The National Company Law Tribunal (NCLT) at New Delhi has ruled that a financial creditor cannot refuse to pay its share of insolvency costs after participating in Committee of Creditors (CoC) meetings where those costs were placed before members and approved.
A bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi directed CFM Asset Reconstruction Pvt. Ltd. to immediately pay Rs 14.85 lakh towards Corporate Insolvency Resolution Process (CIRP) costs in the insolvency of Dr Jain Video on Wheels Ltd.
The tribunal said that once CIRP expenses are approved by the CoC, they attain finality and are binding on all creditors.
“This Adjudicating Authority is thus of the view that the Respondent…