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Deciphering the Responsibilities of a Resolution Professional within the Framework of the IBC

Shruti Goel
December 28, 2023
Resolution Professional


The Insolvency and Bankruptcy Code (IBC) of India, enacted in 2016, marked a significant shift in the country's approach to resolving corporate insolvency. Among the key players in the insolvency resolution process is the  Resolution Professional (RP). This individual plays a pivotal role in facilitating the smooth and efficient resolution of distressed companies, ensuring fair treatment of creditors and stakeholders. In this blog post, we will delve into the responsibilities, qualifications, challenges, and the broader impact of Resolution Professionals under the IBC. 

Role of a Resolution Professional: 

A Resolution Professional is an independent and qualified individual appointed by the National Company Law Tribunal (NCLT) to oversee the insolvency resolution process. The primary objective is to balance the interests of creditors and ensure the maximization of the value of the corporate debtor's assets. The RP acts as a bridge between the creditors, the corporate debtor, and other stakeholders, working towards a feasible resolution plan within the stipulated timeframe. 

Qualifications and Eligibility: 

The IBC mandates that a Resolution Professional must possess the necessary qualifications and experience to effectively discharge their duties. The Insolvency and Bankruptcy Board of India (IBBI) sets the eligibility criteria, which typically include being a member of a recognized professional body, such as the Institute of Chartered Accountants of India (ICAI), the Institute of Company Secretaries of India (ICSI), or the Institute of Cost Accountants of India (ICMAI). 

Moreover, the RP should not have any conflicting interests that may compromise their impartiality. This ensures that the resolution process is conducted transparently and in the best interests of all stakeholders involved. 

Responsibilities of a Resolution Professional: 

1. Taking Control of the Corporate Debtor: The RP assumes control and custody of the corporate debtor's assets and financial records. This includes taking charge of the day-to-day operations, ensuring business continuity, and preventing any alienation of assets during the resolution process. 

2. Conducting Due Diligence: A thorough assessment of the corporate debtor's financial health is conducted by the RP. This involves scrutinizing financial statements, liabilities, and potential assets for the preparation of an information memorandum that aids prospective resolution applicants in making informed decisions. 

3. Facilitating the Committee of Creditors (CoC): The RP convenes and conducts meetings of the Committee of Creditors, which comprises financial creditors. The CoC plays a crucial role in approving or rejecting resolution plans, and the RP acts as a facilitator in these deliberations. 

4. Inviting Resolution Plans: The RP invites resolution plans from eligible resolution applicants and ensures compliance with the requirements specified in the IBC. The plans are thoroughly examined to ascertain their viability and conformity with the objectives of the resolution process. 

5. Negotiating with Stakeholders: The RP engages in negotiations with the corporate debtor, resolution applicants, and various stakeholders to arrive at a consensus on the most effective resolution plan. This involves addressing concerns, negotiating terms, and ensuring alignment with the interests of all parties involved. 

6. Overseeing the Implementation of the Resolution Plan: Once a resolution plan is approved by the CoC and the NCLT, the RP oversees its implementation. This involves coordinating with the corporate debtor and resolution applicant to ensure a smooth transition and adherence to the approved plan. 

7. Ensuring Compliance: Throughout the process, the RP ensures compliance with the IBC, its regulations, and any directions issued by the NCLT. Non-compliance could lead to legal repercussions and hinder the resolution process. 

Challenges Faced by Resolution Professionals: 

1. Time Constraints: The IBC imposes strict timelines for the resolution process. RPs often face challenges in adhering to these timelines, especially in complex cases where due diligence requires a more extended period.

2. Lack of Cooperation: Obtaining cooperation from various stakeholders, including the corporate debtor, creditors, and resolution applicants, can be challenging. Divergent interests and conflicting priorities may hinder the negotiation and resolution process. 

3. Financial Complexity: Understanding the intricacies of the financial affairs of a distressed company can be challenging. RPs must navigate complex financial structures to propose viable resolution plans. 

4. Legal Scrutiny: The decisions and actions of RPs are subject to legal scrutiny. Any perceived deviation from the IBC's provisions or lack of transparency can lead to legal challenges, adding an additional layer of complexity to the resolution process. 

Impact of the Role of Resolution Professionals: 

1. Enhanced Creditor Confidence: The presence of a qualified RP instills confidence among creditors and stakeholders, ensuring a transparent and accountable resolution process. 

2. Strengthening the Corporate Insolvency Ecosystem: The role of RPs is pivotal in establishing a robust insolvency resolution framework in India. Their adherence to ethical standards and effective management of the resolution process contributes to the credibility of the IBC. 

3. Optimal Asset Utilization: By taking control of the corporate debtor's assets, RPs ensure optimal utilization and prevent value erosion, maximizing returns for creditors. 

4. Rescue of Viable Businesses: RPs play a crucial role in identifying and rescuing viable businesses, contributing to economic stability and preserving employment opportunities. 

5. Encouraging Entrepreneurial Spirit: The IBC, facilitated by RPs, encourages entrepreneurs to participate in the resolution process, fostering a culture of business revival and innovation. 


Resolution Professionals under the IBC play an indispensable role in reshaping the landscape of corporate insolvency in India. Their qualifications, responsibilities, and the challenges they face underscore the complexity of the insolvency resolution process. As the IBC continues to evolve, the role of RPs will remain crucial in ensuring fair and efficient resolution, thereby contributing to the economic growth and stability of the nation. 

About Ancoraa  

Ancoraa Resolution Pvt. Ltd., a company promoted and managed by experienced Insolvency Professions with a  rich experience in corporate banking, debt resolution, and restructuring.  

At Ancoraa Resolution, we are a team of IPs, CAs, CS, Cost Accountants, and Lawyers with deep knowledge and practical experience in the insolvency space. The professionals on our team have extensive experience in leading,  managing and successfully running insolvency processes across industries.  

Ancoraa’s flagship technology, the Rezolution Engine® – is India’s first and only ‘Resolution-as-a-Service’ platform providing a collaborative digital avenue to run the entire resolution process in compliance with the Insolvency and Bankruptcy Code of India. Whether you are a supplier, a homebuyer, a bank, or a personal guarantor, Rezolution Engine® enables anyone to initiate an insolvency application and allows all the participants to get a single point of view to the insolvency and bankruptcy proceedings, while maintaining compliance and governance throughout the process.

About the author
Shruti Goel

Shruti is the operations specialist at Ancoraa. She is responsible for IP engagement, company research and operational excellence initiatives. She is passionate about and writes on topics of Insolvency Technology and administers Ancoraa’s flagship technology platform ‘Rezolution Engine’.

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