Fast Track Process Costs

“Fast track process costs” shall mean –
(a) the amount of any interim finance and the costs incurred in raising such finance;
(b) the fees payable to any person acting as a resolution professional;
(c) any costs incurred by the resolution professional in running the business of the corporate debtor as a going concern;
(d) any costs incurred at the expense of the Government to facilitate the process;
(e) amounts due to suppliers of essential goods and services under Regulation 31;
(f) amounts due to a person whose rights are prejudicially affected on account of the moratorium imposed under section 14(1)(d);
(g) expenses incurred on or by the interim resolution professional to the extent ratified under Regulation 32;
(h) expenses incurred on or by the resolution professional fixed under Regulation 33; and
(i) other costs directly relating to the fast track process and approved by the committee.
VL Note : –

Regulation 31 Essential supplies.

The essential goods and services referred to in section 14(2) shall mean-
(a) electricity;
(b) water;
(c) telecommunication services; and
(d) information technology services,
to the extent these are not a direct input to the output produced or supplied by the corporate debtor.

Illustration-Water supplied to a corporate debtor will be essential supplies for drinking and sanitation purposes, and not for generation of hydro-electricity

VL Note : –

Regulation 32 Costs of the interim resolution professional.

(1) The applicant shall fix the expenses to be incurred on or by the interim resolution professional.

(2) The Adjudicating Authority shall fix expenses where the applicant has not fixed expenses under sub-regulation (1).

(3) The applicant shall bear the expenses which shall be reimbursed by the committee to the extent it ratifies.

(4) The amount of expenses ratified by the committee shall be treated as fast track process costs.
Explanation- For the purposes of this Regulation, “expenses” means the fee to be paid to the interim resolution professional and other expenses, including the cost of engaging professional advisors, to be incurred by the interim resolution professional.

VL Note : –

Regulation 33 Resolution professional costs.

The committee shall fix the expenses to be incurred on or by the resolution professional and the expenses shall constitute fast track process costs.

Explanation- For the purposes of this Regulation, “expenses” mean the fee to be paid to the resolution professional and other expenses, including the cost of engaging professional advisors, to be incurred by the resolution professional.
VL Note : –