No Liquidator’s fee can be charged from Scheme Proponent, who has submitted Scheme of Compromise and Arrangement under Sec. 230 of Companies Act, 2013 | Liquidator is entitled to his fee under Sec. 34 & Liquidation Regulation 4 and Cost under Regulation 2B – CA Jai Narayan Gupta (Liquidator of Barcle Enterprises Limited) v. Radhasiriya Properties Pvt. Ltd. – NCLAT New Delhi

In this landmark judgment, Hon’ble NCLAT held that: (i) The statutory provision is clear that Liquidator can only claim cost incurred from the parties who proposed the compromise or arrangement. (ii) The Rule making Authority is fully aware of the difference between the cost and fee. Liquidation Regulation 2B, does not include fee. Regulation 4 of Liquidation Regulations, 2016 deals with fee. (iii) Regulation 2B does not indicate that any fee by Liquidator can be charged from the Scheme Proponent. The Liquidator is entitled to his fee as per the statutory provision of Section 34, sub-section (8) and (9) read with Regulation 4 of Liquidation Regulations, 2016. (iv) No fee can be charged from the Scheme Proponent, who has submitted the Scheme under Section 230 of the Companies Act, 2013 read with Regulation 2B of Liquidation Regulations, 2016. (v) Cost incurred with regard to compromise or arrangement has to be borne by the Corporate Debtor or Scheme Proponent.

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