Resolution Professional in India: Expert Insolvency Support | ASC Group

The Insolvency and Bankruptcy Code, 2016 (IBC) provides a structured framework for resolving insolvency of corporate persons within prescribed legal processes. A Resolution Professional in India plays a central role in the Corporate Insolvency Resolution Process (CIRP), managing the affairs of the corporate debtor and coordinating key activities under the Code and applicable IBBI regulations.

Who Is a Resolution Professional?

A Resolution Professional (RP) is an insolvency professional appointed to conduct the CIRP or, where applicable, a pre-packaged insolvency resolution process. The RP performs statutory responsibilities under the IBC and is required to maintain professional competence, independence, integrity and due diligence.

During CIRP, the RP generally takes over responsibilities relating to the management of the corporate debtor and works within the framework established by the IBC and the Committee of Creditors (CoC).

Role of a Resolution Professional in CIRP

The Resolution Professional CIRP role involves coordinating and administering several important stages of the insolvency resolution process.

Key responsibilities can include:

  • Taking custody and control of relevant assets and business records
  • Managing the operations of the corporate debtor as a going concern
  • Maintaining and updating creditor claims
  • Convening meetings of the Committee of Creditors
  • Preparing the information memorandum
  • Inviting and facilitating resolution plans in accordance with applicable regulations
  • Preserving and protecting the value of the corporate debtor's assets
  • Representing the corporate debtor in relevant proceedings
  • Coordinating with creditors, resolution applicants and other stakeholders

These responsibilities are reflected in Sections 23 and 25 of the IBC and the applicable CIRP Regulations.

Resolution Professional and Committee of Creditors

The RP works closely with the Committee of Creditors during CIRP. However, the RP's statutory role should not be confused with that of the CoC. The RP conducts the process and performs the responsibilities assigned under the Code, while the CoC exercises the decision-making powers provided to it under the IBC.

The RP also facilitates the submission and consideration of resolution plans in accordance with the applicable legal framework.

Importance of Professional Management During CIRP

CIRP involves multiple stakeholders, financial and operational information, creditor claims, business operations and regulatory requirements. Proper administration is therefore important for maintaining records, protecting assets and conducting the process in accordance with the IBC.

IBBI identifies insolvency professionals as important participants in insolvency proceedings and regulates their professional framework through applicable regulations, guidelines and oversight mechanisms.

How ASC Group Can Help

ASC Group provides professional insolvency and restructuring support relating to CIRP and other IBC-related requirements. Its assistance can include documentation support, financial and operational information review, creditor-claim coordination, process support and assistance with compliance-related activities.

Where a matter requires an appointed insolvency professional, the specific statutory functions must be performed by an eligible professional in accordance with the IBC and applicable IBBI requirements.

Key Considerations When Engaging an RP

Businesses and stakeholders dealing with insolvency proceedings should consider:

  • The professional's eligibility and IBBI registration
  • Relevant insolvency experience
  • Understanding of the corporate debtor's business
  • Independence and professional conduct
  • Ability to manage statutory timelines and documentation
  • Familiarity with applicable IBC and CIRP regulations
  • Proper communication with stakeholders

IBBI continues to issue and update its legal framework, regulations, guidelines and circulars relating to insolvency professionals and CIRP.

Conclusion

A Resolution Professional in India has a defined statutory role in administering the CIRP and managing the affairs of a corporate debtor in accordance with the IBC. From claim management and asset protection to stakeholder coordination and resolution-plan processes, the RP handles several critical responsibilities. ASC Group offers professional support for businesses and stakeholders dealing with insolvency, restructuring and related IBC requirements.

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