Bombay HC holds IBBI Can Levy Regulatory Fee on Resolution Plans

Can IBBI impose a regulatory fee on successful resolution applicants when the levy was introduced after their plans were approved by the CoC but before NCLT approval? BOM HC says yes.

Section 196(1)(c), read with Sections 5(13)(e) and 240 of the IBC, gives IBBI the authority to prescribe the fee as part of CIRP costs. 

The Court also held that the levy is regulatory in character, does not require a narrow one-to-one quid pro quo, and is prospective because it applies to plans approved by the NCLT on or after 1 Oct 2022.