Whether the Committee of Creditors are liable to bear the expenses incurred by the Insolvency Resolution Professional or not – State Bank of India Vs. SKC Retails Ltd. through IRP & anr. – NCLAT New Delhi
NCLAT held that as per Regulation 33, the applicant means the person who files the application under Section 7 or 9 of the Code who generally proposes the name of the ‘interim resolution professional’. Such applicant negotiates the fee to be charged and paid to the interim resolution professional. As per the provision aforesaid, the Adjudicating Authority is required to fix the expenses where the applicant has not fixed expenses under sub-regulation (1) of Regulation 33. In such case, the applicant, who has filed the application under Section 7 or 9 of the I & B Code, is required to bear the expenses which is to be reimbursed by the committee of creditors to the extent the Committee of Creditors ratifies the same.