The National Company Law Tribunal (NCLT), Chennai, has questioned the validity of a 1 per cent outcome-based fee claimed by Ernst & Young LLP (EY) for securing relief for Mobase Electronics India Private Limited in GST proceedings.
A Bench of Judicial Member Jyoti Kumar Tripathi and Technical Member Ravichandran Ramasamy rejected EY’s plea under Section 9 of the Insolvency and Bankruptcy Code (IBC), which sought to initiate insolvency proceedings against Mobase over an alleged operational debt of about Rs 3.11 crore.
EY had claimed that Mobase engaged it for professional assistance in GST proceedings concerning financial years 2019-20, 2020-21 and 2021-22. The engagement, according to EY, provided for an initial fee of Rs 25 lakh…