NCLAT Upholds CoC’s Authority on IRP Fees, Limits Remuneration to ₹3 Lakh

NCLAT Upholds Limits on IRP Remuneration

The National Company Law Appellate Tribunal (NCLAT) has upheld the authority of the Committee of Creditors (CoC) in determining the remuneration of insolvency resolution professionals (IRPs), specifically limiting the remuneration claim to ₹3 lakh in an international trenching case. This ruling emphasizes that insolvency professionals cannot assert vested claims to remuneration beyond what is stipulated and approved by the CoC.

In arriving at this decision, the NCLAT reiterated that any disputes regarding fees must be resolved strictly within the framework established by the IBC and the regulations promulgated by the Insolvency and Bankruptcy Board of India (IBBI). The Tribunal’s stance fortifies the regulatory structure underpinning insolvency processes.

For legal professionals engaged in insolvency and corporate restructuring, this ruling has significant implications, particularly in clarifying the scope of remuneration approvals and the authority of the CoC. Practitioners should remain vigilant of these regulations to navigate the complexities associated with insolvency procedures effectively.