DEVARAJAN RAMAN versus BANK OF INDIA LIMITED

DEVARAJAN RAMAN versus BANK OF INDIA LIMITED

Both the NCLT and the NCLAT failed to consider the basis and reasonableness of the appellant's claimed fees and costs and did not record reasons for fixing an ad hoc fee of Rs 5,00,000 plus expenses; this constituted an abdication of jurisdiction and warranted remand to the NCLT to decide the matter afresh within one month.

Parties
Appellant: Devarajan Raman; Respondent: Bank of India Limited
Jurisdiction
India
Judgment Date
05 January 2022
Procedural Posture
Civil Appeal / Appeal From NCLAT to Supreme Court; Matter Remitted to NCLT for Fresh Decision
Outcome
Appeal allowed
Legal Topics
Resolution Professional Fees and Expenses, Insolvency Resolution Process Costs, Judicial Review and Remand, Regulation 34, Section 60(5)(c) Jurisdiction
Insolvency and Bankruptcy Code, 2016 Insolvency Resolution Process Company Law Resolution Professional Fees and Expenses Insolvency Resolution Process Costs Judicial Review and Remand Regulation 34 Section 60(5)(c) Jurisdiction

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 4 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Devarajan Raman

Appellant

Bank of India Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From NCLAT to Supreme Court; Matter Remitted to NCLT for Fresh Decision

Legal Issues

  1. 1 Whether the NCLT and NCLAT properly assessed and gave reasons for the Resolution Professional's claimed fees and costs
  2. 2 Whether the adjudicating authority abdicated its jurisdiction by awarding an ad hoc fee without considering the basis and reasonableness of the claim
  3. 3 Whether the matter should be remitted to the NCLT for fresh consideration of fees and costs

Ratio Decidendi

Both the NCLT and the NCLAT failed to consider the basis and reasonableness of the appellant's claimed fees and costs and did not record reasons for fixing an ad hoc fee of Rs 5,00,000 plus expenses; this constituted an abdication of jurisdiction and warranted remand to the NCLT to decide the matter afresh within one month.

Court Disposition

Appeal allowed

Orders

  • Impugned judgment and order of the NCLAT dated 30 July 2020 set aside
  • Order of the NCLT dated 7 February 2020 set aside