The Chennai Bench of the National Company Law Appellate Tribunal ( NCLAT ) directed Canara Bank to pay Rs.6.49 lakh to the appellant, the Interim Resolution Professional ( IRP ) under Section 7 of the Insolvency and Bankruptcy Code ( IBC ), 2016, for 53 additional days of service beyond his initial 30-day term during the Corporate Insolvency Resolution Process ( CIRP ) of Noble Ispat and Energies Limited.
Rajendra Prasad Tak, the appellant-corporate debtor, served as the IRP in the Corporate Insolvency Resolution Process ( CIRP ) of Noble Ispat and Energies Limited. He was appointed by the National Company Law Tribunal ( NCLT ) on 26 August 2019, following an application under Section 7 of theIBC, filed by the Indian Renewable Energy Development Agency Limited ( IREDA ).
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The terms of his appointment, as per IREDA’s letter dated 15 November 2018, included a fee of Rs.4,00,000 for 30 days, with the fee continuing at the same rate until his replacement.
The appellant assumed charge on 5 September 2019 and performed his duties, including public announcements, claim verification, and forming the Committee of Creditors ( CoC ). The CoC, which included Canara Bank (83.15% voting share) and IREDA (16.85%), resolved in its second meeting on 18 October 2019 to replace the appellant with a new Resolution Professional ( RP ).
Subsequently, Canara Bank filed an application for the new RP’s appointment, which NCLT approved on 27 November 2019. The appellant handed over records to the new RP on 6 December 2019.
The appellant later sought payment for his services as IRP for the entire period from 5 September to 27 November 2019, amounting to Rs.14,29,126. NCLT, in its order dated 2 December 2020, directed Canara Bank to pay Rs.4,00,000 for the first 30 days of his tenure.
Dissatisfied, the appellant filed another application seeking clarification on whether he was entitled to Rs.4,00,000 for each subsequent 30-day period. This clarification was dismissed by NCLT on 25 February 2022.
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In appeals before the appellate tribunal, the appellant argued he was entitled to Rs.6,49,290 for the additional 53 days he served as IRP beyond the initial 30-day period. Canara Bank contested, stating it never agreed to the payment and cited the CoC’s rejection of the claim.
The two member bench comprising Justice Sharad Kumar Sharna ( Judicial Member ) and Jatindranath Swain ( Technical Member ) ruled in favor of the appellant, acknowledging his services and directing Canara Bank to pay the additional Rs.6,49,290 within 30 days.
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