NCLT says Pre-Existing Dispute Defeats CIRP for Success Fee

Ernst & Young LLP claimed ₹3.11 crore from MobaseElectronics as a 1% success fee linked to GST relief obtained in adjudication proceedings. NCLT found that Mobase had disputed the fee before the statutory demand notice, the underlying GST proceedings had not attained finality and the enforceability of the outcome-based fee itself required further examination. The Section 9 petition was therefore dismissed.