The NCLAT has upheld the authority of the Committee of Creditors to limit the remuneration of insolvency professionals, emphasizing adherence to statutory frameworks.
Remuneration Limited to ₹3 Lakh in International Trenching Case
The National Company Law Appellate Tribunal (NCLAT) recently ruled that insolvency professionals are entitled only to fees approved by the Committee of Creditors (CoC). This ruling reinforces the principle that insolvency professionals cannot claim vested rights to extended remuneration beyond what is stipulated in their contracts.
The decision arose from disputes within the framework of the Insolvency and Bankruptcy Code (IBC) and the regulations issued by the Insolvency and Bankruptcy Board of India (IBBI). The NCLAT emphasized that remuneration claims will be strictly examined within this regulatory context, underscoring the need for compliance among insolvency practitioners.
This ruling serves as a critical reminder for insolvency professionals regarding the bounds of their remuneration claims, establishing clear guidelines for future fee-related disputes governed by the IBC.
Citations
- International Trenching Case (2026) NCLAT
