Background Matrix 

In the Instant case of Ashok Kriplani v. Ramanathan Bhuvaneshwari, The appellant was designated as the Resolution Professional in the current case by NCLT, which directed that CIRP be initiated against the Corporate Debtor, Dreamz Infra India Ltd. on a Project Wise Basis. The CIRP costs for a previous action in which the appellant was appointed as the RP remained unpaid, hence the appellant preferred an application before the NCLT requesting to intervene. The NCLT denied the application. Angry with the contested ruling, the appellant filed this appeal with the NCLAT to contest it. The appellant also filed a request to excuse the 145-day delay in filing the current appeal as well as the additional 42-day delay in filing the request for the current appeal.

Issue 

Whether IRP and RP will be compensated for a project other than the one for which they were appointed?

Analysis of NCLAT order 

The Interim Resolution Professional and Resolution Professional in a Project Wise Insolvency cannot ask the members of the Committee of Creditors of another project of the Corporate Debtor for any unpaid Fees and Costs, according to a Division bench made up of Justice M. Venugopal and Ms Shreesha Merla, a Technical Member of the NCLAT. The appellant lacks locus standi to assert a claim for any outstanding Fees or Costs from the members of the CoCs, according to the NCLAT, which maintained the challenged ruling made by the NCLT.

According to the NCLAT, the appellant’s justification for delaying filing the current appeal delay in issuing a reminder to procure a certified copy is sufficient, and the current appeal can thus be excused in the interest of justice. The NCLAT noted that the appellant had been appointed as RP in another project of the corporate debtor but had since been replaced, indicating that neither the appellant nor the previous project is related. The appellant cannot demand any outstanding Fees or Costs from the members of the CoCs of another project of the Corporate Debtor, the NCLAT further stated and therefore uphold the order made by the NCLT and dismissed the petition.

CASE NAME – Ashok Kriplani v. Ramanathan Bhuvaneshwari, Comp. App. (AT) (CH) (Ins) No. 122/2023