# 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-04923. The application was filed by the erstwhile Resolution Professional (RP) of the Corporate…

- **Court:** NCLT
- **Order date:** 24 Jan 2023
- **Citation:** TCN-2023-NCLT-04923
- **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-ede15095

## 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 make the payments. The applicant filed an application for liquidation on 2019-12-09, which was allowed on 2021-07-12. The respondent argued that after filing the liquidation application, the applicants are not entitled to any fees.

## Facts

The Applicants, being the erstwhile Resolution Professional (RP) of the Corporate Debtor, filed an application seeking payment of CIRP fees amounting to Rs. 95,58,000 and reimbursement of CIRP costs amounting to Rs. 52,22,036. The CIRP was initiated on 2019-03-12, and the Applicant was appointed as IRP and later as RP. The fees and expenses were approved by the CoC through e-voting conducted between 2019-05-02 and 2019-05-04. The Respondent, State Bank of India, did not make the payments. The Applicant filed a liquidation application on 2019-12-09, which was allowed on 2021-07-12. The Respondent argued that the Applicants are not entitled to any fees after filing the liquidation application. The Applicants managed the affairs of the Corporate Debtor until the order of

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## 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 observed that the fees of the Applicants were approved in the 1st meeting of

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**Interpretation:** Section 23(1) of the Code states that subject to section 27, the resolution

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**Application:** The court applied the ratio to the facts of the case, stating that the

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## Parties

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

## Timeline

- **2019-03-12 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2019-05-04 — RP Appoin…**: The Applicant was appointed as the Interim Resolution Process (IRP) and was later…

## 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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