In Brief
A Resolution Professional appointed in a corporate insolvency claimed fees and expenses totalling Rs 14,75,660 based on his accepted technical and financial bid. The NCLT and NCLAT summarily awarded only Rs 5,00,000 plus expenses without examining the basis of his claim. The Supreme Court held that both orders were vitiated by abdication of jurisdiction. Although the adjudicating authority has power to determine insolvency resolution process costs, it must exercise this by considering the claim's basis, the agreed terms, and the financial creditor's acceptance, and must provide reasoned findings. The Court set aside both orders and remitted the matter to the NCLT for fresh consideration within one month.
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