Mobase Wins Relief as NCLT Questions EY’s Success-Fee Arrangement
What Happened
The Chennai NCLT rejected EY’s insolvency plea against Mobase Electronics over a disputed ₹3.11 crore claim linked to a 1% success fee for GST relief. The tribunal said questions over the validity of the outcome-based fee and EY’s entitlement to it require detailed examination and cannot be decided through insolvency proceedings.
Key Takeaways
The NCLT did not rule on misconduct but flagged the fee arrangement for possible review by the ICAI, highlighting concerns around success-based professional fees.