an application seeking payment of outstanding fees and expenses totaling Rs. 2,24,298/- (Rs. 1,85,500/- as outstanding fees with taxes and Rs. 38,798/- towards expenses). The CIRP was initiated based on an application under Section 10 of the IBC, 2016. The Committee of Creditors (CoC) was formed with Bank of India as the sole member. The CoC had already paid Rs. 2,64,400/- for IRP services and Rs. 5,171/- for GST registration. The CoC did not ratify expenses of Rs. 38,798/-. The suspended members of the Board of the Corporate Debtor include Mayur Balubhai Shah, Mahesh Balu Shah, and Manoj Balubhai Shah. The Corporate Debtor had agreed to a fee of Rs. 2,25,000/- for the IRP. The first CoC meeting was

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## Issues and analysis

### Issue 1: Whether the outstanding fees and expenses claimed by the Erstwhile IRP of Maximaa Systems Ltd …

**Ratio:** The principle is that IRP expenses are typically CIRP costs and should be paid. However,

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**Reasoning:** The court considered that the CoC had not fully ratified the expenses and that there were

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**Interpretation:** This highlights the CoC's responsibility in approving and ratifying IRP

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**Application:** Given the CoC's partial ratification and the lack of assets, the court directed

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Ajit Gyanchand…
- **Respondents:** Maximaa Systems…; Mayur Balubhai…
- **Advocates:** Viswas V.…; Vinod Kr.…; +2 more

## Timeline

- **2022-11-28 — Tribunal…**: The Tribunal admitted an application under Section 10 of IBC, 2016, initiating CIRP and…
- **2022-12-27 — First CoC M…**: The first CoC meeting was held where the sole CoC member elected the resolution for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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