IBBI issues Circular on Fees payable to an Insolvency Professional and to other professionals appointed by an Insolvency Professional [Read Circular]

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The Insolvency and Bankruptcy Board of India (IBBI) said that yesterday issued circular clarifying norms for fees payable to an insolvency professional and to other professionals appointed by an insolvency professional.

As per the Code of Conduct for Insolvency Professionals under the IBBI (Insolvency Professionals) Regulations, 2016, an insolvency professional must provide services for remuneration which is charged in a transparent manner and is a reasonable reflection of the work necessarily and properly undertaken. He shall not accept any fees or charges other than those which are disclosed to and approved by the persons fixing his remuneration.

In this regard, the Board clarified that “an insolvency professional shall render services for a fee which is a reasonable reflection of his work, raise bills/invoices in his name towards such fees, and such fees shall be paid to his bank account. Any payment of fees for the services of an insolvency professional to any person other than the insolvency professional shall not form part of the insolvency resolution process cost.”

“Similarly, any other professional appointed by an insolvency professional shall raise bills/invoices in his / its (such as registered valuer) name towards such fees, and such fees shall be paid to his / its bank account,” the circular said.

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