Part - 27

Cost including expenses, charges or fees

299. Cost, expenses, charges or fees payable out of the assets in a winding up by the Tribunal

(1) The assets of a LLP in a winding up by the Tribunal remaining after payment of the fees and expenses properly incurred in preserving, realizing or getting in the assets including, where the LLP has previously commenced to be wound up voluntarily, such remuneration, cost and expenses as the Tribunal may allow to the liquidator in such voluntary winding up, shall, subject to any order of the Tribunal and to the rights of secured creditors if any, be liable to the following payments which shall be made in the following order of priority, namely :-

  (i) – the costs of the petition including the costs of any person appearing on the petition, whose costs are allowed by the Tribunal;

 (ii) – fees to the liquidator appointed from the panel;

(iii) – the necessary disbursements of the Liquidator other than expenses properly incurred in preserving, realizing or getting in the properties of the LLP;

(iv) – the cost of any person properly employed by the Liquidators which may in the form of salary, perks etc and cost incurred in engaging the services of professionals, advocates, experts etc;

 (v) – the fees to be credited to Government;

(vi) – the actual out of pocket expenses necessarily incurred by the members of the Committee of Inspection, and sanctioned by the Tribunal.

(2) Save as otherwise ordered by the Tribunal no payments in respect of bills of professionals, advocates, experts etc shall be allowed out of the assets of the LLP unless the appointment is made in accordance with the rule and the fees payable is approved by the Tribunal.

(3) Nothing contained in this rule shall apply to or affect costs which in the course of legal proceeding by or against the LLP which is being wound up by the Tribunal, are ordered by the Tribunal in which such proceedings are pending, to be paid by the LLP or the liquidator, or the rights of the person to whom such costs are payable.