Case Note & Summary
The case involves an appeal filed by the Chief Manager of Canara Bank, the sole Financial Creditor of M/s S.V.K. Shipping Services Pvt. Ltd. (Corporate Debtor), against an order of the National Company Law Tribunal (NCLT) that directed the payment of professional fees to the Interim Resolution Professional (IRP), Respondent No.1. The IRP had filed an application before the NCLT seeking payment of his fees, which was allowed. The Financial Creditor appealed, arguing that the IRP was not entitled to the fee as claimed. The NCLAT noted that the IRP had functioned as an IRP and the Committee of Creditors (CoC) had approved the resolution plan, which included the IRP's fee. The court held that the IRP is entitled to receive his professional fee as per the resolution passed by the CoC, and the Financial Creditor cannot challenge the same after the CoC's approval. The appeal was dismissed, and the NCLT's order was upheld. The court also closed the pending interlocutory application for urgent listing as the appeal was heard on merits.
Headnote
A) Insolvency and Bankruptcy Code - Resolution Professional's Fee - Section 23, IBC, 2016 - The IRP is entitled to receive professional fee as approved by the CoC. The Financial Creditor cannot object to the payment of such fee after the CoC has approved the resolution plan. The appeal by the Financial Creditor challenging the fee is dismissed. (Paras 2-5) B) Insolvency and Bankruptcy Code - Committee of Creditors - Binding Nature of Decisions - Section 21, IBC, 2016 - The decision of the CoC regarding the fee of the IRP is binding on all creditors, including the Financial Creditor. The Financial Creditor cannot unilaterally challenge the fee after participating in the CoC meetings. (Paras 3-5)
Issue of Consideration
Whether the Financial Creditor can challenge the payment of professional fee to the Interim Resolution Professional (IRP) after the Committee of Creditors (CoC) has approved the resolution plan and the fee.
Final Decision
The appeal is dismissed. The NCLT order directing payment of professional fee to the IRP is upheld. IA No.580/2025 is closed.
Law Points
- Insolvency Resolution Professional's fee approved by Committee of Creditors is binding on the corporate debtor
- Financial Creditor cannot challenge the fee after approval
- Section 23 of IBC
- 2016
