NCLT Adjourns RP Fee Dispute in Guntur Multi Packing Liquidation

Authority: National Company Law Tribunal, Amaravati Bench (Through Hybrid Mode)

Order Date: 06.07.2026

Case Overview

This matter arises from an application (IA(IBC)/01/2026) filed by the Resolution Professional/Liquidator in the ongoing liquidation process of Guntur Multi Packing Industries Pvt Ltd (Corporate Debtor). The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, and Regulations 4 of IBBI Regulations, 2016. The Liquidator seeks directions for the Committee of Creditors (CoC) to pay the unpaid Corporate Insolvency Resolution Process (CIRP) expenses, including the remuneration of the Interim Resolution Professional/Resolution Professional as approved by the CoC during its meetings, and to reimburse expenditures incurred by the Liquidator during the liquidation process.

The principal dispute concerns the fixation of fees payable to the Resolution Professional. Specifically, the remuneration for the RP was not determined by the CoC in its second meeting, and the IRP remuneration fixed in that same meeting has been disputed by the CoC.

The NCLT bench observed that in the absence of any resolution by the CoC regarding the fixation of the RP's fee, the dispute could be appropriately resolved by adopting the principles contained in Schedule-II of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. This schedule was inserted by notification No. IBBI/2022-23/GN/REG091 dated 13.09.2022, effective from that date. The Tribunal noted this proposal would be subject to the consent of both parties, notwithstanding that this amendment came into force subsequent to the relevant period of this case. The Resolution Professional has expressed willingness to have his fee determined in terms of this Schedule.

Final Outcome

The counsel for the CoC/Respondent requested and was granted one day to obtain instructions from the CoC on the Tribunal's proposal to use Schedule-II for fee determination. The matter was adjourned and listed for further consideration on 07.07.2026. No final ruling on the payment of expenses or fee determination was issued in this order.

Topics: Insolvency Proceedings, Professional Remuneration, Committee of Creditors