# In the matter of S3 Electricals and Electronics Private Limited Vs. Brian Lau & Anr. Civil Appeal No. 103-2018

> SC judgment dated 2019-08-05. Citation: TCN-2019-SC-00045. The case involves a dispute regarding the costs of the interim resolution professional (IRP) in an…

- **Court:** SC
- **Order date:** 5 Aug 2019
- **Citation:** TCN-2019-SC-00045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/s3-electricals-and-electronics-private-limited-vs-brian-lau-anr-civil-appeal-no-4392adf4

## Summary

### Background

The case involves a dispute regarding the costs of the interim resolution professional (IRP) in an insolvency resolution process. Regulation 33 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, governs these costs. The applicant is responsible for bearing the expenses incurred by the RP, which are then reimbursed by the Committee of Creditors (CoC) to the extent ratified. However, in this specific case, a CoC was never formed during the interim resolution process.

## Facts

S3 Electricals and Electronics Private Limited filed an appeal regarding the costs of the interim resolution professional (IRP) under the Insolvency and Bankruptcy Code. Regulation 33 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, stipulates that the applicant bears the IRP's expenses, which are then reimbursed by the Committee of Creditors (CoC) if ratified. In this case, no CoC was ever formed. The Adjudicating Authority had fixed expenses, and the question was who should bear these expenses in the absence of a CoC. The impugned judgment dated 02.08.2017 was challenged. Brian Lau & Anr. were the respondents.

## Issues and analysis

### Issue 1: Whether the expenses of the interim resolution professional should be borne by the corporate debtor …

**Ratio:** Regulation 33(3) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution

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**Reasoning:** The court reasoned that since no Committee of Creditors was formed, the mechanism for

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**Interpretation:** The court interpreted Regulation 33(3) to mean that the initial responsibility

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**Application:** The court applied the ratio to the specific facts by setting aside the impugned

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## Parties

- **Judges:** ROHINTON FALI…; SURYA…
- **Appellants:** S3 ELECTRICALS…
- **Respondents:** BRIAN…

## Timeline

- **2017-08-02 — Impugned Judgm…**: Date of the judgment that was…
- **2019-08-05 — Order Da…**: Date of the Supreme…

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