Insolvency Resolution Professional to Conduct CIRP under IBC, 2016

The Insolvency and Bankruptcy Code, 2016 includes a system called the Corporate Insolvency Resolution Process (CIRP) in which an insolvency process is initiated when a corporate debtor fails to make payments to its creditors. 

Interim Resolution Professional 

On the day of commencement of insolvency, the adjudicating body selects a person to oversee the entire process. The IRP is in charge of overseeing the CIRP proceedings as well as determining whether the corporate debtor is operating as a continuing concern. 

As the name implies, the IRP’s position is only temporary until the Committee of Creditors (COC) appoints a Resolution Professional. 

IRP have a duty code laid down by Section 18 directed by the Insolvency and Bankruptcy Board of India (IBBI). 

Appointment of Resolution Professional by COC 

Under Section 18 of the Code, the IRP constitutes the COC. Following the committee’s commission, the COC’s first order of business is to nominate the Resolution Professional.  

The COC must convene its first meeting within seven days after its formation. The committee examines whether the IRP can be appointed as the Resolution Professional to continue conducting the CIRP at this meeting. 

The committee then votes, and if the majority is equal to or more than 66%, the IRP is appointed as the Resolution Professional. The committee, on the other hand, can decide to replace the IRP and designate a new certified Resolution Professional to oversee the procedure. In this circumstance, the committee requests that the Resolution Professional be appointed by the adjudicating body. 

Following that, the adjudicating authority selects a Resolution Professional and submits it to the IBBI for approval. If the board rejects the Resolution Professional chosen by the adjudicating authority, the IRP returns to its previous status until the IBBI chooses someone. 

Responsibilities and Duties of Resolution Professional 

The Resolution Professional is appointed, who then performs the CIRP. With various obligations and functions to accomplish, he is one of the most important components of the entire process. 

Conduction of CIRP 

The Resolution Professional is responsible for overseeing all stages of the CIRP process and ensuring that it runs smoothly and on time. The Resolution Professional’s management of the corporate debtor’s operations does not cease after the process.  

The Resolution Professional is in charge of keeping the operations running until the resolution plan is implemented. 

The Resolution Plan’s Analysis 

The IBBI has created a list of requirements for a resolution plan. The Resolution Professional receives the resolution plans from the resolution applicants.  

The Resolution Professional studies and analyses each resolution plan after receiving it. He must make sure that the resolution plans meet all of the IBBI’s requirements. 

If the plan does not meet the IBBI’s requirements, the adjudicating body can reject it. This could result in the Resolution Professional’s dismissal. 

Liquidator 

Under certain situations, the adjudicating body can order the corporate debtor to be liquidated. The adjudicating authority then selects a liquidator.  

The Resolution Professional is the liquidator’s first choice. The Resolution Professional assumes the role of liquidator in this case and oversees the liquidation procedure. 

Conclusion 

Resolution Professional is the backbone of the procedure. The Resolution Professional is the individual who is appointed first and removed last. The fundamental responsibility of the Resolution Professional is to ensure that the corporate debtor is revived. ASC Insolvency services has been appointed as registered Insolvency and Bankruptcy services with team of Insolvency professionals, Company Secretary, Chartered Accountant, etc.