# In the matter of Shrenuj & Co. Ltd. IA No. 2328 of 2021 in CP (IB) 190-MB-2018

> NCLT judgment dated 2023-01-24. Citation: TCN-2023-NCLT-04929. The application was filed by the erstwhile Resolution Professional (RP) of the Corporate…

- **Court:** NCLT
- **Order date:** 24 Jan 2023
- **Citation:** TCN-2023-NCLT-04929
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shrenuj-co-ltd-ia-no-2328-of-2021-in-cp-ib-190-mb-2018-d355c69e

## Summary

### Background

The application was filed by the erstwhile Resolution Professional (RP) of the Corporate Debtor, seeking payment of CIRP fees and reimbursement of CIRP costs. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2019-03-12, and the applicant was appointed as Interim Resolution Professional (IRP) and later as RP on 2019-05-04. The fees and CIRP expenses were approved by the CoC through e-voting. However, the respondent did not pay the raised payment vouchers. The applicant filed for liquidation on 2019-12-09, which was approved on 2021-07-12. The respondent argued that after filing the liquidation application, the applicants are not entitled to any fees.

## Facts

The applicant, Mr. Hiten Parikh, was the Resolution Professional (RP) for the Corporate Debtor, Shrenuj & Co. Ltd. The CIRP was initiated on 2019-03-12, and the applicant was appointed as IRP and later as RP. The CoC approved the fees and expenses. The applicant filed for liquidation on 2019-12-09, which was approved on 2021-07-12. The respondent, State Bank of India, did not make payments against the raised vouchers. The applicant claimed unpaid CIRP fees of Rs. 95,58,000 and CIRP costs of Rs. 52,22,036. The respondent argued that the applicant is not entitled to fees after filing the liquidation application. The CoC had also filed an I.A. No. 154 of 2020 seeking replacement of the liquidator due to the misconduct and wrongdoing of the Applicants.

## Issues and analysis

### Issue 1: Whether the Applicants are entitled to the fees after the CoC passing a resolution to file for …

**Ratio:** Section 23 of the Insolvency and Bankruptcy Code states that the Resolution Professional

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**Reasoning:** The court reasoned that the Applicants managed and discharged their duties in the

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**Interpretation:** The interpretation of Section 23(1) of the Code is that the resolution

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**Application:** The court applied the ratio and reasoning to the facts of the case, noting that

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Hiten P…
- **Respondents:** Shrenuj & C…; State Bank of…

## Timeline

- **2019-03-12 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2019-05-04 — RP Appoin…**: Applicant was appointed as Interim Resolution…

## 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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