High Court (Madras) vide its order dated delivered in July 2020 in the matter of CA. Venkata Siva Kumar vs Insolvency and Bankruptcy Board of India(IBBI) and ors. affixed its stamp on the requirement which mandates that the IP should pay a fee calculated at 0.25% of the professional fee earned for services rendered as an IP in the preceding financial year to the IBBI.
Also, concluded that the IBBI does provide significant services, including in relation to IPs and that there is broad correlation between fees and services. Given the fact that direct or arithmetical correlation as between the fee received and service rendered is not necessary especially in the context of regulatory fees, we are of the view that Regulation 7(2)(ca) of the IP Regulations does not suffer from any constitutional infirmity on account of the absence of quid pro quo.
