NCLAT Reduces ₹1 Lakh Cost To ₹10 Thousand On Unity SFB For Delay In Paying RP Fee

The National Company Law Appellate Tribunal (NCLAT) at Delhi recently reduced the cost imposed on Unity Small Finance Bank from Rs 1 lakh to Rs 10,000 in each case for a delay of nearly three weeks in paying the fee of a resolution professional appointed in insolvency proceedings against a personal guarantor.

A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra held, “We are of the view that it was well within the discretion of the Adjudicating Authority to impose cost when Resolution Professional has made complaint.”

The tribunal directed that the reduced amount be deposited in the Prime Minister National Relief Fund within a week.

The matter arose from proceedings initiated by the bank against a personal guarantor, where a resolution professional was appointed on January 28, 2026.

The tribunal had directed the bank to deposit a fee of Rs 2 lakh within a week. When the matter was taken up on February 23, 2026, the resolution professional informed the tribunal that the fee had not been received. The tribunal then imposed a cost of Rs 1 lakh and directed that the fee be paid within two days. The bank complied with this direction.

The bank later sought a waiver of the cost, which was refused by the tribunal in its March 24, 2026 orders, leading to the appeals.

Before the appellate tribunal, the bank said the delay was not deliberate and had occurred due to compliance requirements relating to KYC documentation.

It pointed out that the fee had been paid within two days of the February 23 order and submitted that the cost ought to have been waived.

The appellate tribunal noted that the fee had not been paid within the time originally granted and held that the tribunal was justified in imposing costs when the resolution professional complained of non-payment.

It also took note of the subsequent payment and the explanation offered for the delay.

It held, “In facts of the present case, we are of the view that cost of Rs.1 Lakh in both the cases need to be reduced to Rs.10,000/- (Rupees Ten Thousand Only), which may be deposited in Prime Minister National Relief Fund within a week.”