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CS Professional · Corporate Restructuring, Valuation and Insolvency · Convening and Conduct of Meetings of Committee of Creditors

Bank A, a member of the COC of Shree Agro Ltd, wishes to be represented at the meetings by a professional other than the resolution professional. Who bears the fees of the insolvency professional so appointed?

Bank A itself bears the fees. The Code allows a COC member to appoint an insolvency professional other than the resolution professional to represent it at meetings, and the proviso states that fees payable for representing an individual creditor are borne by that creditor.

  1. AThe corporate debtor as part of CIRP costs
  2. BThe creditor who appointed the professionalCorrect
  3. CAll COC members in proportion to voting share
  4. DThe Insolvency and Bankruptcy Board of India

Explanation

Section 24(5) lets a COC member appoint an insolvency professional other than the resolution professional to represent it. The proviso says the fees for representing an individual creditor are borne by that creditor. Sharing them as CIRP costs is not provided.

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