As per the provisions of the IBC, the expenses incurred by the IRP and RP for the purpose of CIRP is bound to be reimbursed and included in the CIRP costs – B Vijay Kumar Vs. M/s. Pragati Bio Care Pvt. Ltd. – NCLT Hyderabad Bench
In this case, the Applicants have functioned as IRP and RP for the period from 27.02.2020 till 30.07.2020 and 08.09.2020 to till 07.10.2021 respectively. The Applicants have also produced expenses incurred by them. However, the COC has not reimbursed the expenditure incurred and had not paid any fee. The Adjudicating Authority held that as per the provisions of the Code, the expenses incurred by the IRP and RP for the purpose of CIRP is bound to be reimbursed and included in the CIRP costs. So also the fee payable to the IRP and RP. As the amount of expenditure claimed as incurred by the Applicants remain unrebutted, we allow the same to be paid to the Applicants. The fees of IRP and RP and expenditure during CIRP shall be borne by the CoC members proportionately. The fee and expenditure as fixed shall be paid to the Applicants within 30 days from the date of this order.