By Adv. Amir Bavani, Adv. Rishika Kumar & Adv. Pragati Prajapati, AB Legal

The Insolvency and Bankruptcy Code, 2016 (“IBC/Code”) has been framed to have a time-bound mechanism towards the revival of the corporate entities facing financial crunch. The IBC is meant to explore the possibility of the revival of the Corporate Debtor (“CD”), followed by an inclusive approach, first, by trying to balance the interest of all the stakeholders and second, by maximising the value of the assets of the CD. A Resolution Plan is a rehabilitation plan for a CD that is undergoing insolvency, by a Resolution Applicant, who finds the basis of the Plan from the Information Memorandum provided by the Resolution Professional, which covers the various aspect of the Corporate Debtor such as legal, financial, management and technical methods to assist the CD to get back on its feet. The Resolution Plan shall not only be in accordance with the Information Memorandum but shall be in compliance with the provisions of the IBC. The Resolution Plan of the Resolution Applicant gets the primary nod from the Committee of Creditors (“CoC”) and upon the CoC’s approval the same is placed before the Adjudicating Authority for their approval, which then attains finality.

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