The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member – Judicial) and Jatindranath Swain (Member – Technical), has addressed the question of whether ratification of fees and expenses payable to an Interim Resolution Professional (IRP) must be express and recorded formally, or it can be implied from the conduct and minutes of the CoC.
The bench held that the formal ratification is not mandatory if the CoC’s conduct and meeting records are approved.
Background of the Case
The operational creditor filed an application u/s 9 of the IBC seeking initiation of the Corporate Insolvency Process (CIRP) of the corporate debtor. The adjudicating authority accepted the…