‘Success fees’ which is more in the nature of contingency and speculative is not part of the provisions of the IBC and the Regulations and the same is not chargeable – Mr. Jayesh N. Sanghrajka, Erstwhile R.P. of Ariisto Developers Pvt. Ltd Vs. The Monitoring Agency nominated by the CoC of Ariisto Developers Pvt. Ltd. – NCLAT New Delhi
September 21, 2021
NCLAT observed that the Appellant claiming that he had done excessively well to deserve Rs. 3 Crores of success fees, the Adjudicating Authority had made comments as to what was the scenario when it was supervising the CIRP. The Adjudicating Authority was at the ground level monitoring the progress of CIRP and its observations cannot be simply ignored. Further, it was held that ‘success fees’ which is more in the nature of contingency and speculative is not part of the provisions of the IBC and the Regulations and the same is not chargeable.