BSC Bank filed an application for initiating Corporate Insolvency Resolution Process (CIRP) against one of its borrower company M/s Moon Storm Pvt. Ltd., in the National Company Law Tribunal (NCLT). The NCLT allowed the

Insolvency resolution process costs under Section 5(13) of the Insolvency and Bankruptcy Code, 2016 means- (a) the amount of any interim finance and the costs incurred in raising such finance; (b) the fees payable to any person acting as a resolution professional; (c) any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern; (d) any costs incurred at the expense of the Government to facilitate the insolvency resolution process; and (e) any other costs as may be specified by the Board; Regulation 31 of the IBBI (Insolvency Resolution Process of Corporate Persons) Regulation, 2016 states that insolvency resolution process costs under Section 5(13)(e) shall mean- amounts due to suppliers of essential goods and services under Regulation 32; fee payable to authorised representative under sub-regulation (8) of regulation 16A; out of pocket expenses of authorised representative for discharge of his functions under section 25A, amounts due to a person whose rights are prejudicially affected on account of the moratorium imposed under section 14(1)(d); expenses incurred on or by the interim resolution professional to the extent ratified under Regulation 33; expenses incurred on or by the resolution professional fixed under Regulation 34; and other costs directly relating to the corporate insolvency resolution process and approved by the committee. Regulation 34 of the IBBI (Insolvency Resolution Process of Corporate Persons) Regulation, 2016 the committee shall fix the expenses to be incurred on or by the resolution professional and the expenses shall constitute insolvency resolution process costs. Explanation - For the purposes of this Regulation, "expenses" mean the fee to be paid to the resolution professional and other expenses, including the cost of engaging professional advisors, to be incurred by the resolution professional." Keeping in view Regulation 31 read with Regulation 34 of the IBBI (Insolvency Resolution Process of Corporate Persons) Regulation, 2016, NCLT had no jurisdiction to decide the resolution cost including the fee payable of the 'Resolution Professional'.