In an important clarificatory circular (available here) issued by the Insolvency and Bankruptcy Board of India (“IBBI”), dated 16 January 2018, it has clarified that :
- Fees to reflect work. An insolvency professional shall render services for a fee which is a reasonable reflection of his work, raise bills / invoices in his name towards such fees, and such fees shall be paid to his bank account.
- Exclusion from the insolvency resolution process cost. Any payment of fees for the services of an insolvency professional, to any person other than the insolvency professional, shall not form part of the insolvency resolution process cost.
- Payment to external agencies. Any other professional appointed by an insolvency professional shall raise bills / invoices in his / its (such as registered valuer) name towards such fees, and such fees shall be paid to his / its bank account.
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