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Union of India - Section

Section 4 in Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016

4. [ Liquidator's fee. [Substituted by Notification No. IBBI/2019-20/GN/REG047, dated 25.7.2019 (w.e.f. 15.12.2016).]

(1)The fee payable to the liquidator shall be in accordance with the decision taken by the committee of creditors under regulation 39D of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons)Regulations, 2016.
(2)In cases other than those covered under sub-regulation (1), the liquidator shall be entitled to a fee-
(a)at the same rate as the resolution professional was entitled to during the corporate insolvency resolution process, for the period of compromise or arrangement under section 230 of the Companies Act, 2013 (18 of 2013); and
(b)as a percentage of the amount realised net of other liquidation costs, and of the amount distributed, for the balance period of liquidation, as under:
Amount of Realisation/Distribution (In rupees) Percentage of fee on the amount realized/distributed
in the first six months in the next six months Thereafter
Amount of Realisation (exclusive ofliquidation costs)
On the first 1 crore 5.00 3.75 1.88
On the next 9 crore 3.75 2.80 1.41
On the next 40 crore 2.50 1.88 0.94
On the next 50 crore 1.25 0.94 0.51
On further sums realized 0.25 0.19 0.10
Amount Distributed to Stakeholders
On the first 1 crore 2.50 1.88 0.94
On the next 9 crore 1.88 1.40 0.71
On the next 40 crore 1.25 0.94 0.47
On the next 50 crore 0.63 0.48 0.25
On further sums distributed 0.13 0.10 0.05
(3)Where the fee is payable under clause (b) of sub-regulation (2), the liquidator shall be entitled to receive half of the fee payable on realisation only after such realised amount is distributed.Clarification: Regulation 4 of these regulations, as it stood before the commencement of the Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2019 shall continue to be applicable in relation to the liquidation processes already commenced before the coming into force of the said amendment Regulations.]