The NCLAT has upheld the authority of the Committee of Creditors by limiting the insolvency professional's remuneration to ₹3 lakh, reinforcing the framework set by the IBC and IBBI regulations.
NCLAT Upholds Authority on IRP Fees, Limits Remuneration
The National Company Law Appellate Tribunal (NCLAT) has limited the remuneration of the insolvency professional in the International Trenching case to ₹3 lakh, thereby upholding the authority of the Committee of Creditors (CoC). This ruling affirms that insolvency professionals do not have vested rights to remuneration beyond what the CoC has approved.
The NCLAT's decision is founded on the regulatory framework of the Insolvency and Bankruptcy Code (IBC) and guidelines established by the Insolvency and Bankruptcy Board of India (IBBI). It signifies a clear message regarding the need to adhere strictly to financial limits approved by the CoC, promoting transparency and accountability in insolvency proceedings.
Furthermore, the tribunal's ruling resolves potential disputes over fees, ensuring that remuneration matters are addressed within the established legal framework without exception. This development is pivotal in streamlining financial governance and ensuring that professionals operate within their authorized remuneration limits.
Legal professionals involved in insolvency cases should closely observe this ruling as it reinforces the importance of the CoC's role in determining the financial entitlements of insolvency professionals. This ruling underscores the necessity of aligning remuneration claims with the IBC and IBBI regulations.
Citations
- NCLAT (2026) NCLAT Order 4
