Case Note & Summary
The appeal arose from the insolvency proceedings of Kavveri Telecom Infrastructure Limited, initiated by the NCLT on 21 March 2019. The first respondent appointed the appellant as a registered valuer for the company's assets on 16 September 2019, with fees ratified by the Committee of Creditors. Following a subsequent order from the NCLAT on 18 December 2019, which set aside the CIRP, the appellant's appointment was cancelled, and he was only partially compensated. The appellant filed an application under Section 60(5) of the IBC, which the NCLT dismissed, stating it was functus officio. The NCLAT upheld this dismissal, leading the appellant to appeal to the Supreme Court. The core issue was whether the NCLT could determine the fees of the registered valuer after the CIRP was set aside. The Supreme Court found that the NCLT indeed had jurisdiction under Section 60(5)(c) of the IBC to adjudicate on the claim for professional fees, emphasizing the need for a mechanism to resolve such claims within the insolvency framework. The court set aside the NCLAT's order and remitted the matter back to the NCLT for a fresh determination of the appellant's claim, thereby affirming the NCLT's role in adjudicating disputes related to insolvency resolution costs.
Headnote
A) Insolvency Law - Jurisdiction of NCLT - Determination of Fees - Insolvency and Bankruptcy Code, 2016, Section 60(5)(c) - The court held that the NCLT has the jurisdiction to determine the fees payable to a registered valuer appointed during the CIRP, even after the CIRP was set aside, as this falls within the ambit of insolvency resolution costs. The court directed the NCLT to reassess the claim of the appellant for professional charges (Paras 21-21).
Issue of Consideration
Whether the NCLT has jurisdiction to determine the fees payable to a registered valuer after the CIRP was set aside.
Final Decision
The Supreme Court allowed the appeal, set aside the NCLAT's order, and remitted the matter back to the NCLT for a fresh determination of the appellant's claim for professional fees.
Law Points
- Insolvency resolution process costs
- registered valuer fees
- jurisdiction of NCLT
- IBC provisions
- professional charges determination
