M/s. Surendra Steel Sales V/s. M/s. Immortal Buildcon Pvt. Ltd. - CIRP rescinded.

 NCLT New Delhi (07.01.2020) in  M/s. Surendra Steel Sales V/s. M/s. Immortal Buildcon Pvt. Ltd. .[(IB) -1152 (ND) 2019].held that;

• This bench is  apprised of the fact that the Operational Creditor has been in talks of settlement  with the Corporate Debtor and, is therefore, not interested in taking any step to  proceed with the CIR process. Under such circumstances with no other claimant  and the sole member of the CoC not being interested in prosecuting the CIR  process, it would be expedient to terminate the CIR process. In view of the above,  the CIR process is hereby terminated.

 

Excerpts of the order;

The controversy is with respect to the professional fees and reimbursement  of expenses to be made to thc IRP. As per the Operational Creditor, the sole  member of the CoC, it is submitted that he had only proposed a consolidated fee.  of Rs. 1 lakh to be paid inclusive of all expenses till the first meeting of the CoC.  Though repudiated by the IRP, even this has not been fully paid. The IRP has  submitted that he has been meeting expenses from his own pocket. Pursuant to  the publication, no other claim was received. It is submitted that the first meeting  has been held while the second meeting has been postponed a few times, at the  instance of the Operational Creditor/CoC on grounds of a possible settlement  with the Corporate Debtor. As such there was no confirmation of the RP or  further steps taken. There was no concession on the fees to be given, muchless  (Ginni)  expenses to be met. No progress has been made in this case. This bench is  apprised of the fact that the Operational Creditor has been in talks of settlement  with the Corporate Debtor and, is therefore, not interested in taking any step to  proceed with the CIR process. Under such circumstances with no other claimant  and the sole member of the CoC not being interested in prosecuting the CIR  process, it would be expedient to terminate the CIR process. In view of the above,  the CIR process is hereby terminated. The Corporate Debtor is released from the  rigors of the moratorium and is permitted to function through its own board. We  find that the Operational Creditor has not only failed to reimburse the expenses  and fees of the Interim Resolution Professional, but has also wasted the time of  this Bench after the petition was duly admitted. Accordingly, while terminating  the CIR process, a cost of Rs. 50,000/- is imposed on the Operational Creditor  to be paid to the Prime Minister's Relief Fund. Failure to remit the aforesaid  amount shall make the Operational Creditor liable for contempt.  

 

With respect to the fees of the IRP and his reimbursement, we find it  expedient to refer the matter to the IBBI to fix his remuneration in proportion  with the work done and the claim made. 

 

Be listed for a report on remittance of costs, on 14th January, 2020. 

 

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