Conflict between the provisions of the Code (IBC) - Liquidator’s Fees

Conflict between the provisions of the Code (IBC) - Liquidator’s Fees 

# 34. Appointment of liquidator and fee to be paid. -

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(8) An insolvency professional proposed to be appointed as a liquidator shall charge such fee for the conduct of the liquidation proceedings and in such proportion to the value of the liquidation estate assets, as may be specified by the Board.

(9) The fees for the conduct of the liquidation proceedings under sub-section (8) shall be paid to the liquidator from the proceeds of the liquidation estate under section 53.

# 53. Distribution of assets. -

(1) Notwithstanding anything to the contrary contained in any law enacted by the Parliament or any State Legislature for the time being in force, the proceeds from the sale of the liquidation assets shall be distributed in the following order of priority and within such period as may be specified, namely: -

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(3) The fees payable to the liquidator shall be deducted proportionately from the proceeds payable to each class of recipients under sub-section (1), and the proceeds to the relevant recipient shall be distributed after such deduction.

Sourcing of the Liquidator’s Fees; Section 34(9) specifies that the Liquidator’s Fees shall be paid from the proceeds of the liquidation estate under section 53, whereas Section 53(3)  specify that Liquidator's Fees shall be deducted proportionately from the proceeds payable to each class of recipients under sub-section (1), and the proceeds to the relevant recipient shall be distributed after such deduction.

Apparently there is conflict between the sourcing of Liquidator’s Fees. 

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