The National Company Law Tribunal (NCLT), Chennai, has dismissed an insolvency petition seeking recovery of approximately ₹3.11 crore as an outcome-based professional fee for services rendered in GST proceedings. The Tribunal held that substantial disputes existed over the entitlement, enforceability and legal permissibility of the success-fee arrangement before the statutory insolvency demand notice was issued.
The Bench of Jyoti Kumar Tripathi (Judicial Member) and Ravichandran Ramasamy (Technical Member) observed that proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016, could not be used to resolve complex contractual disputes requiring detailed adjudication.
The Bench also directed that a copy of its order may be…