Resolution Professional in India: Understanding the IBC Role and Process

Understand the role of a Resolution Professional in India, including the IBC process, key responsibilities, eligibility requirements, and how an Interim Resolution Professional becomes an RP. ASC Group provides professional guidance on insolvency and restructuring matters under the Insolvency and Bankruptcy Code.

Who Is a Resolution Professional?

A resolution professional is an insolvency professional appointed to manage and conduct the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The RP plays a central role in protecting the corporate debtor's assets, maintaining business operations, coordinating with creditors, and facilitating the resolution process.

The framework is regulated by the Insolvency and Bankruptcy Board of India (IBBI), with the applicable regulations updated periodically.

Role of an Interim Resolution Professional

When the National Company Law Tribunal (NCLT) admits a corporate insolvency application, an Interim Resolution Professional (IRP) is appointed. The IRP initially takes control of the corporate debtor's affairs and performs functions necessary to keep the business running and preserve its assets.

The IRP also receives and verifies claims, constitutes the Committee of Creditors (CoC), and convenes its meetings. At the first CoC meeting, the creditors decide whether to confirm the IRP as the Resolution Professional or replace the IRP with another eligible professional. This decision requires at least 66% of the voting share of financial creditors.

Key Responsibilities of a Resolution Professional

Once appointed, the RP is responsible for conducting the CIRP and managing the corporate debtor during the process. Important responsibilities include:

  • Preserving and protecting the assets of the corporate debtor.
  • Maintaining and updating the list of claims submitted by creditors.
  • Conducting meetings of the Committee of Creditors.
  • Preparing the Information Memorandum for prospective resolution applicants.
  • Inviting and evaluating resolution plans in accordance with the IBC and applicable regulations.
  • Examining resolution plans for compliance with the statutory requirements.
  • Presenting compliant plans to the CoC for consideration.
  • Performing other functions prescribed under the IBC and CIRP Regulations.

The RP therefore acts as an important link between the corporate debtor, creditors, prospective resolution applicants, the adjudicating authority, and the IBBI.

Eligibility to Become a Resolution Professional

A person cannot simply act as an RP based on professional experience alone. The individual must qualify as an insolvency professional under the regulatory framework and meet the applicable requirements prescribed by the IBC and IBBI.

Generally, this involves obtaining registration with IBBI, maintaining the required professional membership and authorisation for assignment, and complying with applicable eligibility, independence, and conduct requirements.

IBBI also issues guidelines concerning the recommendation and appointment of insolvency professionals for roles such as IRP and RP. The 2026 guidelines continue to provide a framework for such recommendations and appointments.

Why Is the RP Important in the IBC Process?

The effectiveness of the insolvency process depends significantly on timely administration, accurate financial information, protection of assets, and transparent interaction with creditors. A competent RP helps ensure that the CIRP proceeds according to the statutory framework while enabling the CoC to evaluate viable resolution proposals.

If the CoC believes that an appointed RP should be replaced, the IBC also provides a prescribed mechanism for replacement.

How ASC Group Can Help

IBC proceedings involve complex legal, financial, procedural, and compliance requirements. ASC Group assists businesses and stakeholders with professional guidance relating to insolvency, restructuring, resolution processes, and regulatory compliance.

Whether you need assistance understanding the role of a resolution professional or navigating an insolvency-related matter, obtaining timely professional advice can help ensure better compliance and informed decision-making.

Conclusion

A Resolution Professional in India has a crucial responsibility in the CIRP framework. From safeguarding the corporate debtor's assets to coordinating with the CoC and facilitating resolution plans, the RP helps drive the insolvency process toward a structured outcome. As IBC regulations continue to evolve, professional expertise and regulatory compliance remain essential for effective insolvency resolution.

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