Case Note & Summary
The appeal was filed by Sunil Kumar Agarwal, the Resolution Professional of Jayantilal Babulal Sanghvi, against an order dated 04.02.2026 from the National Company Law Tribunal, Ahmedabad, which imposed costs on him for alleged non-compliance with submission requirements. The Appellant argued that he had been engaged to manage insolvency proceedings for four personal guarantors and had rendered extensive professional services, but faced non-payment of fees. The Respondent, State Bank of India, contended that it was only a formal party and had no substantive relief sought against it. The Tribunal analyzed the impugned order and found that the Adjudicating Authority had incorrectly concluded that written submissions were required to be supported by an affidavit, which was not mandated. The Tribunal noted that the Appellant had complied with all requirements and that the imposition of costs was not justified as there was no evidence of misconduct. Consequently, the Tribunal set aside the costs imposed and the direction to forward the order to IBBI, concluding that the impugned order was unsustainable.
Headnote
A) Insolvency Law - Professional Fees - Entitlement to Fees - Insolvency and Bankruptcy Code, 2016, Section 61 - The Appellant contended that professional fees were due for services rendered during insolvency proceedings, but the Respondent withheld payments. The Tribunal held that the imposition of costs was arbitrary as there was no finding of misconduct or non-compliance with any specific direction regarding affidavit requirements (Paras 18-25).
Issue of Consideration
Whether the imposition of costs and the direction to forward the order to IBBI were justified.
Final Decision
The Tribunal set aside the impugned order to the extent it imposed costs of Rs. 1,00,000 on the Appellant and expunged adverse observations regarding 'wrong submissions'. The direction to forward the order to IBBI was also set aside.
Law Points
- Insolvency proceedings
- professional fees
- compliance with directions
- judicial discretion
- affidavit requirements
